Second quarter price increase of 45%! Rare earth concentrate prices have risen for seven consecutive times, and the rare earth sector has surged.

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The price of China’s rare earth concentrate has been increased for the seventh consecutive quarter, with the highest growth rate since the current pricing mechanism was established, pushing rare earth stocks sharply higher.

Baotou Steel Co. and Northern Rare Earth announced on April 10 that the second quarter 2026 rare earth concentrate related transaction price will be set at RMB 38,804/ton (dry basis, REO=50%, excluding tax), up approximately 45% from the first quarter, setting a new record for both price and growth since the unified pricing mechanism was established in April 2023.

Boosted by this, several rare earth stocks surged. Inner Mongolia Baotou Steel Co. rose more than 8.5% during trading, Northern Rare Earth rose as much as 3.1%, and China Rare Earth Resource Technology was up about 2.5%.

This price increase comes amid continued changes in the global rare earth supply chain structure. For the market, this quarterly pricing signal reflects the reality of tight supply, and also signifies that earnings expectations for related listed companies may be further revised.

Price and Growth Both Set New Records

According to announcements by the two companies, the second quarter rare earth concentrate transaction price is RMB 38,804/ton, with a quarter-on-quarter rise of 44.61%, both exceeding previous highs—the second quarter of 2023’s RMB 31,030/ton and the increase at that time. This is also the seventh consecutive quarterly increase since the unified pricing mechanism started on April 1, 2023.

Data compiled by media from company announcements shows that the growth this time is also the largest single-quarter jump since the rare earth pricing mechanism reform in 2023.

Both companies calculate prices according to a set formula: for every 1% increase or decrease in REO content, the tax-free price for Baotou Steel Co. increases or decreases by RMB 766.08/ton, and for Northern Rare Earth by RMB 776.08/ton.

Pricing Mechanism and Supply Structure

The current pricing mechanism dates back to April 2023. Northern Rare Earth and its affiliate Baotou Steel Co. signed an agreement, stipulating that from April 1 of that year, in the first week of each quarter, the rare earth concentrate price would be calculated and adjusted based on the previous quarter’s rare earth oxide market price using a set formula, and then supply contracts or supplementary agreements would be signed and announced.

In terms of supply structure, Baotou Steel Co. disclosed that its Baiyunebo Mine has rare earth reserves equivalent to about 35 million tons of oxide, accounting for 81% of domestic rare earth reserves; Northern Rare Earth is the sole purchaser of Baotou Steel Co.’s rare earth concentrate products, so the transaction pricing between the two serves as an important reference benchmark for China’s rare earth concentrate market.

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