Although the China-U.S. dialogue in London sent a signal of easing tensions in rare earth magnetic material trade, the current situation in the industry is still marked by a contraction in short-term orders and a strong wait-and-see sentiment in the market. In the long run, Chinese magnetic material enterprises are leveraging this momentum to accelerate their transformation towards high-end and green development, with technological breakthroughs and supply chain restructuring becoming key bargaining chips for restarting cooperation in the future.

Recently, China Northern Rare Earth's joint venture moves in the magnet sector have attracted industry attention: the company has partnered with Ningbo Zhaobao, Suzhou Tongrun Drive, and Ningbo Xici to establish Northern Zhaobao Magnetics, advancing the implementation of a 3,000 mt/year high-performance NdFeB project. This seemingly independent set of moves actually reveals a fundamental shift in the underlying logic of the high-performance NdFeB industry's development—vertical integration and horizontal collaboration within the industry chain are becoming the core engines for technological breakthroughs and market competition.

[SMM Rare Earth Daily Review: Traders Lower Quotations, Rare Earth Prices Slightly Weaken] Currently, rare earth market prices have slightly softened, mainly influenced by weak end-use demand. Due to orders from magnetic material enterprises falling short of expectations, the demand for metal procurement has also decreased. Additionally, the tender prices from large manufacturers are relatively low, leading to a further expected decline in market prices, with the overall rare earth market performing sluggishly. Some traders have proactively lowered their quotations to sell off and cash in, but factory quotations remain firm due to cost support, and there is a strong sentiment of wait-and-see in the market.

Expert Gracelin Baskaran is urging western allies to form a coordinated “anchor market” to counter China’s dominance in critical minerals.

[SMM Rare Earth Morning Meeting Summary: Rare earth market in the doldrums, wait-and-see sentiment may persist] Prices of rare earth oxides are generally weak, and market transactions remain sluggish. According to market information, most separation plants are maintaining firm quotes, but some traders in the market are offering low-priced goods. Buyers are cautiously waiting and watching, and the trading atmosphere is poor.

[SMM Commentary: General Administration of Customs Issues Announcement on Querying Suspected Controlled Goods Without Certificates] On June 16, the General Administration of Customs issued an announcement regarding matters related to customs queries on the export control of dual-use items. It requires customs to implement query procedures for suspected controlled item exports without certificates. Enterprises are required to submit supporting materials such as contracts and technical reports within 7 working days, during which the goods will not be released.