Highlights

• Rare earth oxide and metal prices experience softening due to low buyer engagement and reduced demand.
• Magnetic material manufacturers are hesitant to place new orders amid pricing volatility.
• Market outlook suggests potential further downward pressure if demand does not improve soon.

The latest Shanghai Metals Market (opens in a new tab) (SMM) report highlights a softening rare earth market, with poor trading activity and slight price declines across key oxide and metal categories. Despite upstream suppliers holding firm on prices, downstream buyers remain cautious, leading to subdued transactions. Some traders are actively lowering prices to push sales, contributing to a pullback in rare earth oxide prices.

Rare Earth Oxides & Metals See Weak Transactions

The rare earth oxide market saw price adjustments due to low buyer engagement. Pr-Nd oxide prices settled between 448,000-450,000 yuan/mt, while dysprosium oxide hovered at 1.72-1.74 million yuan/mt. Terbium oxide saw a slight dip to 6.25 million yuan/mt. While supply remains stable, demand weakness is pressuring traders to lower prices.

Similarly, rare earth metal prices showed signs of softening as downstream magnetic material manufacturers reduced order volumes. Pr-Nd alloy remained between 549,000 and 553,000 yuan/mt, dysprosium-iron alloy dropped to 1.69-1.71 million yuan/mt, and terbium metal weakened to 7.8-7.85 million yuan/mt. Supplier discounting signals weak end-user demand and growing market hesitancy.

Magnetic Materials & Scrap Markets Face Pricing Pressure

In the magnetic materials sector, Neodymium-Iron-Boron (NdFeB) blanks saw pricing uncertainty, with N38 blanks trading at 145-155 yuan/kg, while 40M and 40H blanks settled at 191-201 yuan/kg and 195-205 yuan/kg, respectively. Limited buyer confidence is dampening new orders, as high prices in previous months have made securing contracts difficult.

The NdFeB scrap market saw moderate price stabilization following fluctuations in oxide prices. PrNd scrap settled at 457-474 yuan/kg, while dysprosium and terbium scrap prices ranged from 1,635-1,657 yuan/kg and 5,123-5,178 yuan/kg, respectively. Separation enterprises have resumed raw material procurement, offering some stability to the sector.

Market Outlook: Uncertainty & Buyer Hesitation

While supply remains relatively stable, buyer reluctance, falling orders, and price discounting by traders indicate a weakened demand environment. Magnetic material manufacturers are taking a wait-and-see approach and are unwilling to commit to high raw material costs amid pricing volatility. If demand does not pick up soon, further downward pressure on rare earth prices could emerge, particularly in the oxide and alloy segments.