China's Rare Earths Prices No More ‘Cheap’
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- Category: Tungsten's News
- Published on Tuesday, 23 November 2021 15:55
According to the Global Times, rare earths prices in China have recently broken a 10-year high, driven by the development of new industries, tight supply, and state-level industry consolidation.
Industry insiders say this could be a sign marking the end of the irrational low price era for rare earths in China, as disclosed by the Global Times: As the fourth quarter is the traditional peak season for downstream demand for rare earths, the fundamentals of supply and demand are expected to support a continued rise in rare earth prices.
As an example of tight supply, the Globe mentions Lynas, an Australian company that accounts for 10% of global light rare earth production, which reported a 10% decrease in third quarter production of neodymium oxide praseodymium compared to the previous quarter and a 6% decrease year-over-year.
In addition, Myanmar's rare earth exports have shrunk due to the global pandemic, while at the same time, China's rare earth exports continue to remain at a high level, the report said. The Global Times noted that according to the General Administration of Customs, exports of rare earths reached 4,330.4 tons in October, a surge of 89.27 percent year-on-year.
Importantly, the export price of rare earths produced in China also increased to $3.44 billion, up 78.5% year-on-year, driven by strong demand and tight supply.
In March this year, the Ministry of Industry and Information Technology said that Chinese rare earths would no longer be sold at the price of the rare earths themselves, a signal of dramatic changes in the industry, according to the report. In the context of carbon neutrality and industrial transformation, the value of rare earths has increased.
Experts say that the "carbon peak and carbon neutrality" strategy is an opportunity for rare earth industry, as the development of new energy vehicles and clean energy construction has a huge connection with rare earths.
"The rare earths prices in China has reached an all-time high. While it may fall like other commodities, it may never return to its original extremely low level due to rising environmental costs and other factors," the Global Times concluded.
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