Summary: SMM reported that Chinese PrNd metal prices held near recent highs during the week to October 16, but oxide costs rose faster and pushed estimated metal-processing margins back below zero. Magnet makers continued to buy mainly for immediate needs, leaving the price rise without strong transaction-volume confirmation.
Metal prices flatten while oxide costs rise
Praseodymium-neodymium metal was quoted by Shanghai Metals Market at RMB 895,000-900,000 per tonne on October 16 on a delivered basis including 13% VAT. SMM calculated a weekly average of RMB 898,400 per tonne, only 0.10% above the previous week after prices briefly reached RMB 903,000 per tonne.
The cost side moved faster. SMM said the weekly average price of PrNd oxide rose 0.47% week on week, narrowing the spread available to metal producers for a second consecutive week. Its estimate showed metal-processing net profit falling back into negative territory after a brief positive reading in the prior week.
Magnet demand has not confirmed the move
Higher raw-material offers did not translate into a broad restocking wave. SMM’s research indicated that magnet manufacturers continued to purchase mainly against immediate requirements and showed limited willingness to accept higher prices. Completed transaction volumes therefore lagged the movement in quoted prices.
September production of PrNd metal declined month on month, ending five consecutive months of growth, and October production schedules could fall further if the margin squeeze persists. NdFeB magnet-blank output increased slightly in September and schedules point to a stronger October, but SMM cautioned that actual end-user orders and bulk purchases have not yet validated those plans.
B2B implications for magnet sourcing
For magnet buyers, the combination of high raw-material costs and cautious demand can produce a narrow and unstable quotation range. A supplier may face cost pressure even when visible metal prices appear flat, while weak transaction volumes can limit confidence in any short-term trend.
Procurement teams should compare quotations using the same grade, coating, tolerance, magnetization and volume, and ask suppliers to state quote validity. It is also useful to separate raw-material movements from processing, testing and finishing costs. SMM expects PrNd metal prices to remain supported by costs but capped by demand, although that outlook remains conditional on oxide prices, production cuts and the arrival of downstream orders.