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A rise in rare earth prices has been forecast by market analysts later this year, but those gains could be stalled by excess supply in the space, Reuters reported.
A rise in rare earth prices has been forecast by market analysts later this year, but those gains could be stalled by excess supply in the space, Reuters reported.
As quoted in the publication:
Some rare earths could get support from the impact of China’s revised resource tax, which is now based on value rather than weight, and a crackdown on smuggling networks, which may have shipped as much as 40 000 t last year, according to industry sources.
“The change in the resource tax was very much aimed at the fact that they’re trying to limit illegal mining,” said Melanie Debono with consultancy Capital Economics in London, who forecasts prices rising in the second half of the year.
“The Chinese government has also changed the structure of the (Chinese) industry so there are just six large groups producing rare earths.”
Analysts said prices most likely to see gains were the “heavier” rare earths, especially elements used for permanent magnets, such as neodymium oxide and praseodymium oxide.