Rare Earths Outlook: China Minmetals, Chalco Stock Up, Not Prices

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chart of historical rare earths prices trends september 2013

Despite some big jumps for neodymium and neodymium oxide prices, and some dispiriting news for Lynas Corp. and Baotou Steel Rare-Earths, the monthly Rare Earths MMI® held steady this past month. It remains the poorest performing index of the series.

Compare with last month’s trends – here’s our free August MMI® Report.

“The challenge with rare earth prices for producers – and this will come as no surprise to industry watchers – involves China’s policies in general around rare earth metals and that country’s ability to manage two leaky holes,” said Lisa Reisman, managing editor of MetalMiner, “and those are export quotas and restrictions on illegal production and crack-downs on illegal rare earth metal production.”

“Though stocks of certain Chinese companies shot up on the news that China has reaffirmed its crackdown on illegal production (China Minmetals Rare Earth Co. and Aluminum Corp. of China Ltd),” Reisman continued, “the government has not proven itself effective in limiting production – or exports, for that matter.”

We will continue to keep a close eye on both of these developments to see if these policies ultimately provide a solid floor to rare earth metal prices.

Dysprosium Oxide Also an Index Factor

For the second month in a row, the price of neodymium increased, rising 10 percent over the past month. Meanwhile, the price of neodymium oxide rose 10.7 percent over the past month, the second straight month of gains.

Following a 12 percent decline in price, dysprosium oxide finished the month with its tail between its legs.

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Rare earth carbonate remained relatively unchanged. Lanthanum oxide experienced a pretty flat month. Prices for cerium oxide remained constant, and “consistent” was the name of the game for samarium oxide as well. Also in this boat: yttria, yttrium, and terbium metal.

Don’t forget to read August 2013 MMI analysis before September’s full report comes out next week!

The Rare Earths MMI® collects and weights 14 global rare earth metal price points to provide a unique view into rare earth metal price trends over a 30-day period. For more information on the Rare Earths MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.

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