SMM Rare Earth Afternoon Trading Comment for September 1

【SMM Rare Earth Flash】 The Institute of Mineral Resources, CAGS, reported a rare earth breakthrough in Mianning, Sichuan. Drilling intersected three concealed ore bodies with a combined apparent thickness of ~22.4m, grading up to 6.61% TREO (avg. 3.00%) within a >200m mineralized zone at 413.85m depth. The discovery validates combined TFEM and radiometric surveying under ~114.5m of Quaternary cover, expanding exploration potential in the Mianning-Dechang belt. Further drilling will follow to secure additional resources.

[SMM Rare Earth Daily Review: Rare earth prices consolidate on a strong note; metals struggle to catch up with muted transactions] Overall, the rare earth market was supported by a recovery in Pr-Nd oxide futures and tightening low-priced supply of some medium-heavy rare earth products, with prices consolidating on a strong note. However, downstream follow-through remained cautious, and actual transactions were stagnant. In the near term, as the traditional September-October peak season approaches, downstream magnetic material enterprises' order and production schedule expectations are improving, and Pr-Nd product prices are expected to maintain a drifting higher pattern. Medium-heavy rare earth products, given limited inquiry activity, are likely to continue consolidating on a strong note.

[Oxide offers edge up slightly, while metals and magnetic materials remain stable overall] Yesterday, Pr-Nd oxide offers began to rise from midday, as suppliers held a bullish outlook on the market, held prices firm, and were reluctant to sell at low prices. Downstream purchasing was relatively cautious, and actual transactions were limited. Dysprosium oxide prices moved steadily, with sluggish market inquiries and limited follow-through in actual deals. Terbium oxide prices held steady, with cautious downstream purchasing and a subdued trading atmosphere.