PrNd Oxide and Alloy Output Dropped in June amid Tight Supply and Contained Demand

SHANGHAI, Jul 8 (SMM) – China PrNd oxide output stood at 5,928 mt in June 2022, down 7.5% MoM. Among the producing areas, Jiangxi and Fujian saw added output, while output cuts were also found in Jiangxi, Shandong and Inner Mongolia.

Scrap supply was still tight in June as magnetic material companies received fewer orders in the second quarter in light of spreading COVID and sluggish demand, dragging down the supply of NdFeB scrap. And the output in Shandong, Jiangxi and Inner Mongolia fell 22%, 5% and 16% respectively MoM in June for multiple factors including insufficient raw material supply and high scrap prices.

Nonetheless, the output of PrNd oxide in Fujian rose 10% MoM in June as local companies produced normally to deliver the long-term orders.

The overall PrNd oxide output is likely to fall MoM in July amid sustaining supply shortage of scrap as well as poor demand although the supply of ion ore in Jiangxi and Myanmar is likely to pick slightly in July.

Output of PrNd alloy stood at 5,163 mt in June, down 4.5% MoM with output cuts mainly contributed by Jiangxi, Sichuan and Inner Mongolia.

In details, PrNd alloy output fell 8%, 13% and 2% respectively MoM in June when magnetic material factories became more cautious in purchasing PrNd alloy in light of few orders, and the orders received by alloy plants were also modest. In addition, some plants were affected by high equipment maintenance cost as the rising temperature in Inner Mongolia also heightened the furnace temperature.

It is expected PrNd alloy output will drop in July.