SMM August 21 news: Pr-Nd alloy prices fell first and then rebounded this week, remaining in the doldrums at the beginning of the week before stopping falling and rebounding near the weekend. As of 17:00 on Friday, Pr-Nd alloy settled at 880,000 yuan/mt, up 10,000 yuan/mt from Thursday afternoon, flat from Friday morning. Today, driven by a sharp rise in Pr-Nd oxide prices, Pr-Nd alloy stopped falling and rebounded. This was mainly because a major manufacturer purchased Pr-Nd oxide yesterday, rapidly tightening low-priced supply in the market. Suppliers raised their quotes one after another, and alloy enterprises followed suit with higher quotes supported by oxide costs, making it difficult to find low-priced goods. However, afternoon market inquiry activity declined versus yesterday, with downstream magnetic material enterprises being relatively cautious in procurement, and actual transaction follow-through limited.
Reviewing the weekly trend, Pr-Nd alloy prices showed a pattern of "falling first and then rebounding" this week: prices moved steadily at the beginning, weakened slightly from Tuesday as Pr-Nd oxide prices pulled back, hit a weekly low of 870,000 yuan/mt on Thursday, and rebounded strongly on Friday, driven by the major manufacturer's purchase of Pr-Nd oxide, with a single-day increase of 10,000 yuan/mt. As of 17:00 on Friday, Pr-Nd alloy settled at 880,000 yuan/mt, up 5,000 yuan/mt from last Friday (875,000 yuan/mt), up 0.57% WoW. This halted the downward trend of the previous consecutive weeks, turning a decline into an increase.
From the cost side, the cash cost of Pr-Nd alloy this week fell by about 1,655 yuan/mt WoW, a decrease of about 0.19%, continuing to ease cost pressure. Based on Friday's settlement price, the net profit per mt was about 6,700 yuan/mt, significantly wider than the previous week, with profitability continuing to improve. During the week, downstream magnetic material enterprises remained cautious in inquiries and procurement, with sluggish market trading. In the mid-week, raw material prices were in the doldrums, and some traders sold at low prices. Although alloy enterprises also lowered their quotes, they showed strong willingness to hold prices firm, resulting in a narrower actual decline. Near the weekend, raw material prices stopped falling and rebounded, and alloy enterprise quotes rose accordingly. Low-priced goods became scarce in the market, and trading activity recovered somewhat.
In the short term, on the demand side, terminal motor enterprises' "summer shutdown" is ending one after another, coupled with the approaching traditional September-October peak season, top-tier magnetic material enterprises' production schedule expectations are positive. The market holds strong expectations for downstream restocking and stockpiling, but attention should be paid to whether the peak season demand expectations will materialize, as well as the release pace of new Pr-Nd oxide capacity on the cost side. Pr-Nd alloy prices are expected to move sideways with a tendency to drift higher.
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