European Rare Earth Weekly Review: Yttrium Soars Due to Supply Shortage

London, September 25 (Argus) - China's licensing control over rare earth exports has plunged overseas markets into a severe supply shortage, prompting some buyers to pay higher prices for larger inventories. Spot prices for yttrium oxide delivered to Europe have jumped again. Prices of other rare earth products in Europe have fluctuated less this week.

Light Rare Earth:

Over the past week, the prices of rare earths neodymium/praseodymium have slightly declined. The reason is that the pace of inventory replenishment by downstream magnetic material factories in China has slowed down, and the rumor of increased supply of rare earth ores has led to a slightly pessimistic sentiment in the market, which has permeated the international market and slightly depressed the delivery prices of light rare earth products.

The European price of 99.5-99.9% neodymium oxide dropped by 2 dollars this week to 91-94 dollars per kilogram, while the European price of 99% neodymium metal remained stable at 115.50-117.50 dollars per kilogram. The European price of 99.5-99.9% praseodymium oxide fell by 50 cents to 92-94.50 dollars per kilogram, and the European price of 99% neodymium praseodymium oxide slightly dropped to 82.50-85 dollars per kilogram.

Heavy Rare Earth:

Due to the continuous tightness of the spot supply and the convergence of purchase and selling prices at significantly higher levels, the weekly estimated landed price of 99.999% yttrium oxide in Europe this week has jumped from $90 - $105 per kilogram a week ago to $150 - $200 per kilogram.

Some market participants believe that due to the extremely tight supply outside China and the continuous inquiries from buyers, some suppliers may even quote prices for yttrium oxide higher than $200 per kilogram. However, due to the supply shortage, the liquidity of spot supply this month is low, and many customers who want to purchase yttrium oxide and metallic yttrium have not been able to obtain the goods because suppliers have difficulty procuring products to meet market demand.

Some buyers are willing to purchase at exceptionally high prices to meet critical demands, but the quantity of high-priced transactions is limited, and this price is also difficult to have market representativeness.