Pr-Nd Production Slightly Reduced in November, Yet Prices Continue to Fluctuate Downward [SMM Analysis]  

In November 2024, domestic production of Pr-Nd oxide and Pr-Nd alloy showed a slight decline MoM. The reduction in Pr-Nd oxide production was mainly concentrated in Sichuan and Jiangxi provinces, while the decrease in Pr-Nd alloy production primarily occurred in Sichuan.

According to an SMM survey, environmental protection inspections began in Sichuan in November, leading some rare earth separation and metal processing plants to reduce production or suspend operations. This situation is expected to persist until January next year. Meanwhile, some scrap recycling enterprises are gradually increasing production or resuming operations, resulting in a higher proportion of Pr-Nd oxide production from recycled scrap.

These changes could significantly impact the supply landscape of the rare earth market. Production cuts caused by environmental protection inspections may lead to tight supply of new materials, while increased production from scrap recycling enterprises could partially offset this gap. This supply-demand dynamic warrants close attention from market participants, as it may influence the price trend and supply-demand balance of Pr-Nd oxide in the coming months.

Since entering Q4, Pr-Nd prices have experienced a certain degree of decline due to persistently weak demand, and the industry generally holds a pessimistic outlook.