Highlights

• Shanghai Metals Market report reveals growing tension in China's rare earth scrap market, particularly for NdFeB magnet materials.
• Recycled scrap prices fluctuate dramatically, with suppliers holding back inventory in anticipation of further price increases.
• Market dynamics underscore the strategic importance of building domestic rare earth recycling capacity for Western stakeholders.

This week’s Shanghai Metals Market (SMM) report on recycled rare earths highlights growing tension in China’s scrap market—particularly for materials recovered from NdFeB (neodymium-iron-boron) magnets. Rare Earth Exchanges™ observes that the volatility in scrap pricing is not merely noise; it reveals structural dynamics that investors and supply chain managers should watch closely.

At the heart of the turbulence is a behavioral bottleneck: supplier reluctance to sell in anticipation of further price increases. Early-week surges in rare earth oxide prices—especially for praseodymium-neodymium (Pr-Nd), dysprosium, and terbium—fueled bullish sentiment among scrap holders, causing recycling enterprises to bid higher just to secure feedstock.

Yet as oxide prices softened midweek, recyclers pulled back, causing prices to dip—only to rise again by week's end as downstream buying interest revived. This “W-shaped” price behavior reflects fragile confidence in spot pricing and ongoing speculation that further upside is likely.

Current recycled scrap price ranges include:

• Pr-Nd: ¥516–522/kg
• Dysprosium: ¥1,643–1,654/kg
• Terbium: ¥5,439–5,550/kg
• Gadolinium: ¥89–110/kg
• Holmium: ¥222–233/kg

The larger implication: China’s magnet scrap recycling sector is increasingly price sensitive, particularly as downstream demand (e.g., for EVs and wind turbines) pulls more supply into long-term contracts. Suppliers appear confident that prices will remain elevated in the short term, creating friction in spot procurement and impacting inventory strategies.

For Western stakeholders, this dynamic underscores the strategic importance of building domestic rare earth recycling capacity. As China tightens control over both primary and secondary REE markets, the ability to secure scrap—especially for heavy REEs—will be critical to supply chain resilience.

Rare Earth Exchanges™ will continue tracking volatility indicators across recycled and primary REE markets.

© Rare Earth Exchanges™ 2025