Pr-Nd Alloy Prices Drop 0.8% Weekly, Struggle with Low Demand and Raw Material Supply Tightness【SMM Analysis】

Published: Jul 24, 2026 19:49

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Pr-Nd alloy prices fell 0.8% WoW to 917,500 yuan/mt as weaker raw material prices and sluggish downstream demand weighed on the market. Despite a late-week rebound in raw materials, buying interest remained weak. Producers posted their first loss of the year, with margins falling to -1,076 yuan/mt due to tight Pr-Nd oxide supply and oversupplied alloy. Near-term prices are expected to remain rangebound amid firm costs but weak demand and cautious restocking.

SMM, July 24 – This week, Pr-Nd alloy prices were generally in the doldrums. As of 17:00 on Friday, its price had fallen by 7,500 yuan/mt from Monday, closing at 917,500 yuan/mt, with a weekly decline of about 0.8% and a weekly average price of approximately 919,500 yuan/mt. The price decline this week was mainly due to the pullback in raw material prices and limited downstream inquiries and purchases, leading suppliers of the alloy to lower their quotes accordingly. Towards the weekend, driven by the rebound in raw material prices, suppliers raised their offers slightly. However, as downstream new orders were not ideal, magnetic material enterprises showed limited enthusiasm for purchasing Pr-Nd alloy, mainly engaging in restocking at low prices to meet essential needs, and had limited acceptance of high-priced alloy. As a result, the actual increase was only 2,500 yuan/mt.

Cost side, the per-tonne net profit of Pr-Nd alloy this week was approximately -1,076.2 yuan, down 235% WoW, marking three consecutive weeks of decline, and the first occurrence of losses this week. The reason lies mainly in supply-demand fundamentals. Recently, some raw ore separation enterprises have halted production, and the operating rates of scrap recycling enterprises have remained persistently low, tightening the supply of Pr-Nd oxide. Meanwhile, metal enterprises' operating rates in July continued to rise MoM, maintaining rigid demand for raw materials. The tight supply of Pr-Nd oxide made it difficult for metal enterprises to secure low-priced raw materials. At the same time, magnetic material enterprises' new orders were lackluster, with no significant improvement in operating rates, resulting in weak purchase willingness for Pr-Nd alloy. The oversupply of Pr-Nd alloy kept transactions under pressure, with actual transaction prices failing to match raw material costs.

Looking ahead to the near term, Pr-Nd alloy prices are expected to move sideways. On one hand, affected by tight Pr-Nd oxide supply and pressure from losses, factory offers remain relatively firm, providing bottom support for Pr-Nd alloy prices. On the other hand, magnetic material enterprises' new orders remain poor, and their acceptance of high-priced Pr-Nd alloy is low, with buyers mostly restocking at low prices to meet essential needs. The Pr-Nd alloy market lacks demand-driven upward momentum. In the short term, close attention should be paid to the pace of downstream restocking and the recovery of Pr-Nd oxide supply.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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