SMM Analysis Of China Medium-Heavy Rare Earths Production In May And Forecast For June

In May 2024, domestic production of dysprosium oxide was 215.5 mt, down 0.8% MoM, with the decline mainly reflected in Jiangxi. Domestic production of terbium oxide was 40.8 mt, remaining flat MoM. Domestic production of gadolinium oxide was 303.8 mt, down 1% MoM, with the main decline also reflected in Jiangxi. Domestic production of holmium oxide was 43 mt, showing no significant change compared to April.

According to SMM, production in Longnan of Jiangxi has been halted since May and is expected to continue until July, resulting in a MoM reduction in local oxide production. Specifically, dysprosium oxide production in Jiangxi decreased by 3.1% MoM, and gadolinium oxide production decreased by 3% MoM. Some separation enterprises reported to SMM that landslides caused by weather conditions in Myanmar might impact imports of ionic minerals. Given the current weak downstream demand, it is expected that the production of medium-heavy rare earth oxides will continue to decline.