From the trend chart, it can be seen that the price of domestic rare earth products has stopped falling and recovered, most of the prices of rare earth products are weak, and the prices of Heavy Rare Earth Terbium series and dysprosium series are rising. As of May 24, the price of dysprosium oxide was 2.375 million yuan / ton; The price of dysprosium ferroalloy was 2.355 million yuan / ton, and that of dysprosium metal was 3.225 million yuan / ton. The domestic price of terbium series rose. On the 24th, the domestic price of terbium oxide was 6.5 million yuan / ton, and that of metal terbium was 8.05 million yuan / ton.

The main reason for the price of domestic heavy rare earth market to stop falling and recover is that the contradiction between supply and demand has been eased.

On the supply side: the situation in Myanmar remains the same. The global supply of rare earth is relatively concentrated, and Myanmar is one of the production areas next only to China and the United States. Myanmar has a great influence on the domestic heavy rare earth market products. The import source has decreased significantly. The sharp contradiction between supply and demand in the domestic heavy rare earth market has led to the continuous rise of heavy rare earth prices. In addition, the domestic production of heavy rare earth is normal, so it can be said that the domestic demand for heavy rare earth is weak. The domestic rare earth purchase and storage plan is a good support for the domestic price of heavy rare earth. In the purchase and storage plan, medium and heavy rare earth accounts for a large proportion of the annual output. Recently, the domestic market supply of heavy rare earth is still tight, and the price of heavy rare earth is supported to a certain extent, and the market price rebounds slightly.

Demand: the downstream demand is relatively normal, and the demand for new energy vehicles is still high. The main rare earth raw materials of high performance NdFeB are light rare earth praseodymium neodymium oxide, heavy rare earth dysprosium oxide and terbium oxide, which are used in new energy vehicles, wind power, energy-saving frequency conversion air conditioning, traditional vehicles and other fields. According to statistics, new energy vehicles continue to break the historical record of single month sales. According to the data released by the China Automobile Industry Association, the national automobile industry continued to maintain a good development trend in April, with the production and sales of 2.234 million and 2.252 million vehicles respectively, down 9.3% and 10.8% on a month on month basis, and up 6.3% and 8.6% on a year-on-year basis; The overall performance of new energy vehicle production and sales is still better than that of the industry, with monthly production and sales of more than 200000 vehicles. The downstream demand is fair, the demand gap of heavy rare earth has always existed, and the market price of medium and heavy rare earth has stopped falling and recovered.

According to the monitoring of the business society, the price index of the domestic rare earth market rose slightly. According to the rare earth plate index of the business society, the rare earth index on May 24 was 489 points, up 2 points from yesterday, down 51.10% from the highest point of 1000 points in the cycle (2011-12-06), and up 80.44% from the lowest point of 271 points on September 13, 2015（ Note: period refers to the period from December 1, 2011 to now).

The domestic rare earth index began to fall in mid March, and the domestic light rare earth market price is still at a low level recently. Domestic sales of new energy vehicles have increased, and terminal industries such as wind power and electronic products have developed rapidly. As the epidemic situation slows down, downstream manufacturers’ capacity utilization rate continues, and demand is mainly based on demand procurement. The demand for NdFeB is still high. The high prosperity of new energy vehicles and consumer electronics industry has also boosted the price of heavy rare earths to rise slightly. According to the data, the global demand for high-performance NdFeB is mainly concentrated in the automotive sector (nearly 40% for traditional vehicles and 12% for new energy vehicles), while the rest, such as wind power, consumer electronics, variable frequency air conditioning and energy-saving electrical appliances, account for 8% – 10%. The downstream demand remains high, but in the early stage, the manufacturers are actively preparing goods, and the on-site inventory increases, which leads to the downstream procurement is not active, and the market price of light rare earth remains low.

In 2021, the first batch of rare earth mining, smelting and separation total amount control indicators increased significantly, which was related to the strong downstream demand. The Ministry of natural resources issued the total amount control indicators of rare earth mining in 2021. In 2021, the total amount control indicators of the first batch of rare earth mines (rare earth oxide REO, the same below) in China were 84000 tons, including 11490 tons of ionic (mainly medium and heavy rare earth) rare earth mines, The index of rock ore type (light) rare earth ore is 72510 tons. The first batch of tungsten concentrate (tungsten trioxide content 65%, the same below) has a total mining control index of 63000 tons, of which the main mining index is 46890 tons and the comprehensive utilization index is 16110 tons. In 2021, we will continue to control the total amount of rare earth and tungsten mining, which is conducive to the green development of the domestic rare earth industry.

As the heat of new energy vehicles, wind power and variable frequency air conditioning in the downstream of Rare Earth continues to grow, it is expected to drive demand growth. The global supply gap of rare earth is expected to continue to expand. The domestic demand for rare earth remains at a high level, and the domestic supply of rare earth starts to work normally. However, the recent on-site transaction is poor and the procurement is not active, Chen Ling, an analyst at business news agency, predicts that the market price of rare earth in the later period may remain low in the short term, while the market price of dysprosium series may rise.