Neodymium-praseodymium (Nd/Pr) oxide — the main raw material behind every sintered NdFeB magnet — is trading around 760,000–766,000 yuan/mt in mid-July 2026 on the SMM China benchmark, or roughly US$94–95/kg before VAT. Prices jumped sharply at the start of the month, pushing the wider Nd/Pr market to its highest levels of the year.
If you buy NdFeB magnets, this is the number that drives your quotes. Below we lay out where prices sit today, why they moved, and what to plan for in the third quarter — in plain terms.
Nd/Pr Price Snapshot — July 2026
Here are the benchmarks that matter for magnet costs, all from Shanghai Metals Market (SMM):
| Benchmark (SMM, China) | July 2026 level | vs 1 June | What it tells you |
|---|---|---|---|
| Pr-Nd oxide | ~760,000–766,000 yuan/mt (~US$94–95/kg, ex-VAT) | Up | The upstream raw material price |
| NdPr alloy | US$133.02/kg | +21.4% | The feedstock magnet makers actually buy — new 2026 high |
| Neodymium metal | US$145.88/kg | +19.6% | Above every earlier 2026 reading |
| Praseodymium metal | US$149.19/kg | +19.5% | Trading almost level with neodymium |
| Neodymium metal, FOB China | ~US$160/kg | Up | The export price for overseas buyers |
| Praseodymium metal, FOB China | ~US$165/kg | Up | Includes export duties and margins |
Two other sources back up the move. Trading Economics’ neodymium series sat near 992,500–1,005,000 yuan/mt in mid-July — up around 5–6% on the month and 72–80% on the year — which lines up closely with SMM. CREIA, China’s industry association, published a similar range but notes its own index reflects state-influenced references rather than open trading. For export buyers, the SMM and FOB numbers are the cleaner guide.
First, the Basics: Oxide, Alloy, and Metal
These three prices get quoted interchangeably, but they are different products at different points in the chain:
- Nd/Pr oxide is the separated raw material that comes out of refining. It is the upstream reference.
- NdPr alloy is the blended metal — roughly 75–80% neodymium and 20–25% praseodymium — that magnet factories actually melt into their production. This is usually the most relevant price for a magnet buyer.
- Neodymium and praseodymium metal are the two pure metals. In practice they are rarely separated, because both work well together in magnets and splitting them adds cost for little benefit.
When you see a headline “neodymium price” of US$240/kg or more, that is almost always a retail or investor quote — not the industrial number. For bulk export orders, the FOB China figures above are the ones to watch.
How Prices Got Here in 2026
This year has been a tale of two halves.
Nd/Pr started 2026 near US$53/kg and climbed to a peak of about US$136–140/kg by the end of April — one of the fastest rises the rare earth market has seen in years. Prices then cooled through May and June as buyers worked down inventory and Chinese demand softened, with oxide easing back toward the US$90/kg area.
That dip was mostly buyers stepping back and speculative positions unwinding — not a change in the underlying shortage. Early July proved the point, with prices snapping back to new highs for the year
Why Prices Jumped in July
Several things came together in the first week of the month:
- Magnet makers restocked. After two uncertain quarters, buyers returned to the market, low-priced material dried up, and suppliers raised quotes.
- Futures rose. Firmer Nd/Pr futures pulled spot prices up with them, and some high-priced deals went through on 8 July.
- Supply tightened. Reported production cuts at some separation and recycling plants made sellers less willing to discount.
- Buyers expect tighter quotas. The market is pricing in the next round of government quota guidance before it even lands.
By mid-July the market had settled into consolidation. Oxide quotes moved day to day — up 7,500 yuan/mt on 8 July, then down 2,500 yuan/mt on 14 July — as upstream suppliers held firm and downstream buyers made careful, just-in-time inquiries. Metal prices stayed comparatively steady through the swings.
The Supply Picture
Government quotas are the biggest wild card
China’s Ministry of Industry and Information Technology (MIIT) sets annual limits on how much rare earth can be mined and refined. When those limits tighten — or when the market simply expects them to — prices tend to rise. With China producing around 92% of the world’s refined NdPr and most of its NdFeB magnets, the mid-year quota announcement is the single biggest factor for the rest of the quarter.
Recycling is filling part of the gap
Recycled Nd/Pr oxide output surged 144% year-on-year in the first half of 2026, becoming a real supply cushion. But it is policy-sensitive: a tax-compliance clean-up cut June’s recycled output by about 20%, and new rules are expected to trim the recycled share through the rest of the year.
