This week, the prices of upstream rare earth raw materials fluctuated downward. Due to a significant increase in ore imports, oxide prices weakened, and some miners' confidence in the market outlook wavered, leading to increased shipments. Meanwhile, frequent bidding by major magnet manufacturers kept upstream market prices firm, and the tug-of-war between upstream and downstream markets remained intense.
Under these circumstances, SMM expects that rare earth prices will likely stabilize in the near future. In September 2024, the domestic production of Pr-Nd oxide and Pr-Nd alloy both increased MoM. The main increase in Pr-Nd oxide production was seen in Jiangxi, Jiangsu, and Shandong, while the main increase in Pr-Nd alloy production was seen in Guangxi and Inner Mongolia.
According to the SMM survey, due to the rising operating rate of downstream magnetic material companies driven by the peak season effect, the operating rate of these companies significantly increased. This means that their demand for raw materials increased, thereby boosting the willingness of purchasers to stock up. Due to the growth in downstream demand, upstream enterprises also increased their production to meet market demand.
Due to the growth in downstream demand, upstream enterprises also increased their production to meet market demand. However, while increasing production, upstream enterprises also faced certain resource constraints. Due to the relatively tight supply of ore, the growth in oxide production was less than that of metals, as scrap recycling can serve as a supplementary source of raw materials, alleviating some of the tight supply situation. The increase in oxide production was mainly concentrated in scrap recycling companies. As the degree of inversion decreased, the operating rate of some scrap recycling companies significantly increased.
With the increase in demand, inquiries and procurement activities in the Pr-Nd market significantly increased. Holders of goods were optimistic about the future market, showing a clear reluctance to sell, and low-priced Pr-Nd sources quickly decreased. Throughout September, Pr-Nd prices performed strongly."Shanghai Metals Market"
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