SMM China Rare Earth Industry Chain Output Data February Review And March Forecast

Pr-Nd alloy

China’s Pr-Nd alloy output in February was 5,126 mt, down 8.9% MoM. Affected by migrant workers returning home for the CNY holidays, Pr-Nd production dropped in various regions, especially in Fujian, Jiangxi, and Shandong, and the operating rates dipped over 15% MoM. Some factories in Sichuan chose to outsource. The operating rates stood low in February. Raw material price rout and limited buying may prevent the operating rates of Pr-Nd alloy plants from picking up in March. SMM will still monitor changes in the operating rates.

Pr-Nd oxide

China’s Pr-Nd oxide production in February was down 2.39% MoM at 5,911 mt, with falling production in Jiangsu, Jiangxi, Guangdong, Guangxi and other regions.

According to SMM research, falling operating rates of some plants during the holidays slightly cut Pr-Nd oxide output in February, but the production will return to normal in March.

In early March, listing prices released by China Northern Rare Earth (Group) High-Tech for March took a nosedive. Pr-Nd oxide spot prices also creped down. Even though long-term contract delivery tightened spot Pr-Nd oxide supply, weak buying appetites for high-priced raw materials made it difficult for rare earth prices to hike.

Dysprosium oxide

China’s dysprosium oxide production in February was 217 mt, down 1% MoM. The dip was mainly reflected in Guangxi where lowering operating rate of separate companies during the holidays curtailed 7.5% of local dysprosium oxide output. Government stockpiling of medium-heavy rare earth after the holidays improved dysprosium oxide prices recently. At the same time, facing financial pressure, rare earth ore holders went to cash. Dysprosium oxide output may hike in March.

Terbium oxide

China’s terbium oxide output in February was down 1.3% MoM at 43 mt, with falling output by 7% in Jiangsu.

According to SMM research, terbium oxide production inched down in February amid fallout of scrap losses and the holidays. Separation plants may resume normal production in March. Government stockpiling and purchases by major manufacturers will promote medium-heavy rare earth prices to pick up.