For the Quarter Ending September 2024
North America
In Q3 2024, the North American Yttrium Metal depend on the Various factors influenced market prices, including stable supply conditions, moderate demand levels, and global economic uncertainties. The correlation between imports from China, played a significant role in price fluctuations, with challenges such as elevated inventory levels and sluggish demand impacting pricing dynamics.
The automotive sector experienced a decline in sales, while the construction industry displayed resilience, indicating diverse demand trends across sectors. Plant shutdowns were not reported during the quarter, contributing to supply stability.
As China is a major producer of rare earths, including Yttrium, the restrictions on rare earth exports implemented on October 1, 2024, have implications for the availability of Yttrium as well. The restrictions increase volatility and prices in the rare earths market, potentially affecting the supply of Yttrium within China. Additionally, the ongoing battle against oversupply due to Chinese production practices could further impact the supply and pricing of Yttrium. The ripple effect on the U.S. technology industry and the broader global implications of these restrictions may shed light on the significance and challenges associated with Yttrium supply from China.
Asia-Pacific
In Q3 2024, Yttrium metal prices in the Chinese spot market remained stable amid challenging market conditions. Stainless steel demand was weak, and construction steel prices hit record lows despite a potential rebound due to anticipated U.S. interest rate cuts. The manufacturing PMI for China indicated continued contraction, although with minor improvements, highlighting persistent weak consumer demand.
China's Ministry of Industry set control quotas for rare earth mining, impacting Yttrium availability and prices. The construction sector displayed signs of recovery, and Yttrium demand is improving, fuelled by growth in high-tech sectors like new energy vehicles and industrial robots, projecting an annual growth rate exceeding 6%. Recent policy measures by the Chinese government aimed to stabilize the market and restore consumer confidence amidst ongoing real estate challenges.
Despite an uptick in rare earth ore imports, which rose 99% month-on-month, the battle against oversupply persists. The quarter recorded a slight decrease of 5% from the previous quarter, ending with prices at USD 28740/MT of Yttrium Metal (99.9%) FOB Shanghai (China), reflecting the overall downward trajectory in pricing for the region.
Europe
In Q3 2024, the European Yttrium Metal faced significant challenges, primarily due to high interest rates and elevated energy costs, which limited their participation in the alloy market. The sector's performance was notably impacted by broader economic pressures in the region. Logistical challenges persisted throughout the quarter, with increased congestion at major European ports including Barcelona, Valencia, Hamburg, and Bremerhaven. Hamburg particularly experienced longer delays compared to other North European hubs, exacerbated by Red Sea disruptions forcing alternative routing. Moreover, understanding the complexities of the rare earths market in China can provide valuable insights into the supply chain dynamics of Yttrium metal specifically within the country and exporting activity. The General Administration of Customs recently published the import and export data for August 2024. According to this data, China's import volume of rare earth metal ores reached 6,864 tons in August, marking a year-on-year increase of 7% and a remarkable month-on-month rise of 99%.
Ocean freight rates showed significant movements, with prices from Asia to Northern Europe decreasing by 17% per FEU, while Asia-Mediterranean prices fell by 10%. These logistics trends influenced overall market dynamics and pricing structures. Global production context showed China leading with 74.9 million pounds, while European consumption remained constrained by market conditions.
