Rare Earth Oxide Production Declines in April, Scrap Recycling Disruptions Impact Supply

SMM April 30: In April, rare earth oxide production showed a slight overall decline, with all major products seeing varying degrees of MoM reduction. Supply-side disruptions became one of the market's key focal points for the month.

Pr-Nd oxide side, April production contracted approximately 3% MoM. The decline mainly came from the scrap recycling segment, where combined effects of equipment maintenance and insufficient raw material inventory led to a notable reduction in recycled Pr-Nd oxide output. Meanwhile, some raw ore separation enterprises also halted production, further tightening the supply side. The simultaneous contraction in both raw ore and recycling segments resulted in a relatively significant MoM decline in Pr-Nd oxide supply for the month.

Medium-heavy rare earth oxide side, April production also showed a slight MoM decline. Ion-adsorption ore separation enterprises maintained relatively stable overall operations with no significant fluctuations in production pace, but production cuts at scrap recycling enterprises dragged down the overall output level of medium-heavy rare earth oxides. As scrap recycling accounts for a considerable share in the medium-heavy rare earth supply system, production cuts in this segment directly weighed on total monthly production, leading to a slight MoM decline in medium-heavy rare earth oxide output.

Overall, whether for light rare earth Pr-Nd oxide or medium-heavy rare earth oxides, the core reason for April's production downward revision pointed to contraction in the scrap recycling segment. Equipment maintenance and insufficient raw material supply were the main constraining factors, while production halts at raw ore separation enterprises amplified the supply pressure on Pr-Nd oxide.