SHANGHAI, Sept. 7 (SMM) -- According to a recent SMM survey, downstream demand in China was low in August. Total output at the 10 major domestic neodymium-iron-boron producers in the survey was 1,612 mt in August, down 223 mt from July, or a drop of 12.2% MoM.
The survey shows that only one of ten producers reported increases in output in August.
SMM believes that falling output of neodymium-iron-boron in August was due mainly to weak downstream demand along with the arrival of a low demand period in some sectors, which reduced orders. Export-oriented producers reported normal production due to stable demand from overseas countries, even with slight increases in orders. Producers mainly engaged in domestic sales, however, cut production, and some small producers even suspended production.
As of late August, raw material inventories at the surveyed producers were not ample, and stocks at some producers were only enough for 15-day’s production. But, producers remained wary of raw material purchases. Producers with decent orders continued to purchase goods on an as-needed basis.
Based on the survey, producers in the survey believe that prices of neodymium-iron-boron will depend on price trends of rare earth, and remain bullish in the long term. In the short term, six of ten producers believe that prices will not improve in the short term, and the rest is not clear about the price trend.