SMM Rare Earth Afternoon Trading Comment on October 22

[SMM Recycled Rare Earth Weekly Review: Scrap Pr-Nd Continues to Pull Back, Overall Market Trading Remains Subdued] Overall, scrap Pr-Nd prices continued to decline this week. Recycling enterprises pushed for lower prices and limited purchase volumes, with quotes adjusted downward for consecutive sessions. Suppliers showed low willingness to sell, and overall market trading remained subdued. In the short term, scrap Pr-Nd prices are expected to consolidate on a weak note. The subsequent trend will still depend on whether the oxide side can stop falling and whether recycling enterprises' purchase willingness recovers.

[SMM Rare Earth Weekly Review: Pr-Nd declines with center moving down; gadolinium falls while holmium rises, showing divergent trends] Gadolinium oxide prices were lowered to 178,000-182,000 yuan/mt, falling in tandem with Pr-Nd and leading the declines. Suppliers' willingness to sell increased while buyers stayed on the sidelines, leaving transactions sluggish. Holmium oxide prices were raised to 660,000-665,000 yuan/mt, with the holmium segment strengthening against the trend and oxides leading the gains. Whether transactions can follow through remains to be seen.

【SMM Rare Earth Flash】On October 21, Chinese Foreign Ministry spokesperson Mao Ning responded to a Financial Times report that Japan's critical rare earth yttrium supplies could run out within months. Mao stated that China's export controls on Japan are implemented in accordance with laws and regulations, aimed at deterring Japan's "remilitarization" and nuclear weapons ambitions. China's position on maintaining the stability and security of global critical mineral supply chains remains unchanged, and all parties have a responsibility to play a constructive role. According to reports, the yttrium shortage has become the biggest pain point for Japanese materials companies, while U.S. defense supply chains rely on Japan-made components containing yttrium. Japan has asked the U.S. to help persuade China to ease export controls, with U.S. and Japanese officials holding multiple consultations recently. At the G7 summit in June, Japanese Prime Minister Sanae Takaichi said China's rare earth export restrictions on Japan could affect supply chains in G7 countries and related nations.