SMM, January 24: In January 2025, the medium-heavy rare earth oxide market presented a complex picture. At the beginning of the month, data showed a slight MoM decrease in the production of medium-heavy rare earth oxides from raw ore separation plants, while production from scrap recycling companies saw some MoM growth. Overall, despite differing trends in raw ore production and scrap recycling, the total production of medium-heavy rare earth oxides remained relatively stable compared to December 2024. This stability maintained market expectations, as total supply stayed at a comfortable level despite fluctuations in production from individual sources.
According to SMM's survey, as of now, imports of Myanmar ore have remained sluggish and have not recovered as expected, directly leading to a significant tightening in the supply of domestic ion-adsorption ore. Since January, the market has clearly experienced an undersupply of ion-adsorption ore, forcing some raw ore separation enterprises to cut production or even halt operations due to the inability to secure a stable supply of ion-adsorption ore. This tight supply situation at the mining end has triggered a chain reaction in the market, driving up overall rare earth raw material prices. As a result, the rare earth market in January has been exceptionally active, with raw material prices showing a strong upward trend.
Meanwhile, in this market environment, scrap recycling-focused enterprises have identified new opportunities. Their profit margins have improved due to rising rare earth prices, prompting them to increase production activities significantly, with operating rates showing a notable rise. This not only alleviated some market demand pressure but also made the recycling industry more dynamic during this period.
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