NdPr is on the rise again. Up + 1.91% today. Week to date; up +...

NdPr is on the rise again. Up + 1.91% today. Week to date; up + 14.25%

I expect this trend to continue for some time as the macroeconomic factors moving the price are not short term.

To put things into perspective; another 10% rise would see NdPr prices back at peak levels.




Confused why prices might be on the rise again?

"Driven by downstream demand such as new energy, downstream rare earths are used in new energy vehicles, wind power, energy-saving inverter air conditioners, traditional automobiles and other fields. According to data released by the China Association of Automobile Manufacturers, sales of new energy narrow passenger vehicles in May 2021 were 237,000 units , An increase of 178.82% year-on-year; cumulative sales of 683,000 vehicles, an increase of 318.2% year-on-year, downstream demand is expected to support the steady progress of rare earth prices. 3) Price increase pro-cyclical allocation strategy, downstream demand for new energy vehicles, wind power, energy-saving inverter air conditioners, etc. may continue to grow, maintaining the high prices of praseodymium oxide, dysprosium oxide, and terbium oxide in 2021.

National policy support. Policies such as the Rare Earth Management Regulations may be gradually introduced in the second half of the year, which is expected to ensure the medium and long-term high-quality development of the rare earth industry. The price of rare earths may start to grow. The performance of companies related to the rare earth industry chain is expected to grow sustainably in the long term. On the whole, after the outbreak in the first quarter and the callback in the second quarter, the rare earth sector may rise again in the third to fourth quarters. The time for the allocation of the entire rare earth industry chain has arrived, and the strategic value of rare earth resources is still being reassessed.

The agency believes that liquidity is reasonable and abundant, and rare earth prices may increase steadily in the second half of the year."

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