According to the commodity market analysis system of Business Society, domestic light rare earth market prices soared throughout February. On February 9, the Business Society Rare Earth Index stood at 703 points, up 59 points from the beginning of the month, down 30.19% from the cycle high of 1007 points (February 24, 2022), and up 159.41% from the cycle low of 271 points (September 13, 2015). (Note: The cycle refers to the period from December 1, 2011, to the present.)
Domestic prices of neodymium oxide, neodymium metal, praseodymium oxide, praseodymium metal, praseodymium-neodymium alloy, and praseodymium-neodymium oxide all showed upward trends. As of the 10th, the price of neodymium oxide was 872,500 yuan per ton, with a price increase of 10.09% in early February. The price of neodymium metal was 1,065,000 yuan per ton, rising by 12.40% in early February. The price of praseodymium oxide was 845,000 yuan per ton, up 10.24%. The price of praseodymium metal was 1,030,000 yuan per ton, increasing by 10.16%. The price of praseodymium-neodymium alloy was 985,000 yuan per ton, up 7.65%. The price of praseodymium-neodymium oxide was 815,000 yuan per ton, rising by 7.95% in early February.
In early February, domestic light rare earth market prices surged, with strong bullish sentiment in the raw material market. Macro-level news indicated a tightening supply-demand balance for praseodymium-neodymium products, driven by expectations of sustained supply constraints following the post-holiday shutdown of a separation plant. Additionally, active procurement and inventory replenishment by major magnetic material manufacturers further fueled bullish sentiment. Market inquiries for praseodymium-neodymium products increased significantly, leading to a notable rise in spot prices. In January 2026, rare earth producers raised the transaction price of rare earth concentrate for the first quarter to 26,834 yuan per ton, marking the sixth consecutive price hike. This directly increased the cost base for downstream products such as praseodymium-neodymium oxide.
A surge in rigid demand, driven by the booming development of downstream industries such as new energy vehicles and home appliances, has led to increased orders for magnetic material manufacturers. The global supply-demand gap for praseodymium-neodymium oxide is expected to widen to 9,000 tons in 2026, with the supply-demand imbalance continuing to expand, pushing the light rare earth market higher. However, due to significant price fluctuations, downstream actual transactions have not yet fully caught up with the price movements.
After years of regulation, China's rare earth industry has gradually formed a supply structure dominated by large groups with relatively concentrated raw materials. With the continuous development of the global rare earth industry, China's share of rare earth production has declined from 90% to 70%, bringing certain benefits to the domestic rare earth market.
Market outlook: Recently, magnetic material enterprises have shown strong enthusiasm for ordering and procurement. The supply-demand dynamics in the light rare earth market remain intense, with strong bullish sentiment prevailing. The praseodymium-neodymium market continues to rise. Furthermore, in the long term, the growth trend in terminal demand from industries such as industrial robots, new energy vehicles, and wind turbines remains unchanged. The penetration rate of high-performance neodymium iron boron permanent magnets in terminal applications is expected to continue increasing. In the short term, amid the stalemate between upstream and downstream negotiations, the light rare earth market is likely to maintain its upward trend.
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