Core Viewpoint - The domestic supply and demand for praseodymium and neodymium oxide is expected to gradually tighten, leading to a moderate price increase in the context of a fragmented global rare earth supply and demand situation [1]. Group 1: Demand - The arrival of the downstream procurement peak season, combined with improved exports, is expected to enhance overall domestic magnetic material demand. The demand for high-performance neodymium-iron-boron is projected to grow at a CAGR of 25% from 2020 to 2024 and 13% from 2024 to 2027 [2][6]. - By 2027, the demand for high-performance neodymium-iron-boron is anticipated to account for 68% of the total demand, driven by the rapid development of new energy and energy-saving sectors [7]. - In June, China exported 3,188 tons of magnetic materials, marking a significant month-on-month increase of 157%, which is approximately 70% of the average monthly export volume over the past three years [15]. Group 2: Supply - Domestic rare earth supply is tightening due to a reduction in imports from the U.S. and limited supply increases from other sources. In 2024, domestic mining, Myanmar imports, and U.S. imports are expected to account for 78%, 10%, and 9% of the domestic rare earth supply, respectively [18][19]. - The U.S. MP Materials company announced on April 17 that it would stop exporting rare earth concentrates to China, resulting in zero imports from the U.S. in June [20]. - Myanmar's rare earth imports have rebounded to a three-year high, with 5,600 tons imported in June, but further significant increases are unlikely due to ongoing supply disruptions [21]. Group 3: Outlook - As of July 23, the domestic price of praseodymium and neodymium oxide was reported at 496,000 yuan per ton, reflecting a 25% increase since the beginning of the year and a 10% increase from the highest point in the first half of the year [25]. - The supply-demand balance for praseodymium and neodymium oxide is projected to gradually tighten from 2025 to 2027, with estimated balances of +6,304 tons, +522 tons, and -1,466 tons, representing 7.6%, 0.6%, and -1.6% of demand, respectively [32].