The performance of the USA Cerium Metal market in August was marked by a slight decrease in prices due to an uptick in supply and a decrease in demand. Meanwhile, the China Cerium Metal market also saw a decrease in prices despite increased production.

The USA Cerium Metal market in August presented a complex scenario, characterized by an increase in supply juxtaposed against a notable decrease in demand, resulting in marginal price decreases during the week. On the supply side for Cerium Metal, several key developments have reshaped market dynamics. A critical minerals supply cooperation agreement between the U.S. and Argentina has been signed, aiming to bolster trade and investment in critical mineral exploration, extraction, processing, and refining. This strategic move positions the United States as a significant player in the critical minerals sector, potentially reducing dependence on Chinese imports and stabilizing long-term supply chains for Cerium Metal. Domestically, finished goods inventories have increased for the second consecutive month, indicating a cautious approach by suppliers who are utilizing excess capacity to replenish stocks in response to reduced client demand. However, the demand side for Cerium Metal is facing significant challenges. Key consuming sectors, particularly construction and automotive, are experiencing downturns. The Associated Builders and Contractors (ABC) construction confidence index showed declines in critical areas, with profit margins falling below the neutral threshold. The automotive sector mirrored this trend, with U.S. major automakers reporting decreased sales during August.

The China Cerium Metal market in August presented a complex landscape, characterized by increased production, and softening demand, yet faced with declining prices. This paradoxical situation reflects the intricate interplay of domestic and international factors shaping the rare earth metal industry. On the supply side, the market witnessed a significant boost for Cerium Metal. The Ministry of Industry and Information Technology (MIIT) and the Ministry of Natural Resources set higher control quotas for rare earth mining and smelting for the second half of 2024, indicating a 6% year-on-year increase in the mining quota. This expansion in production capacity was further evidenced by Baotou's impressive rise in industrial value added from the rare earth sector during the first half of 2024. Demand, however, told a different story for Cerium Metal. The market entered its traditional off-season, compounded by challenges in key consuming sectors. The construction industry, grappling with a stagnant property market, saw a decrease in demand for Cerium Metal. Similarly, the automotive sector, a major consumer of Cerium Metal, experienced declines in sales volumes in July. Export volumes also decreased, affected by seasonal factors in Southeast Asia. The manufacturing sector's reduced demand was reflected in contracting market activity indices, with both sales and input prices showing downward trends. While some industries like air transport and telecommunications-maintained optimism, this positive outlook had yet to translate into increased product demand.  

As per ChemAnalyst, In US High production rate among the enterprises and low operating cost for Cerium Metal may decline the price. Meanwhile in China low demand from downstream automobile sector for Cerium Metal may force the producers to decline the price trend for the domestic market.