Rare Earth Production Falls 6% in June as Recycled Supply Ratio Declines to 37%, Price Rise Expected

According to CITIC Securities and SMM data, rare earth production dropped 6% in June, with recycled praseodymium-neodymium oxide declining to 37% of total output from 44% in May. On the supply side, tightening waste availability and lower refinery utilization rates constrain near-term output growth. Demand is expected to rise as European air conditioner sales surge amid high temperatures, with each unit requiring 0.1-0.2 kg of rare earth permanent magnets. Magnetic material manufacturers, holding lean inventories, are poised to increase procurement ahead of the cooling season and Q3 automotive peak demand, supporting price appreciation.
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