According to the latest data from the China Rare Earth Industry Association, the rare earth price index reached 158.3 points in the first quarter of 2026, marking a year-on-year increase of 15.2% and a quarter-on-quarter rise of 4.8%. The rare earth market overall demonstrates robust growth with strong supply and demand.

Major Rare Earth Product Price Trends

The average market price for praseodymium-neodymium oxide was 45.2 ten thousand yuan per ton, a year-over-year increase of 18.5%; the average price for dysprosium metal was 2680 yuan per kilogram, up 12.3% year-over-year; and the average price for terbium oxide was 6850 yuan per kilogram, up 21.7% year-over-year.

Analysis indicates that the price increase in this round was driven primarily by the following factors:

• Growing downstream demand:Demand for high-performance NdFeB magnets remains surging in sectors like new energy vehicles (NEVs), wind power, and variable-frequency air conditioners. In Q2026, NEV production rose 35% year-over-year, driving a significant increase in upstream magnet demand.
• Supply-side tightening:The growth rate of total rare earth mining quotas has slowed. The first batch of rare earth mining quotas in 2026 grew by only 8% year-over-year, falling short of the downstream demand growth rate.
• Cost Support:Increased environmental spending at rare earth mines and rising labor costs have pushed up production expenses, providing support for prices.

High market demand in the neodymium-iron-boron sector

As the most critical downstream application of rare earths, the neodymium iron boron (NdFeB) permanent magnet sector continues to gain momentum. According to statistics, in Q2026, China's NdFeB crude output reached 12.5 million tons, a year-over-year increase of 28%.

High demand for high-performance NdFeB products has left major manufacturers with full order books; some leading companies are booked through the end of Q2. Pricing: The average price for N35 grade NdFeB blanks is 145 CNY/kg, up 15% year-over-year; N52 grade averages 185 CNY/kg, up 18% year-over-year.

Market Outlook

An analyst from the China Rare Earth Industry Association forecasts that the rare earth market will remain strong in the second quarter. On one hand, sustained high growth in downstream sectors such as new energy vehicles and wind power will continue to drive demand for rare earth magnets. On the other hand, limited supply growth means the tight balance between supply and demand is unlikely to change.

However, the following risk factors also need to be monitored: (1) macroeconomic volatility may affect downstream demand; (2) rapid increases in rare earth prices could dampen certain demand; and (3) the startup of overseas rare earth projects may increase supply.