SMM Rare Earth Afternoon Trading Comment on August 26

China's NdFeB magnet demand fell in July as output across key sectors—NEVs, air conditioners, and washing machines—slowed due to seasonal weakness, extreme weather, and inventory drawdowns. August is shaping up as a transition month with only modest export improvements. Consequently, the traditional "Golden September, Silver October" peak season is likely delayed. Long-term demand fundamentals, however, remain unchanged.

[SMM Rare Earth News Flash] Australian rare earth producer Lynas released its FY2026 results on August 26. Benefiting from higher rare earth prices and an increased share of heavy rare earth sales, full-year revenue reached $977.9 million, with net profit surging to $222.4 million from $8 million in the same period last year. The company's total rare earth oxide (REO) sales increased 11% YoY to 12,122 mt, with the average selling price rising to $80.7/kg from $55/kg in the previous year. Among them, Pr-Nd sales grew 12% to 7,337 mt. The CIF Europe price of neodymium oxide increased 73% YoY to $121/kg, and terbium oxide price increased 58% YoY to $4,500/kg. The company's heavy rare earth expansion project at its Kuantan plant in Malaysia saw its cost expectations raised from A$180 million to A$294 million, mainly due to higher client purity requirements and rising overseas equipment procurement costs. In March this year, Lynas achieved commercial production of samarium oxide for the first time at its Kuantan plant, further expanding its heavy rare earth product line.

[SMM Rare Earth News] Xiamen Tungsten Co., Ltd. (600549) released its 2026 semi-annual report on August 20, with H1 revenue reaching 35.014 billion yuan, up 81.70% YoY; net profit attributable to the parent was 2.201 billion yuan, up 127.04% YoY. All three core businesses of tungsten-molybdenum, rare earth, and energy new materials posted double growth in revenue and profit. The rare earth business performed strongly: revenue for the reporting period was 4.355 billion yuan, up 51.50% YoY; total profit reached 145 million yuan, up 101.41% YoY. Key deep-processed product magnetic materials actively expanded markets outside China, achieving growth in new energy vehicles, energy-saving home appliances, electric motors, and other sectors, with H1 sales of 6,706 mt, up 29% YoY. On rare earth resources, the company holds stakes in Zhongxi Xiamen Tungsten to jointly develop Fujian's rare earth resources and cooperated with China Rare Earth Group and China Northern Rare Earth in the construction and operation of rare earth smelting and separation. On key projects, both the 1,400 mt nanoscale rare earth oxide production line and the 5,000 mt high-performance rare earth permanent magnets capacity expansion project for energy-saving motors have been gradually put into production.