SMM Analysis Of China Light Rare Earths Production In May And Forecast For June

In May 2024, domestic Pr-Nd oxide production was 6,625 mt, down 1.3% MoM. The decline was mainly reflected in the Jiangxi.

According to the SMM survey, some separation producers in Jiangxi halted production in May due to environmental protection issues. Some industry insiders said that production is expected to resume normal in July. Pr-Nd oxide production in Jiangxi decreased by 7% MoM, while production in other regions remained flat compared to April. In May, with downstream demand declining MoM, Pr-Nd prices also saw a significant reduction. It is expected that Pr-Nd oxide production will continue to decrease in June as the off-season for downstream NdFeB approaches.

In May 2024, domestic Pr-Nd alloy production was 5,917 mt, up 0.87% MoM.

The overall Pr-Nd alloy production remained stable in May, with little change in the operating rates compared to the previous month. There are reports that some producers will expand production in the future. From the current market trading situation, the stalemate between upstream and downstream in the market is quite severe. The downstream acceptance of high-priced Pr-Nd alloy is limited, and the operating rates of magnetic material plants dropped significantly in May. The follow-up orders for magnetic materials were lower-than-expected. It is anticipated that Pr-Nd alloy production will undergo downward adjustments in June.