Rare Earth Price Update - May 2025 Shows Diverging Trends Between Light and Heavy Magnet Metals

Highlights

• Light rare earths like Neodymium and Praseodymium show price stabilization, supported by EV and wind turbine sector demand.
• Heavy rare earths face pricing pressure, with Dysprosium and Terbium experiencing volatility amid tight supply and cautious downstream buying.
• China's export controls and increased production by major manufacturers continue to shape the global rare earth market landscape.

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Rare Earth Exchanges (REEx) today reports a snapshot of key rare earth element prices and market dynamics, based on May 2025 benchmarks from Asian Metal and industry sources. Sources include Asian Metal and Shanghai Metals Market.

Light Rare Earths Holding Steady:

• Neodymium is trading at approximately $93.6/kg (¥680/kg), down 17% year-on-year but showing signs of stabilization following pre-Labor Day restocking in China.
• Praseodymium is similarly priced at $94.3/kg (¥685/kg), with modest upward movement on strong magnet sector demand.

Heavy Rare Earths Softening Amid Caution:

• Dysprosium prices eased to $453.9/kg (¥3,300/kg), with oxide falling to ¥1.59–1.61 million/tonne (~$225–230/kg). Despite softening, prices remain 28% above early 2025 levels.
• Terbium declined ~9.7% year-to-date, currently at $1,983/kg (¥14,400/kg). Chinese suppliers are resisting further price cuts, signaling tight supply.

Market Trends:

• LREEs (Nd, Pr) are supported by stable demand from EV and wind turbine manufacturers.
• HREEs (Dy, Tb) face pressure from cautious downstream buying, though supply remains constrained.
• China’s export controls continue to shape the market. Recent curbs apply to some heavy rare earths but exclude Nd and Pr, contributing to price divergence.
• Major producers like Northern Rare Earth are increasing output, helping to ease supply concerns.
• Magnet manufacturers such as JL MAG report strong Q1 growth, underscoring long-term demand fundamentals.

Strategic Outlook

The rare earth market is balanced but fragile. While light magnet metals may have found a price floor, heavy rare earths remain volatile and exposed to geopolitical and supply risks. Strategic sourcing and diversification are essential as global supply chains adapt.

Source: Asian Metal, Shanghai Metals Market, Rare Earth Exchanges analysis.