NdFeB Production Drops in July 2026, Expected to Rise in August Amid Optimism

[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 NdFeB industry's total blank production was 32,017 mt, with an average operating rate of 74.9%, down 3% MoM and up 1.5% YoY. August 2026 production is expected to reach 32,864 mt, up 2.65% MoM. Overall, in July, performance varied among producers: top-tier output remained stable, while mid-tier and other enterprises were significantly pulled back due to the impact of downstream operating rates. In August, driven by the downstream rush in September, NdFeB producers are generally optimistic.

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."