Highlights

• Shanghai Metals Market reports continued sharp decline in rare earth metal prices, particularly Pr-Nd alloys.
• Market characterized by weak demand, high inventory levels, and active supplier discounting.
• Lack of transparency in China's rare earth sector raises concerns about potential price manipulation.

Shanghai Metals Market (SMM) reported (opens in a new tab) this week that rare earth metal prices, particularly for praseodymium-neodymium (Pr-Nd) alloys, continue to decline sharply amid persistent market inactivity. According to SMM's April 24th Morning Summary, falling prices for Pr-Nd oxide, dysprosium, and terbium have been met with weak demand from magnetic material manufacturers and a downstream sector burdened with high inventory levels and poor order flow. SMM describes a market environment characterized by active discounting from suppliers and "wait-and-see" behavior among buyers. However, the consistent price drops, paired with a notable lack of transparent trading data and minimal independent third-party verification in China's rare earth sector, raise legitimate concerns about potential price manipulation or coordinated market suppression.

Critically, rare earth pricing in China remains notoriously opaque, with SMM and similar outlets often reporting quotations sourced from undisclosed market participants rather than actual transacted volumes. This structure, combined with China's dominant global position in rare earth production and refining, provides ample room for engineered price pressures—whether to flush out weaker players, prepare for inventory stockpiling, or influence global markets ahead of trade negotiations.

While the SMM report paints a picture of natural market weakness, Rare Earth Exchanges urges stakeholders to treat such reports with caution, demanding greater transparency, third-party audits, and scrutiny into the underlying drivers of rare earth market behavior inside China.