[SMM Analysis: Difficulties in Raw Material Procurement, Weak Downstream Demand Lead to MoM Decline in Medium-Heavy Rare Earth Production in May] In May 2025, China's production of medium-heavy rare earth oxides experienced a relatively significant MoM decline. The most critical reason for this situation was the simultaneous shortage of ion-adsorption ore from Southeast Asia and NdFeB scrap. This shortage had a direct impact on the operating rates of separation plants and scrap recycling enterprises, leading to a significant reduction in their oxide production.

[SMM Analysis: Pr-Nd Production Shrank MoM in May, Market Prices Fluctuated Rangebound] From the price trend of Pr-Nd in May, the Pr-Nd market was in a stalemate under the pattern of weak supply and demand. Supported by raw material costs and supply contraction, the overall price of Pr-Nd oxide fluctuated rangebound. However, downstream acceptance of high prices was limited, and actual transactions did not see a significant increase.

[SMM Analysis: NdFeB Production May Increase Slightly in 2025, with Rising Demand from NEVs, Home Appliances, and Robots as Highlights] Su Zhanpeng, an analyst from SMM's Rare Earths Division, shared insights into the transformation of the NdFeB industry driven by policies, the restructuring of supply and demand, and strategies for enterprises to break through. In 2025, the home appliance industry, driven by a rebound in market demand, technological innovation, and policy support, is showing a positive development trend, with a continuous increase in demand for NdFeB. The application of humanoid robots in manufacturing, healthcare, services, security, and other fields is expanding, and they are expected to become a new growth point for demand in the downstream rare earths sector. This trend will become more pronounced in 2025 and the coming years. Benefiting from increased demand in the domestic end-use market, which drives an increase in NdFeB production, NdFeB production will increase slightly in 2025.