[Stalemate Between Upstream and Downstream Persists, Metal Transactions Are Weak, and Magnetic Materials Enter High-Temperature Off-Season] Yesterday, NdFeB blank quotes were slightly lowered, primarily because raw material prices drove down NdFeB prices. In terms of transactions, as July drew to a close, regions across China experienced high temperatures, and motor factories and end-users gradually began their high-temperature holidays. The operating rates of motor factories and end-users weakened significantly, reducing demand for rare earth permanent magnets, which ultimately led to persistently sluggish trading activity in the NdFeB market.

[SMM Rare Earth Flash] According to the SMM survey, in July 2026, the industry-wide blank production of NdFeB was 32,017 mt, with an average operating rate of 74.9%, down 3% MoM and up 1.5% YoY. Production in August 2026 is expected to be 32,864 mt, up 2.65% MoM. Overall, in July, producers showed varied output performance, with top-tier producers' output remaining stable, while mid-tier and other enterprises experienced a notable pullback due to the impact of downstream operating rates. In August, driven by downstream customers' rush to boost output in September, NdFeB producers generally hold an optimistic attitude.

On July 28, China Rare Earth Group held its 2026 mid-year science and technology work meeting at headquarters, systematically summarizing H1 scientific and technological innovation work and comprehensively deploying key tasks for H2. The meeting noted that the Group's scientific and technological innovation work made steady progress in H1, closely focused on the core mission of serving national strategic security, and achieved positive progress in areas such as research system construction, key technology breakthroughs, innovation platform establishment, and key project layout. The innovation landscape shifted from "a single flower blooming" to "a hundred flowers in full bloom."