London, September 25 (Argus) - China's license control on rare earth exports has plunged the overseas market into a severe supply shortage, prompting some buyers to pay higher prices to purchase more inventories. The spot price of europium oxide for delivery in Europe has jumped again. The prices of other rare earth products in Europe have fluctuated slightly this week.
Light rare earths
Over the past week, the prices of neodymium/praseodymium have slightly decreased due to the slowdown in inventory replenishment by downstream magnetic material factories in China and the slightly pessimistic sentiment in the market caused by rumors of increased rare earth ore supply, which has slightly depressed the delivery prices of light rare earth products in the international market.
The spot price of 99.5-99.9% neodymium oxide in Europe this week dropped by $2 to $91-94/kg CIF, while the CIF price of 99% neodymium metal remained stable at $115.50-117.50/kg. The spot price of 99.5-99.9% praseodymium oxide in Europe this week fell by 50 cents to $92-94.50/kg CIF, while the spot price of 99% praseodymium neodymium oxide in Europe slightly dropped to $82.50-85/kg CIF.
Heavy rare earths
Due to the continued tightness in spot supply and the convergence of buying and selling prices at significantly higher levels, the spot price of 99.999% yttrium oxide in Europe this week jumped from $90-105/kg CIF last week to $150-200/kg CIF.
Some market participants believe that due to the very tight supply outside China and the continuous inquiries from buyers, some suppliers' quotations for yttrium oxide may even be higher, exceeding $200/kg. However, due to the supply shortage, the spot liquidity is low this month, and many customers who want to purchase yttrium oxide and yttrium metal have not been able to obtain supplies as suppliers find it difficult to procure products to meet market demand.
Some buyers are willing to pay particularly high prices to meet critical needs, but the volume of high-priced transactions is limited, and this price is not very representative of the market.
Atlantic market participants are still focusing on obtaining export licenses for restricted heavy rare earth products from China. Without more licenses, European customers cannot replenish new inventories, and spot prices are unlikely to decline.
The spot price of 99.5% dysprosium oxide remained unchanged this week, with a CIF price in Europe of $780-900/kg, and the spot price of 99.99% terbium oxide remained stable at $3,300-3,900/kg CIF.
The spot price of erbium oxide remained stable this week, but it is still relatively high compared to the Chinese market price, with a CIF price in Europe of $50-54/kg. Due to the impact of China's customs inspection of rare earth export impurities, the delivery of Chinese erbium oxide at ports continues to face the risk of delay.
