Tight supply and Chinese policy drive prices: Rare Earths Q1 2026 Price Review

Rare earth prices surged through January and February before some grades, particularly magnet materials, softened sharply in March. Over the quarter, Benchmark’s China praseodymium-neodymium (PrNd) oxide assessment rose by ~30%.

In early January, Chinese rare earth oxide prices showed a mixed trend, with light rare earths edging higher on year-end restocking whilst heavy rare earths saw a slight downtick, despite early signs of stabilisation after their recent decline. Later in the month, Chinese rare earth oxide prices rose across all grades, supported by tight mining quotas, higher raw material costs and stronger downstream restocking ahead of CNY. The rally quickly fed through into the European and North American markets, where buyers continued to take direction from Chinese benchmarks.

Throughout February, the rally continued, most notably in heavy rare earths, as export restrictions limited ex-China availability and more aggressive Japanese procurement added further pressure to already tight supply chains.

After the holiday period, rare earth prices remained firm, although trading became more cautious and volatile, with fewer large-volume deals taking place. In China, suppliers remained reluctant to sell aggressively, while raw material availability remained tight.

By mid- to late March, PrNd prices corrected lower as Chinese magnet makers adopted a more cautious stance and buyers resisted levels seen as ahead of near-term fundamentals. This weakness fed through into Europe and North America, where PrNd prices also moved downwards.

Heavy rare earths, however, remained considerably tighter outside China. Dysprosium, terbium and particularly yttrium continued to be shaped by restricted Chinese exports, aggressive Japanese buying and strong aerospace demand for available material.

Overall, Q1 was defined by tight supply, policy-driven uncertainty and strong restocking early in the quarter, before shifting to a more cautious tone as downstream buying slowed and light rare earth prices corrected.

This is the fourth in a series of articles looking at Q1 2026 critical mineral price trends. The rest of the series can be found below:

Volatile, yet robust: Lithium Q1 2026 Price Review

Production quotas control nickel price: Nickel Q1 2026 Price Review

Supply strains keep prices steady: Cobalt Q1 2026 Price Review

Strong demand, strong supply: Anode & Graphite Q1 2026 Price Review