SHANGHAI, May 19 (SMM) – PrNd products prices were quite firm recently, with prices of PrNd alloy staying between 1.14-1.15 million yuan/mt. However, downstream motor companies and terminal players currently had meagre purchasing interest when PrNd alloy, the major raw material, prices rose above 1.1 million yuan/mt. The orders for low-end magnetic material reduced, and some downstream enterprises actively sought alternatives. On the other hand, the demand for high-end magnetic materials still existed owing to is irreplaceability. And there is lower possibility that NdFeB scrap supply will release substantial growth.

Magnetic enterprises’ bargaining power is weaker than terminal enterprises’. And industrial participants from the scrap recycling to rare earth metal processing and magnetic material production all suffered losses to some degree. As a result, some small and medium-sized magnetic enterprises in Zhejiang and some scrap recyclers in Jiangxi were forced to stop the production.

More than ten scrap recyclers in Jiangxi have planned to expand the production this year, but only a few are able to progress as planned. In the case of expansion approval and shortage of raw materials, some of the scrap recyclers are prevented from production expansion. .

Rare earth scrap supply is expected to remain in shortage, resulting in rising scrap prices and losses among recyclers. In other words, the cost support would be strong.

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