I. Trend of Rare Earth Market

As of August 23, the price of Pr-Nd oxides at the weekend was 309,000 yuan/ton, the price trend was 2.15% higher and 3.59% lower than that of the previous year; the domestic reference quotation of dysprosium-iron alloys was 1910 yuan/ton, the price trend was 1.04% lower and 65.37% higher than that of the previous year; and the domestic reference quotation of Pr-Nd alloys was 39.15%. 5500 yuan/ton, the price trend increased by 2.33%, 4.12% year-on-year decline; praseodymium oxide factory mainstream quotation at 382 500 yuan/ton, the price trend is temporarily stable, down 6.71%; dysprosium oxide factory mainstream quotation at 1915 000 yuan/ton, the price trend declined 1.29%, up 67.61%; neodymium oxide factory price at 31100 yuan/ton, the price trend increased. 2.13%, down 1.74% year-on-year; neodymium quotation is 395,500 yuan/ton, price trend is up 2.33%, down 2.94% year-on-year; praseodymium ex-factory quotation is 695,000 yuan/ton, price trend is stable, up 5.30% year-on-year; dysprosium ex-factory mainstream quotation is 230,000 yuan/ton, price trend is stable, up 41.54% year-on-year.
II. Rare Earth Price Index

On August 23, the rare earth index was 372 points, down 1 point from yesterday, down 62.80% from the cyclical peak of 1000 points (2011-12-06), and up 37.27% from the lowest point of 271 on September 13, 2015. (Note: Period refers to 2011-12-01 to date).
III. Market Analysis

Recently, the price of light rare earth has risen slightly in the rare earth market. The price of praseodymium and neodymium products has risen by about 2%. The price of neodymium oxide and neodymium oxide has risen first. However, the downstream demand for light rare earth has not improved significantly. A small number of downstream merchants replenish their products on demand. The actual transaction price is still at a low level, and the on-site wait-and-see mood is strong. The price of heavy rare earth in China rose sharply in the second quarter due to Myanmar’s export restrictions, and has been at a high price since then. Recently, the price of dysprosium and terbium system has fallen slightly. The price fluctuation of rare earth market is related to environmental protection supervision in the whole country. Rare earth production has its particularity, especially the radiation hazard of some products, which makes environmental protection supervision stricter. Under strict environmental protection inspection, manufacturers control sales reasonably, but in the near future, they are greatly affected by external environment. They mainly benefit from the active distribution of new energy fields by mainstream automobile factories at home and abroad. The increasing number of new energy vehicles has brought some favorable support to the rare earth market. The price of domestic rare earth market is rising, but in the near future, the prices of domestic rare earth market are rising. Large conglomerates are also cautious about pricing their products.

Recently, the State Environmental Protection Department has made no reduction in its stringent efforts, which has a greater impact on the rare earth industry. The rare earth industry has a low start-up and a cold market. At the recent press conference on macroeconomic operation held by the Development and Reform Commission, Meng Wei, spokesman of the National Development and Reform Commission (NDRC), answering reporters’questions on rare earth, said that on the basis of in-depth investigation and scientific demonstration, relevant policies and measures would be put forward to give full play to the special value of rare earth as a strategic resource. Due to the increasingly obvious regulatory effect, the supply of raw ore resources in the upstream of the rare earth industry has shrunk, and people in the domestic market are waiting for the good news of the policy and the national reserve.

IV. Future Prospects

Rare earth analysts of business associations expect that the domestic environmental stringency will not diminish in the near future, coupled with the domestic reorganization of the order of the rare earth industry, there will be little change in the supply, but the recent rare earth market trading market is general, but the demand for new energy vehicles has increased, and the price of the rare earth market is expected to rise.