Pr-Nd prices welcomed a "good start" in the first ten days of July, with strong market bullish sentiment [SMM analysis]

SMM reported on July 10: At the beginning of July, the Pr-Nd oxide market witnessed a significant price increase. Within just ten days, the price increase easily exceeded 2%. This trend was not accidental but a market phenomenon resulting from multiple intertwined factors.

According to the latest market information compiled by SMM from various sources, the rise in Pr-Nd prices was driven by multiple factors. The first and foremost was the situation on the supply side. Recently, with the continuous strengthening of domestic environmental protection checks, some separation plants may face temporary production shutdowns to comply with these checks. This adjustment in production is expected to directly lead to a decline in Pr-Nd oxide production in July. The reduction in production naturally supports prices in terms of the supply-demand relationship.

Meanwhile, changes in the international situation have also had a considerable impact on supply. Especially in Southeast Asia, due to abnormal weather conditions and armed conflicts in some regions, local ion-adsorption ore mining and transportation have encountered significant obstacles. This situation is expected to further compress imports of ion-adsorption ore, undoubtedly signaling another price increase for the domestic market.

However, it is not only the supply side that affects price trends; changes on the demand side cannot be ignored either. Entering July, downstream orders are generally expected to be positive by the market. Major magnetic material producers have accelerated their pace of purchasing Pr-Nd alloy and frequently conducted tender activities. This positive procurement trend not only further solidifies market confidence in end-use consumption but also makes most industry insiders optimistic about the continued robust demand for rare earths downstream.

Taking into account the information from multiple dimensions mentioned above, most industry players believe that a clear market consensus has formed regarding the expected tightening of the supply-demand fundamentals in the short term. This change in fundamentals undoubtedly provides strong support for Pr-Nd oxide prices. As the traditional off-season for NdFeB gradually comes to an end and the September-October peak season for the industry approaches, industry insiders expect Pr-Nd prices to maintain a certain upward momentum in the coming period.

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