Highlights

• China Northern Rare Earth started daily 100-metric-ton PrNd alloy auctions on the Baotou Rare Earth Products Exchange.
• Auction prices escalated from initial bids to 572,000 yuan/mt, triggering the transaction ceiling within three days.
• The auctions suggest tightening supply and strong demand from the EV and wind energy sectors.

China Northern Rare Earth has sparked a flurry of market activity with its ongoing daily auctions of 100 metric tons of Praseodymium-Neodymium (Pr-Nd) alloy on the Baotou Rare Earth Products Exchange, beginning July 15. According to Shanghai Metals Market (SMM), prices have climbed steadily with each auction, underscoring tightening supply, strong magnet demand, and potential speculative momentum.

• July 15: Initial sale prices were slightly above the starting bids.
• July 16: Prices escalated to 567,500 and 568,000 yuan/mt.
• July 17: Bids reached the designated “alarm price” of 572,000 yuan/mt, triggering the transaction ceiling.

Notably, the auction close times have advanced each day, with bidding concluding earlier on the 16th and 17th compared to the 15th, suggesting increasingly aggressive participation and a high sense of urgency among buyers.

This sharp uptick in PrNd alloy pricing could have broad implications for permanent magnet manufacturers and rare earth supply contracts globally. With downstream demand from the EV and wind energy sectors continuing to grow, investors and policymakers should monitor these short-term auction results for clues to potential pricing pressure and inventory constraints heading into Q4.

Rare Earth Exchanges™ will continue to track these developments, including whether further auctions trigger additional “alarm price” ceilings or indicate speculative hoarding behavior.

Source: Shanghai Metals Market, July 17, 2025

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