Export rules split the market in two
The most important structural feature of 2026 is that light rare earths and heavy rare earths are being treated very differently on export. Light rare earths — neodymium and praseodymium — are flowing freely in high volumes. Heavy rare earths — dysprosium and terbium — remain tied up in export licensing and carry steep premiums. That split matters directly to how NdFeB magnets are priced and shipped.
The Light-vs-Heavy Divide — and Why It Matters to You
The Nd/Pr prices in this update sit on the light rare earth side, which is trading and shipping normally. The bottleneck is on the heavy side — dysprosium and terbium — which are added to standard high-temperature NdFeB grades to keep them stable when they get hot. Those are exactly the elements caught in export licensing.
This turns grade selection into a supply-chain decision, not just an engineering one.
XHMAG’s Dy/Tb-free NdFeB grades reach high coercivity without any heavy rare earth additions, using grain boundary diffusion and careful microstructure control. Because they contain no dual-use heavy rare earths, they ship under standard export procedure in 25–30 days, with no MOFCOM permit required.
For you, that means one thing: your cost is tied only to the light Nd/Pr market covered here, while you skip the constrained, premium-priced, licence-gated heavy rare earth market entirely. In a July where Nd/Pr flows freely and Dy/Tb does not, that is a real advantage for both budget and lead time.
What It Means for Your NdFeB Orders
A few practical points for this quarter:
- Expect firmer costs. With NdPr alloy at a 2026 high, magnet quotes will reflect higher raw material prices. Don’t assume the June lows are coming back — lock in pricing windows on purpose.
- Track the FOB price, not the retail headline. FOB China metal near US$160–165/kg is your reference, not the US$240/kg-plus investor quotes.
- Use grade choice to manage risk. Where the operating temperature allows, Dy/Tb-free grades take heavy rare earth risk off your bill of materials and keep delivery predictable.
- Plan for daily moves. Quotes are shifting within the week, so expect short validity windows on supplier prices.
Q3 2026 Outlook
The near-term direction hinges on the government’s quota announcement. Longer term, the demand story is intact: steady growth in EV motors, more direct-drive wind turbines, and a multi-year wait before Western mining and refining reach real scale. Most analysts don’t expect a return to oversupply before 2027.
The likely path is an elevated but choppy Nd/Pr market with a rising floor — higher highs and sharper pullbacks rather than a smooth line. For buyers, that means disciplined pricing windows and grade choices that shield you from the heavy rare earth bottleneck.
FAQ
What is the current Nd/Pr oxide price? In mid-July 2026, Pr-Nd oxide is trading around 760,000–766,000 yuan/mt on the SMM China benchmark — roughly US$94–95/kg before VAT. Daily quotes move within a band of a few thousand yuan.
Why did Nd/Pr prices jump in July 2026? In the four weeks to 1 July, the NdPr alloy benchmark rose 21.4% to a 2026 high. The drivers were magnet makers restocking, firmer futures, reported supply cuts at some plants, and expectations of tighter government quotas.
What’s the difference between Nd/Pr oxide, NdPr alloy, and neodymium metal? Oxide is the separated raw material. NdPr alloy is the blended metal (about 75–80% Nd, 20–25% Pr) that magnet factories actually use. Neodymium and praseodymium metal are the pure metals. For magnet buyers, the alloy price (US$133.02/kg on 1 July) is usually the most relevant.
How do China’s export controls affect NdFeB magnet supply? The 2026 market is split. Light rare earths (Nd, Pr) export freely in high volumes. Heavy rare earths (Dy, Tb) are limited by export licensing and cost more. Standard high-temperature NdFeB grades that rely on Dy/Tb are exposed to this friction.
Are Dy/Tb-free NdFeB magnets affected by the price surge? Their cost follows the light Nd/Pr market, so they reflect the current firmness — but they avoid the licence-gated heavy rare earth market completely. XHMAG’s Dy/Tb-free grades ship under standard export procedure in 25–30 days with no MOFCOM permit, keeping lead times predictable.
Sourcing Dy/Tb-Free NdFeB in a Volatile Market
XHMAG has supplied Dy/Tb-free sintered NdFeB grades for many years to buyers across Europe, Turkey, India, Vietnam, and the USA — grades built to hold coercivity without heavy rare earths, and to clear customs under standard export procedure. When the light Nd/Pr market flows freely but the heavy side is stuck, that combination protects both your costs and your delivery schedule.
For current grade availability, live FOB pricing, and quotes indexed to the July market, contact Tony Pan at tony@xh-magnet.com.
Price data from Shanghai Metals Market (SMM), assessed early-to-mid July 2026, cross-checked against Trading Economics and CREIA. Figures are China benchmarks unless marked FOB. For market information only; not investment advice.
