Financial Association News, October 9 (Reporter Wang Bin) The traditional busy season of "Golden September and Silver October" has arrived, and the rare earth market continues to heat up. Following the consecutive "high-hanging" of the rare earth product listing prices by china northern rare earth (600111.SH) in September and October, inner mongolia baotou steel union (600010.SH) also announced an increase in the trading prices of rare earth concentrate for the fourth quarter of this year.

It is worth noting that this is the first time this year that inner mongolia baotou steel union has raised the trading prices of rare earth concentrate.

Tonight, inner mongolia baotou steel union issued an announcement. According to the pricing method and price adjustment mechanism agreed upon with china northern rare earth, the company plans to adjust the related party trading price of the fourth quarter of 2024 for rare earth concentrate to tax-excluded 17782 yuan per ton.

The price of this product in the third quarter was 16741 yuan per ton. Based on this calculation, the related party trading price of rare earth concentrate between inner mongolia baotou steel union and china northern rare earth in Q4 increased by 1041 yuan per ton compared to Q3, with a 6.22% increase. An industry insider who preferred to remain anonymous told Financial Association News that due to the rise in prices of praseodymium and neodymium oxide in the third quarter, the industry expected an increase in the prices of rare earth concentrate for the fourth quarter of inner mongolia baotou steel union. 'The increase in the price of rare earth concentrate by inner mongolia baotou steel union is significant as it helps to strengthen industry confidence.'

'Starting from July, downstream orders have started to recover, and the price of praseodymium and neodymium oxide has begun to rise, driving the upward trend of the price cycle, leading to an increase in the price of rare earth raw materials. Previously, we predicted that the trading price of rare earth concentrate in the fourth quarter would increase by around 1000 yuan, equivalent to an increase of 0.014 to 0.015 million yuan in praseodymium and neodymium oxide prices. Now it seems to be in line with expectations.' Shanghai Nonferrous Network (SMM) rare earth analyst Yang Jiawen told Financial Association News.

In the first three quarters of this year, the trading prices of rare earth concentrate for inner mongolia baotou steel union were 20737 yuan/ton, 16792 yuan/ton, and 16741 yuan/ton, respectively. It can be seen that the trading prices of rare earth concentrate between inner mongolia baotou steel union and china northern rare earth have slightly increased in Q1 of this year, significantly decreased in Q2, slightly decreased in Q3, and started to rise in Q4.

According to the data from the China Rare Earth Industry Association, after experiencing a fluctuation and decline in the first half of this year, the price index rose to 179.9 points on October 9, an increase of 17.33% from the lowest point of 153.33 on March 19. As for the spot prices, on October 9, the average price of praseodymium and neodymium oxide was 0.436 million yuan/ton, unchanged from the previous trading day.

Yang Jiawen said that the current rare earth market is mainly driven by rigid demand procurement to replenish inventory, but the traditional "silver ten" effect still exists. In addition, the cost support brought by the quarter-on-quarter rise in rare earth concentrate prices of China Northern Rare Earth and Inner Mongolia Baotou Steel Union in the fourth quarter is widely believed in the industry that rare earth prices in October are still expected to rise.