Rare Earth Price Increase Will Only Be Transitory Given Tepid Demand Rare earth prices have leveled out recently due to the ongoing crackdown on illegal rare earth mining in Jiangxi's Ganzhou city. The past couple of days have witnessed rising rare earth prices , especially medium and heavy rare earth, which gained close to 20%. Industry insiders believe rare earth prices will remain high for the immediate term, but the price rise may not be sustainable over a longer period of time given the lackluster demand downstream.
Rare Earth Prices Fall Back to Levels Seen 4 Years Ago, Global Demand Estimated at 107,000 Mt in 2013 Prices of rare earth, an indispensable element in hybrid power automobile and digital home appliance manufacturing, have fallen back to levels seen before 2010-2011 when prices soared due to China's restrictions on rare earth exports. Rare earth demand worldwide is estimated at 107,000 mt in 2013, up 7% from 2012, but growth has been slowing.
Rare Earth Permanent Magnetic Material Index Up 6.12% on M&A and Crackdown Demand for rare earth permanent magnetic materials has shrunk some with a slowdown in the economy. However, M&A and crackdown in the industry pushed rare earth permanent magnetic material index up by 6.12% two weeks ago.
Rare Earth Price Rise May Turn Out to Be Short-Lived Although rare earth prices have risen some, demand remains weak as operating rates at downstream producers are only 70%. A majority of market participants are worried this round of price increase in praseodymium-neodymium oxide may turn out to be only short-lived.
EU Requires China to Meet EU's Rare Earth Demand The EU will take action against subsidized products from China, said Karel De Gucht, member of the EU Trade Commission, in an interview with Reuters. The EU will seek other rare earth suppliers and ask China to meet the EU's demand for rare earth, he added. (Edited by SMM)
Tags: rare earth prices, rare earth demand
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