[SMM Rare Earth Morning Briefing] Pr-Nd oxide continued to weaken, evening purchases by major producers boosted confidence, and medium-heavy rare earth followed suit in decline.

SMM, August 6:

Rare Earth Ore:

• Price: Rare earth chloride flake prices stood at around 63,500 yuan/mt, monazite ore prices at around 44,000 yuan/mt, and rare earth carbonate prices at around 59,900 yuan/mt.

• Supply and Demand: Currently, the overall circulation frequency of rare earth ore remains poor, with market trading in a stalemate. The weak oxide prices have caused the actual transaction prices of rare earth ores to shift lower in center.

Rare Earth Oxides:

• Price: Pr-Nd oxide prices remained in the doldrums, with the market trading atmosphere still sluggish; dysprosium oxide and terbium oxide prices fluctuated within a relatively small range.

• Supply and Demand: Yesterday, influenced by wild swings in futures prices, most industry participants maintained a strong wait-and-see sentiment. Factories showed poor willingness to sell or purchase, while some traders continued to offer low-priced cargoes in small quantities. However, in the evening, purchases by large producers boosted some market confidence, and low-priced supplies tightened again. In the medium-heavy rare earth sector, dysprosium oxide and terbium oxide prices also edged down along with the market, but most factories held firm on their quotes, so the declines were relatively small.

Rare Earth Metals:

• Price: Pr-Nd alloy prices continued to weaken, with actual transactions in the doldrums. Dysprosium-iron alloy and terbium metal prices also weakened.

• Supply and Demand: Yesterday, due to the continued pullback in Pr-Nd oxide prices and low inquiry prices in the metal market, some metal suppliers lowered their offers. However, market trading remained stagnant, with actual transactions in the doldrums. In the medium-heavy rare earth market, due to limited inquiry activity, terbium metal and dysprosium-iron alloy prices saw declines to varying degrees.

NdFeB Blanks:

• Price: NdFeB blank N38 (Ce) closed at 211-221 yuan/kg, NdFeB blank 38M at 249-269 yuan/kg, and NdFeB 38UH at 356-376 yuan/kg.

• Supply and Demand: Yesterday, NdFeB blank quotes pulled back slightly, mainly because the decline in raw material prices dragged down NdFeB prices. In terms of trading, from late July to early August, mainstream motor factories entered summer maintenance, and operating rates dropped significantly, leading to reduced demand for NdFeB. Overall market trading was lukewarm.

NdFeB Scrap:

• Price: Prices of Pr-Nd recycled from NdFeB scrap declined, while dysprosium recycled from NdFeB scrap and terbium recycled from NdFeB scrap held steady.

• Supply & Demand: Yesterday, scrap market prices continued to decline, mainly affected by persistently weakening oxide prices. Recycling enterprises correspondingly lowered their external purchase quotations. However, scrap suppliers had a low willingness to sell at low prices, resulting in limited circulation of tax-included scrap in the market and purchasing difficulties for recyclers.