Last week, Pr-Nd oxide prices fell to 550,000 yuan/mt and then rebounded rapidly, rising to 580,000 yuan/mt as of today. A deep analysis of the reasons behind this bottoming out of Pr-Nd oxide prices reveals that the shift in market supply and demand sentiment was undoubtedly the most critical driving factor.

In August 2025, China's sintered NdFeB magnetic material industry showed a MoM decline in production but saw the consolidation of advantages among top-tier enterprises. According to SMM's frontline survey data, the national total production of sintered NdFeB reached 29,599 mt that month, down approximately 6.3% MoM. In terms of production structure, top-tier enterprises produced 20,904 mt, accounting for 70.45% of the total; mid-tier enterprises produced 6,997 mt, accounting for 23.74%; and small-tier enterprises accounted for only 5.81%.

[SMM Rare Earth Weekly Review: Rare Earth Prices Continued to Decline with Weak Downstream Procurement Demand] This week, Pr-Nd oxide prices remained weak. However, as prices fell to low levels, metal plants' restocking willingness gradually increased, and suppliers' offers became firmer. Today, Pr-Nd oxide prices pulled back to 550,000-554,000 yuan/mt. Some market participants believe that Pr-Nd oxide prices are expected to start a rebound trend.

[SMM Rare Earth Weekly Review: Rare Earth Prices Fluctuated with Medium-Heavy Rare Earth Prices Rising] This week, the price trend of Pr-Nd oxide remained weak. Currently, most industry players maintained a strong wait-and-see sentiment due to the impact of news factors, leading to significantly weaker market procurement activity. Although separation plants held firm on their quotations, some traders had already begun actively selling at lower prices. Within the week, the price of Pr-Nd oxide pulled back to 595,000-598,000 yuan/mt.

SMM's monthly production data for base metals is released at the end of each month, aiming to uncover the true fundamentals for industry chain professionals and investors, and providing a clearer grasp of the future direction of the metals market.

On Tuesday, US President Trump mentioned during a press conference with South Korean President Lee Jae-myung that if China were to halt the export of rare earth magnets again, "countermeasures such as imposing 200% tariffs would be taken." However, he acknowledged that such high tariffs would signify a breakdown in bilateral trade. Subsequently, China's Foreign Ministry responded, stating that China consistently handles and advances China-US relations based on the principles of mutual respect, peaceful coexistence, and win-win cooperation, while firmly safeguarding its own sovereignty, security, and development interests.

[smm rare earth weekly review: rare earth prices fluctuate downward market transactions stall] this week, pr-nd oxide prices pulled back. on one hand, as pr-nd oxide prices rose rapidly, downstream purchase willingness gradually decreased. on the other hand, influenced by news factors, traders' confidence in the future weakened, and they began to dump goods at lower prices. during the week, pr-nd oxide prices pulled back to 600,000-608,000 yuan/mt.

In July 2025, China's total exports of NdFeB permanent magnets reached 5,577.13 mt, up 77.95% MoM, with exports to Europe at 1,528.85 mt, accounting for 27% of the monthly export total. Cumulative data from January-July 2025 shows that China exported 11,476.77 mt of rare earth permanent magnets to Europe, representing 41% of its global exports. Germany, as the largest demand country in Europe, imported 5,534 mt from January to June, accounting for 48% of Europe's total imports, reflecting the deep reliance of Europe's new energy industry on China's supply chain.

China has implemented sweeping new regulations to tighten its control over rare earth minerals, expanding its quota system to include imported raw materials. This strategic move, announced on August 22, 2025, further consolidates China's grip on the global supply chain of these critical minerals energy transition and defense applications.