<article><p class="lead">Chinese praseodymium-neodymium prices started to fall back over the past two days, pressured by a rise in spot availability, following recent consecutive rises in spot prices. The fall was also triggered by a 25 November announcement by major light rare earths producer Northern Rare Earth of plans to increase spot supplies to prevent prices from rising much.</p><p>Northern Rare Earth has decided to sell 100t of 99pc praseodymium-neodymium metal this week to downstream magnetic material plants, which have opened accounts on China's <a href="https://direct.argusmedia.com/newsandanalysis/article/2048827">Baotou rare earth products exchange</a> (Repe), aiming to relieve spot supply tightness and ease the surge in domestic spot prices.</p><p>The exchange, which was approved by the government of the Inner Mongolia autonomous region in May 2011, is the first spot electronic trade exchange for rare earths in China. It has combined spot trading, storage, quality control, logistics and financing into the platform, with over 100 enterprises establishing Repe accounts.</p><p>Only 10t of the material was transacted on the exchange at 550,000 yuan/t ($83.60/kg) yesterday as most buyers were reluctant to restock material at such high prices, opting to observe further market developments. Suppliers that previously lifted offers to as high as Yn580,000/t had to lower prices to about Yn560,000/t to boost orders. </p><p>Suppliers reduced prices for praseodymium-neodymium oxide in line with weaker demand from metal processing plants. More consumers scaled back oxide feedstock purchases on concerns about a further decline in spot prices for praseodymium-neodymium metal in the coming days, in turn weighing on upstream oxide prices.</p><p><i>Argus</i> assessed the range for 99pc praseodymium-neodymium oxide at Yn430,000-440,000/t ex-works today, down from Yn440,000-450,000/t ex-works on 26 November because of weaker spot demand. Prices for 99pc praseodymium-neodymium metal fell to Yn545,000-555,000/t ex-works today from Yn550,000-560,000t ex-works on 26 November, in response to increased spot supplies and lower feedstock costs.</p><p>Domestic spot prices are unlikely to drop much as rapid growth in downstream magnet output and sales is exceeding rare earth feedstock supplies following the quick recovery in China's economic growth from the Covid-19 pandemic, according to market participants. More metal processing plants have stopped quoting prices for new deals as their production has been fully booked until early 2021.</p></article>
