[SMM Rare Earth Daily Review: Rare Earth Market Remains Calm with Stable Prices] Currently, the prices in the rare earth market have largely remained stable. After the Dragon Boat Festival, the overall market sentiment for trading has been relatively weak. Prices in the oxide market are supported by costs, maintaining high levels. The metal market has seen a slight increase in trading activity due to restocking by a small number of magnetic material enterprises. However, as end-use demand has not shown improvement, the order-taking situation for magnetic materials has been average, with restocking mainly consisting of small, on-demand purchases, and the market sentiment remains cautious.

[SMM Rare Earth Morning Meeting Summary: Magnetic Material Enterprises Restocked in Small Quantities, Rare Earth Quotations Rose] Last week, the market quotations for rare earth oxides rose slightly. Most industry participants believed that the future price of rare earths was difficult to predict, and currently, they mainly expected the market to remain stable. Driven by cost support, it is expected that the price of oxides will not decline significantly.

[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.