August 11 SMM Rare Earth Afternoon Transaction Comment

[SMM Rare Earth Flash] US rare earth producer MP Materials (NYSE: MP) reported its Q2 2026 results, with Pr-Nd oxide production at 840 mt, up 41% YoY; sales reached 1,006 mt, up 127% YoY, marking the second consecutive quarter with sales exceeding 1,000 mt. The company expects Q3 production to exceed 1,000 mt. In May, the company completed mechanical completion of its heavy rare earth separation line, and plans to start producing dysprosium and terbium within the year. In July, it signed a multi-year supply agreement for gadolinium oxide with a US aerospace and defense manufacturer, with the contract valued at several hundred million dollars. The independent magnet factory in Texas has delivered magnets to General Motors for automotive certification testing, and commercial shipments are expected to start in Q4. Q2 revenue was $108 million, up 89% YoY; net loss narrowed to $20.3 million. The company's cash and short-term investments reached $1.45 billion.

[SMM Rare Earth Daily Review: Stalemate in Upstream-Downstream Tug-of-War Holds Rare Earth Prices Steady] Overall, downstream inquiries have yet to increase significantly, while upstream suppliers maintain a strong intent to hold prices firm. The rare earth market remains in a stalemate of tug-of-war between upstream and downstream, with prices showing no significant fluctuations overall. In the short term, affected by the stagnant market trading, Pr-Nd product prices are expected to maintain a pattern of moving sideways in a narrow range.

[Pr-Nd Series Under Pressure and Weakening, Medium-Heavy Rare Earths Hold Steady, Magnetic Material Scrap Game Continues] Yesterday, affected by fluctuations in futures prices, bearish sentiment continued to spread in the market. The wait-and-see sentiment among downstream metal plants further intensified, with purchase willingness remaining sluggish; most upstream suppliers have stopped offering prices, while some traders were still selling at low prices, putting market transactions under pressure; in the medium-heavy rare earths sector, the markets for dysprosium oxide and terbium oxide saw relatively small changes, with prices remaining relatively stable.