1. Briefing of Important News
This week, price of PrNd has a slight increase while DyFe and Tb keep stabilized. Price from Asian Metal at this weekend presented: PrNd metal 393-398RMB/KG, DyFe alloy 1900-1920RMB/KG, and Tb metal 5100-5150RMB/KG.
Wesfarmers recently said it had dropped a USD1.5 billion buyout deal for Lynas. Wesfarmers was acquired subject to the renewal of Lynas' business license. Last week, Malaysia extended the license for a rare earth processing plant owned by Lynas by six months, shorter than investors and analysts had expected. Wesfarmers said the company was unable to go ahead with the deal despite the extension of Lynas' licensing.
2. Analysis of Professional Insiders
The market for rare earth rose as a whole and then fell this week, mainly in light rare earth PrNd products. The situation of low inventory shortage of metal PrNd gradually eases with the production and order replenishment, and the temporary intermediate link tension to ease, PrNd shock callback under the impact of supply and demand.
PrNd oxide trend changes with the purchase heat, and fears for high price begins manifest before the high level, but the price from big factory is relatively firm, later appeared to fall but not much. Metal PrNd following the adjustment of PrNd oxide, but the rise slightly lags; cost pressure is more serious, only the original low inventory transaction pressure is small. Dy oxide and DyFe were weak this week, but industry expectations are consistent and the weakness is relatively flat and generally stable.
Since Tengchong had blockade, the rare earth imports of Myanmar shrank, only a small portion of the flow to maintain in Longchuan which has a far distance, but the actual influence on heavy rare earth relatively not much at present: first, the domestic heavy rare earth inventories relatively abundant, Dy and Tb oxide still relatively high, and the recent weak stability is the embodiment of the supply and demand adjustment. Second, the amount of rare earth still being cleared from Myanmar is small, and even if the blockage happens, one cup of water won't have much effect on the fire of a cartload of firewoods. Third, although there may be speculation mentality in the industry, the industry has been very rational after several fluctuations, the emotional impact may not be obvious. (Ruidao Rare Earth Information)
Listing price of August 19th from China Southern Rare Earth
Unit: 10,000RMB/ton (EXW price incl. VAT)
3. Tendency Chart (refer to Asian Metal)