Rare Earth Concentrate Prices Have Risen Four Consecutive Times!

On July 10th, Northern Rare Earths (600111.SH) issued a notice, clearly stating that the trading price of rare earth concentrate in the third quarter of 2025 would be 19,109 yuan per ton (dry weight, REO = 50%), excluding tax. It also announced the linkage mechanism between REO (rare earth oxide) content and price: for every 1% increase or decrease in REO, the tax-excluded price would correspondingly increase or decrease by 382.18 yuan per ton. This pricing mechanism continues the company's recent reform direction of promoting market-based pricing, and provides a clearer cost calculation basis for downstream enterprises.
Transparency of pricing mechanism: REO content is directly linked to the price.
According to the announcement, the adjusted trading price of rare earth concentrate is based on a REO content of 50%. If the REO content in actual transactions changes, the price will fluctuate at a rate of 382.18 yuan per ton per percentage point. For example, if the REO content of the rare earth concentrate is 51%, the trading price will be raised to 19,109 + 382.18 = 19,491.18 yuan per ton; if the REO content is 49%, the price will be lowered to 19,109 - 382.18 = 18,726.82 yuan per ton.
Industry insiders point out that this "benchmark price + content fluctuation" pricing model not only reflects the core influence of the quality of rare earth concentrate on the price, but also avoids the drawback that a single fixed price is difficult to adapt to market changes. Compared with the previously more ambiguous pricing methods, this adjustment has further enhanced the transparency of transactions and helps to reduce disputes among upstream and downstream enterprises.
Market Supply and Demand Dynamics: The Industry Logic Behind Price Adjustments
Since 2025, the rare earth market has exhibited the characteristics of "divergent demand and stricter policies". The demand for neodymium-iron-boron magnetic materials in emerging industries such as new energy vehicles and wind power has continued to grow, pushing the prices of light rare earths (such as praseodymium and neodymium) to fluctuate upward; while in traditional fields such as consumer electronics, the demand is weak, which puts pressure on the prices of medium and heavy rare earths (such as dysprosium and terbium). As the largest global supplier of light rare earths, Northern Rare Earths has its pricing strategy regarded as an industry trendsetter.
It is worth noting that this announcement does not directly mention the specific drivers behind the price adjustment. However, considering the recent industry trends, the following factors may have an impact:
▶ Cost pressure transmission: The environmental protection and energy costs in the rare earth mining and smelting processes have been continuously rising, prompting enterprises to cover these costs through price adjustments;
▶ Policy regulation expectations: The Ministry of Industry and other departments have recently emphasized "high-quality development of the rare earth industry", possibly guiding market order through pricing set by leading enterprises;
▶ International market linkage: The development progress of overseas rare earth projects has fallen short of expectations, and the global supply chain still relies on China's supply, supporting domestic pricing power.
Downstream impact: The cost calculation for magnetic material enterprises becomes clearer
The adjustment of the pricing mechanism of Northern Rare Earths brings both advantages and disadvantages for downstream neodymium-iron-boron magnetic material enterprises. On one hand, the clear rule linking REO content to the price helps enterprises more accurately calculate raw material costs and optimize production plans. On the other hand, if the price of rare earth concentrate continues to rise, magnetic material enterprises may face pressure to pass on costs, which in turn may affect their profit margins.
A relevant official from Jinli Rare Earth Magnet (300748.SZ) stated: "The transparency of pricing at Northern Rare Earth is a sign of industry progress. We prefer to establish long-term and stable partnerships with suppliers to jointly cope with market fluctuations."
Industry Outlook: The Time for the Revaluation of Rare Earths Is Approaching
In the medium and long term, the strategic nature of rare earths is becoming increasingly prominent. With the advancement of the "carbon neutrality" goal, the demand for high-performance rare earth permanent magnetic materials in fields such as new energy vehicles and industrial motors will continue to grow. Northern Rare Earths has strengthened its market position through the reform of its pricing mechanism and has also provided a reference for the standardized development of the industry.