SMM, Jun 17:
As industry regulation policies continue to be implemented, currently compliant scrap is unable to support recycling enterprises in maintaining high operating rates. Market expectations for tighter rare earth raw material supply have intensified, and Pr-Nd oxide has posted three consecutive gains after previously fluctuating downward. Supply side, the rare earth scrap recycling industry has entered a phase of reasonable adjustment in production pace under policy guidance. Feedback from multiple recycling enterprises indicates that industry operating levels are expected to pull back, June-July. Large enterprises, with a higher share of self-mining, will see relatively significant production cuts; small and medium-sized enterprises, with a lower share of self-mining and a larger proportion of processing orders, will experience relatively limited actual production impact.
Pr-Nd Oxide Posts Three Consecutive Gains, Up 2.85% on 17th
According to SMM price assessments: On Jun 17, Pr-Nd oxide was priced at 720,000-725,000 yuan/mt, with an average price of 722,500 yuan/mt, up 20,000 yuan/mt from the previous trading day, an increase of 2.85%.
As market expectations for supply tightness continue to ferment, Pr-Nd oxide began to rise on Jun 15. The average price of Pr-Nd oxide on Jun 17 was 722,500 yuan/mt, compared with the average of 690,500 yuan/mt on Jun 12, an increase of 32,000 yuan/mt, or 4.63%, achieving a three-session winning streak.
Outlook
Expectations for production cuts in the scrap recycling segment have boosted Pr-Nd prices significantly, but cautious sentiment on the downstream procurement side has created a heavy wait-and-see atmosphere in the market. In the short term, market trading remains stagnant. Pr-Nd prices are expected to move sideways in the near term. In the medium and long term, the steady supply pace of compliant scrap will require continuous attention. As a crucial supplement to rare earth raw materials, the circulation volume of compliant recycled materials and the normalized operating rate of recycling enterprises will have a lasting impact on raw material supply elasticity within the industry. Simultaneously, the release pace of demand during traditional peak seasons also needs monitoring. Changes on both the supply-demand sides will influence the medium and long-term price center for Pr-Nd oxide.
Recommended Reading:
