Reuters reported that prices of rare earth elements are expected to drop further as new supply hit the market and weak demand in China pushes exports higher.
As quoted in the market news:
The market has steadied in recent months, but new output from U.S. Molycorp (MCP.N) and Australia’s Lynas Corp (LYC.AX) is likely to pressure prices, especially those of “light” rare earths which are not as scarce as their “heavy” cousins.
Weaker economic growth in China is also weighing on the market since the world’s second largest economy not only produces over 90 percent of global rare earths, but is the biggest consumer of the materials.
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