The scrap price remains high, driving up the procurement volume of scrap [SMM analysis]

 SMM reported on July 4: In June, the procurement volume of NdFeB scrap increased significantly MoM, driving up the production of scrap-recycled oxides. This was mainly due to the sustained high prices of NdFeB scrap in June. As of now, the average price of Pr-Nd recycled from NdFeB scrap has reached 485.5 yuan/kg, the highest level in the past year. Even the lowest price in the month was as high as 480 yuan/kg. Stimulated by these high prices, suppliers' willingness to sell increased significantly, leading to a noticeable increase in the procurement volume of scrap by recycling enterprises and a rise in their operating rates.

The prices of Pr-Nd scrap remained high, mainly influenced by the overall stable prices of Pr-Nd oxide in June. The tight supply of low-priced ore at the mining end increased the difficulty of procurement for separation plants, leading to a rise in raw material costs and providing support for the prices of Pr-Nd oxide. Meanwhile, orders from downstream magnetic material enterprises did not improve significantly in June, and demand was still affected by the off-season. The rare earth market showed a weak supply and demand situation, with oxide prices remaining stable, driving the scrap prices to stay high. As end-use demand gradually rebounds and export control approvals accelerate, the operating rates of downstream magnetic material enterprises are expected to increase, and the output of scrap will correspondingly rise. However, as end-use demand recovers, providing support for price increases, most market participants are optimistic about the future trend of rare earth prices, prompting some scrap enterprises to resume production. In the long term, the procurement volume of scrap by recycling enterprises is expected to continue increasing. 

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