[SMM Rare Earth Morning Briefing] Oxide Recovery Drives Up Metal Prices, High-Temperature Maintenance of Magnetic Materials Puts Demand Under Pressure, and Scrap Wait-and-See Sentiment Is Strong

SMM, August 3:

Rare Earth Ore:

• Prices: Medium-yttrium, europium-rich ore prices were about 249,500 yuan/mt, monazite prices were about 44,000 yuan/mt, and rare earth carbonate prices were about 60,400 yuan/mt.

• Supply and Demand: At present, the overall circulation frequency of rare earth ores remained poor, and market trading conditions were stagnant. The weak oxide prices also led to a decline in actual transaction prices for rare earth ores.

Rare Earth Oxides:

• Prices: Pr-Nd oxide quotes and inquiries were both very sluggish, but producers’ offers remained firm. Dysprosium oxide and terbium oxide prices showed less noticeable fluctuations.

• Supply and Demand: Last week, affected by fluctuations in futures prices, some traders further lowered their quotations. However, producers showed limited willingness to continue offering at low prices. Under such conditions, metal plants adopted a strong wait-and-see attitude, and market inquiries were sluggish. In the medium-heavy rare earth segment, inquiries for dysprosium oxide and terbium oxide remained low, producers’ offers stayed firm, and prices showed no notable changes for the time being.

Rare Earth Metals:

• Prices: Pr-Nd alloy prices recovered slightly, but market trading atmosphere was sluggish. Dysprosium-iron alloy and terbium metal prices remained flat.

• Supply and Demand: Last week, influenced by the recovery in oxide prices, suppliers of metals raised their offers slightly in response. However, market inquiry activity was limited, and downstream magnetic material enterprises had limited acceptance of high metal prices. Trading sentiment was relatively sluggish, and actual transactions were in the doldrums. In the medium-heavy rare earth market, inquiry activity remained scarce. Prices of terbium metal and dysprosium-iron alloy showed no significant fluctuations, and the overall performance was stable.

NdFeB Blanks:

• Prices: NdFeB blank N40 (Ce) was quoted at 219-229 yuan/kg, NdFeB blank 40M was quoted at 260-270 yuan/kg, and NdFeB blank 40UH was quoted at 364-384 yuan/kg.

• Supply and Demand: Last week, NdFeB blank quotations were lowered, primarily because the decline in raw material prices drove down NdFeB prices. On the trading front, mainstream motor manufacturers entered their summer maintenance period from late July to early August, leading to a notable reduction in operating rates and a decrease in demand for NdFeB. Overall, market transactions were mediocre.

NdFeB Scrap:

• Prices: Prices of Pr-Nd recycled from NdFeB scrap edged up slightly, while prices of dysprosium recycled from NdFeB scrap and terbium recycled from NdFeB scrap remained stable.

• Supply and Demand: Last week, prices in the scrap market edged up slightly, mainly influenced by the slight increase in oxide prices. Recycling enterprises correspondingly raised their external purchase quotations, but scrap holders were rather cautious about selling. The overall market was dominated by a strong wait-and-see sentiment, and actual transactions were mediocre.