[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.

Weak supply and demand in fundamentals, short-term fluctuations in tin prices, "waiting for the wind" - macro factors may become the key to breaking the deadlock!