December NdFeB Production Slightly Increased: Will the Future Trend of the Magnet Materials Market Gradually Become Clear? [SMM Analysis]

SMM, January 2: In December 2024, domestic NdFeB magnetic material production increased by approximately 10% MoM. According to SMM's survey, downstream orders did not show significant growth at the beginning of December. However, due to weak end-use demand, downstream markets remained cautious in their purchasing approach, maintaining a strategy of purchasing as needed. The originally planned large-scale stockpiling before the Chinese New Year did not materialize. By mid-December, as raw material prices dropped back slightly, downstream orders increased slightly, and enterprises showed higher enthusiasm for stockpiling, though the overall increase was limited. The orders were mainly concentrated among large leading enterprises with advanced production technologies and stable customer bases. These enterprises maintained high production activity, while small and medium-sized enterprises saw little growth in orders, exhibited low production enthusiasm, and held a pessimistic outlook on the market.

Although top-tier enterprises experienced an increase in orders, the overall order prices were not ideal. Based on the benchmark price of Pr-Nd alloy, the prices were far below the market average, significantly compressing the profits of magnetic material enterprises. As a result, enterprises remained cautious about market trends, and overall market sentiment was poor.

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According to SMM's survey, most magnetic material enterprises plan to gradually halt production and take holidays around January 20. Production during the Chinese New Year is expected to decline significantly and will only gradually recover after the holiday. NdFeB magnetic material production in January is expected to decrease substantially, with most enterprises unlikely to resume normal production levels until mid-February.