The rare earth index has risen sharply recently. On Dec 15, the rare earth index was 362 points, which rose by 5 points after the sharp rise on the 3rd. China's rare earth market is naturally also ushering in an upward trend. According to the Dec 15 quotation, the price of China's light rare earth praseodymium and neodymium series has risen, and the upward range of prices can basically be explained by the "supply of rare earths".

When it comes to the downstream processing products of rare earths, permanent magnetic materials should do our part. Permanent magnetic materials can be divided into three major categories: rare earth, ferrite and other. These permanent magnetic materials are widely used in various fields such as automobiles, home appliances, energy, machinery, medical treatment, and aerospace. Among them, the new energy automobile industry can be regarded as a relatively new terminal market. Among them, NdFeB are the most widely used permanent magnetic material, and NdFeB is also the largest downstream market for light rare earths.

With the stabilization of the epidemic, the demand in China's various end markets has recovered to a normal level, and the rise of various emerging industries has seen rising demand for rare earths, the "industrial MSG", which can basically be explained as the main reason for the recent increase in rare earth prices. In addition, the strong demand from other countries is also an important factor.

This has caused magnetic material manufacturers to purchase raw materials more cautiously, and at the same time control the production capacity of their factories. Manufacturers' current quotations are valid for a short period of time, generally no more than 7 days. The factory will purchase raw materials only after signing the contract and receiving the deposit. Buyers are under pressure to increase prices.