Last week, new developments occurred in the overseas rare earth sector, with Vietnam further strengthening state control over rare earths and enhancing the management of strategic resources, while the United States and the United Kingdom readjusted their rare earth strategies and established rare earth supply chains.

[SMM Rare Earth Weekly Review: Rare Earth Prices Continue to Decline Amid Sluggish Market Trading] The price of Pr-Nd oxide has recently taken a sharp downturn. Following the holiday, factors influencing the rare earth market have significantly strengthened their impact on prices. Many suppliers have reduced their confidence in future rare earth prices, leading them to proactively lower prices to sell. As of now, the price of Pr-Nd oxide has dropped to 513,000-520,000 yuan/mt.

According to the latest SMM survey data, China's NdFeB magnetic material production in September 2025 was 29,106 mt, down 1.66% MoM. The overall industry operating rate was 68.1%, down 4.14 percentage points MoM. More critically, production in October is expected to further decline to 27,648 mt, down approximately 5% MoM, reflecting the multiple pressures currently facing the magnetic material industry.

This week, the global rare earth market exhibited diversified development trends. Malaysia and China initiated preliminary negotiations on rare earth processing projects, while the United States advanced the construction of alternative supply chains through investments in Australian critical mineral companies and strengthened cooperation with Brazil, among other measures. At the enterprise level, strategic collaborations were active, with several overseas companies positioning themselves in key segments of the rare earth supply chain through mergers, acquisitions, and partnerships.

[SMM Rare Earth Weekly Review: Post-Holiday Rare Earth Prices Remain Stable with Weak Market Trading] Before the holiday, due to factors affecting market sentiment, suppliers raised their market quotations for Pr-Nd oxide, and low-priced supplies tightened rapidly. However, by that time, metal plants had already completed their stockpiling, leading to a noticeable decline in market purchasing activity. After the holiday, a wait-and-see sentiment spread across the market, resulting in no significant rise in the actual transaction price of Pr-Nd oxide.

In August 2025, China's NEV production reached 1.39 million units, up 12% MoM and 27% YoY. This data indicates that NEVs have further solidified their position as the largest end-use consumption sector for rare earth magnetic materials.