In July, the price of Pr-Nd alloy continued to rise, climbing from an average price of 545,000 yuan/mt on July 3 to 635,000 yuan/mt on July 28, representing a monthly increase of over 16% and marking the highest annual increase since 2011.

[SMM Rare Earth Daily Review: Pr-Nd Prices Surge Rapidly Amid Stalemate in Market Transactions] Currently, rare earth market prices have risen significantly, primarily in the light rare earth sector. Due to supply reductions from Southeast Asian mines affected by the rainy season and production cuts at some separation plants resulting from environmental protection checks, Pr-Nd oxide supply has tightened. Concurrently, market sentiment continues to intensify. Bullish sentiment in the oxide market has surged, with suppliers showing strong reluctance to budge on prices and raising quotations across the board. Low-priced supplies in the market quickly diminished, driving oxide prices upward rapidly.

[SMM Rare Earth Morning Meeting Summary: The center of rare earth upstream trading volume rises, while the downstream market continues to wait and see] Last week, the enthusiasm for downstream inquiries significantly increased. The center of dysprosium oxide and Pr-Nd oxide trading volume slightly moved up, and the supply of low-priced goods tightened. However, metal factories had no strong intention to stock up, and the overall trading volume did not see a significant increase. Some industry players still maintained a wait-and-see attitude towards the future market of rare earths.

At the beginning of June, driven by policy news, upstream suppliers significantly raised their quotes for Pr-Nd products.

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Although the China-U.S. dialogue in London sent a signal of easing tensions in rare earth magnetic material trade, the current situation in the industry is still marked by a contraction in short-term orders and a strong wait-and-see sentiment in the market. In the long run, Chinese magnetic material enterprises are leveraging this momentum to accelerate their transformation towards high-end and green development, with technological breakthroughs and supply chain restructuring becoming key bargaining chips for restarting cooperation in the future.

Recently, China Northern Rare Earth's joint venture moves in the magnet sector have attracted industry attention: the company has partnered with Ningbo Zhaobao, Suzhou Tongrun Drive, and Ningbo Xici to establish Northern Zhaobao Magnetics, advancing the implementation of a 3,000 mt/year high-performance NdFeB project. This seemingly independent set of moves actually reveals a fundamental shift in the underlying logic of the high-performance NdFeB industry's development—vertical integration and horizontal collaboration within the industry chain are becoming the core engines for technological breakthroughs and market competition.