Rare Earth Takes The World By Storm

- November 17th, 2009

The world has woken up to rare earth’s inherent potential given its intrinsic usage in several applications. Global consumption was around $1.5 billion to $2 billion in 2008, forecast to grow by 65% by 2012 from 2008 levels.   It is a tiny and illiquid industry, with global demand of around 135,000 tonnes a year. … Continued

The world has woken up to rare earth’s inherent potential given its intrinsic usage in several applications. Global consumption was around $1.5 billion to $2 billion in 2008, forecast to grow by 65% by 2012 from 2008 levels.

 

It is a tiny and illiquid industry, with global demand of around 135,000 tonnes a year. And its elements have unpronounceable names like terbium, dysprosium, holmium, cerium, europeum, and Ytterbium, to name just a few.

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6 responses to “Rare Earth Takes The World By Storm

  1. In my statement that batteries will “provide a much needed new market,” It means that manganese is tied in to the steel market, just as with many base metals used in alloys, like molybdenum. Therefore the manganese market is dependent and price is tied to the whims of the steel market almost entirely.

    Diversification is a good thing, by increasing market size, and demand, the rising price of manganese should lead to inflows of investments in mining companies such as American Manganese and others, increasing supply to meet the new demand. At least according to economic fundamentals. These projects do take time to catch up and reach homeostasis.

    For example, as China’s economy slows, and steel demand for large infrastructure projects decrease, manganese will decrease as well. However, if manganese takes off as a battery material in consumer good that will still be in high demand regardless of large infrastructure projects, the demand for manganese will remain high, therefore mitigating the impact of slowing steel production.

    Does this help clarify?

  2. In my statement that batteries will “provide a much needed new market,” It means that manganese is tied in to the steel market, just as with many base metals used in alloys, like molybdenum. Therefore the manganese market is dependent and price is tied to the whims of the steel market almost entirely.

    Diversification is a good thing, by increasing market size, and demand, the rising price of manganese should lead to inflows of investments in mining companies such as American Manganese and others, increasing supply to meet the new demand. At least according to economic fundamentals. These projects do take time to catch up and reach homeostasis.

    For example, as China’s economy slows, and steel demand for large infrastructure projects decrease, manganese will decrease as well. However, if manganese takes off as a battery material in consumer good that will still be in high demand regardless of large infrastructure projects, the demand for manganese will remain high, therefore mitigating the impact of slowing steel production.

    Does this help clarify?

  3. you start off by saying that it willl provide a much needed new market for manganese. my impression is that emm is in very short supply and that supply is almost entirely in china. did you mean to say it the way you did? please explain. i am aware and exited about what the powder will do to prices.

    david morris cfa

  4. you start off by saying that it willl provide a much needed new market for manganese. my impression is that emm is in very short supply and that supply is almost entirely in china. did you mean to say it the way you did? please explain. i am aware and exited about what the powder will do to prices.

    david morris cfa

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