SMM News on May 31: In May 2025, the production of Pr-Nd oxide and Pr-Nd alloy in China showed a trend of double decline on a MoM basis. The production cuts of Pr-Nd oxide were mainly concentrated in Jiangsu, Jiangxi, Shandong, and Sichuan. On one hand, the prolonged sluggishness of rare earth ore prices led to widespread reluctance among suppliers to sell, resulting in a sharp decline in market liquidity. Enterprises relying on imported ore faced significant raw material shortages. On the other hand, downstream NdFeB magnetic material enterprises experienced a contraction in orders, leading to a drastic reduction in scrap supply. This further impacted industrial clusters that primarily rely on scrap recycling as a raw material source. Scrap recycling enterprises found themselves in a predicament due to the disruption of raw material supply and losses. Meanwhile, the production cuts of Pr-Nd alloy were concentrated in Sichuan and Inner Mongolia. The export control policy for medium-heavy rare earths implemented since April directly suppressed the procurement demand for Pr-Nd alloy from magnetic material enterprises. Some metal plants were forced to halt production and reduce output due to the contraction of downstream orders.
From the perspective of Pr-Nd price trends in May, the Pr-Nd market remained in a stalemate amid weak supply and demand. Supported by raw material costs and supply contraction, the price of Pr-Nd oxide generally fluctuated rangebound. However, downstream acceptance of high prices was limited, and actual transactions did not see a significant increase. Although the quoted prices of Pr-Nd alloy slightly increased due to the cost transmission from raw material oxides, the actual demand remained persistently weak due to obstacles in the export of terminal magnetic materials, lacking sustained upward momentum in prices. Policy factors further exacerbated the uncertainty in the rare earth market. Export controls not only directly suppressed the demand for medium-heavy rare earths but also inhibited the consumption of light rare earths through industry chain transmission. Overall, Pr-Nd prices highlighted structural pressure amid narrow fluctuations in May. Subsequent trends will depend on the adaptive adjustments in the implementation of export control policies and the progress of global supply chain reconfiguration.
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