SMM Analysis Of Light Rare Earths In July And Forecast For August

In July 2024, domestic Pr-Nd oxide production was 7,550 mt, up 3% MoM. The decline was mainly reflected in the Hunan and Fujian regions.

According to SMM statistics, the separation plants scheduled to resume production in July have postponed their restart. However, downstream rare earth magnetic material orders improved relatively in July, and rare earth prices also rebounded, leading to an increase in the operating rate of some separation plants. According to some industry insiders, with the continued reduction in rare earth ore imports from the US, the operating rate of local separation plants in Sichuan is expected to start decreasing this month. It is anticipated that Pr-Nd oxide production in Sichuan will decrease MoM in August.

In July 2024, domestic Pr-Nd alloy production was 5,892 mt, down 1.7% MoM.

The rare earth market experienced significant price fluctuations due to news impacts, with insufficient actual transactions in the Pr-Nd alloy market. Some factories saw an accumulation of metal inventory, while rising ore prices led to a decrease in the circulation of low-priced oxides. Metal raw material restocking was hindered, and hot weather caused a reduction in factory operating rate in some regions. Based on current market transactions, downstream magnet material operating rate slightly improved in July, indicating actual demand for metal restocking. However, due to high rare earth prices, magnet material producers remained cautious. It is expected that with the gradual arrival of the peak season, demand for magnet materials will gradually increase, and Pr-Nd alloy supply will recover in August.