SMM News on May 6: In April, China's production of Pr-Nd oxide experienced a slight increase, while the production of Pr-Nd alloy showed a slight decline. Specifically, the production of Pr-Nd oxide increased by approximately 1.24% MoM. Despite a certain degree of decline in production in Shandong, the increase in production in Jiangxi was significant, driving up the overall production. In contrast, the production of Pr-Nd alloy decreased slightly by about 0.07% MoM. This decline was mainly reflected in Inner Mongolia, which was related to local production adjustments and changes in market demand.
According to inside sources, the adequate supply of ore-end raw materials in April was attributed to the reopening of mines in Myanmar, which directly contributed to a slight increase in the production of Pr-Nd oxide. However, due to the government's implementation of export controls, downstream demand decreased significantly, and the market purchasing atmosphere was relatively sluggish. Against this backdrop, some metal plants chose to shut down furnaces and cut production to adapt to market changes, which was also an important reason for the slight MoM decline in the production of Pr-Nd alloy.
Considering the current market dynamics, influenced by multiple factors such as the reduction in the supply of US ore, weak downstream demand, and insufficient supply of magnetic material scrap, the industry generally expects that the production of Pr-Nd may continue to decline in May. This trend is undoubtedly an issue that requires close attention for enterprises in the relevant industry chain and may also affect the future market landscape and price trends.
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