CSC Financial says recycled feedstock has tightened and recycler operating rates
have fallen, prompting a downgrade to overall rare-earth output. SMM estimates
June praseodymium‑neodymium (PrNd) oxide production fell about 6%, and the share
of recycled PrNd oxide in total output dropped from 44% in May to 37% in June.
Supply is broadly tight with little near‑term upside. On the demand side,
European heat waves have lifted air‑conditioner sales—each unit uses roughly
0.1–0.2kg of rare‑earth permanent magnet—and magnet‑material makers, running low
inventories, are expected to increase purchases ahead of the air‑con peak and a
strong Q3 auto season. Rare‑earth prices are therefore likely to trend higher.
