Rare earth prices show regional bifurcation following export restrictions imposed by China

Ex-China prices of heavy rare earth oxides (HREO) are significantly higher than those in the domestic Chinese market following China’s export restrictions.

What is driving this bifurcation?

The European market remains highly constrained for the HREOs currently subject to China’s export restrictions. Spot market activity is sporadic, with buyers only accepting offers when absolutely necessary due to the high prices.

Prices for HREOs continue to demand a significant premium compared to the Chinese domestic market, with Benchmark assessing Dy oxide (CIF Europe) at $800/kg and Tb oxide (CIF Europe) at $3,625/kg.

Month-on-month European HREO prices moved upwards as China’s export restrictions are placing greater demand on ex-China supplies. In China, however, prices held steady in July.

How are light rare earth prices moving?

Prices for light rare earth oxides (LREOs) in China increased month-on-month in July 2025, driven by tight spot supply amidst bullish market sentiment. In mid-July, MP Materials announced a definitive deal with the US Department of Defense, which included a minimum price floor of $110/kg for PrNd. This likely marks a long term dynamic, with the DoD indicating it will make further, similar deals in this space.

Outside of China, PrNd prices tend to track prices in the domestic Chinese market. The North American market responded quickly to price increases in China and the delta between the two prices is primarily due to shipping and handling costs. Meanwhile, Europe has been slower to respond, leading to a PrNd price 5% below China.

What could impact the market in the coming months?

In July, China quietly issued its first rare earth mining and smelting quotas of the year, though has not publicly released what levels these are set at. This low-key approach is part of China’s continued efforts to tightly control its rare earths supply chain.

It is likely that the impacts of this quota will further contribute to a bullish market sentiment over the next few months.

Benchmark is delighted to bring ex-China rare earth price coverage to the market as industry stakeholders scale-up localised production.

European and North American Rare Earth oxide prices are now included in our Rare Earths Price Assessment, published every month along with rolling market commentary on supply/demand dynamics.

Our wider Rare Earths intelligence spans a comprehensive market Forecast and Sustainability Report.

Submit your details below to request more information from our team.