Monthly Rare Earth Index Planning for a Bull Market

by on

The monthly Rare Earths MMI® registered a value of 38 in November, on par with October’s value.


Earlier this month we discussed some specific price trends occurring within our monthly rare earth metal index. Specifically, we called out that although the rare earth metal index as a whole has performed rather abysmally (after all, it ranks last among the 10 indexes tracked by MetalMiner), some of the individual metals that comprise the index have retained price support – specifically neodymium, neodymium oxide, terbium, europium, and dysprosium.

That post, which also appeared on Seeking Alpha (a syndicator of MetalMiner content), generated a slew of comments. But some of the most interesting (or rather, the most novel because we all know how much China controls the market for rare earth metals) involved security of supply used as a competitive advantage.

To wit, one commenter called out market leaders: “The Japanese may be the first to realize that it makes sense for companies that rely upon rare earths to invest in companies that produce rare earths and the needed components derived from rare earths. The acquiring companies that have internally secured such supplies will make higher profits by selling the finished products with superior characteristics derived from their rare earth content. Fluctuations in the price of rare earths would have little relevance; reliable access is all that would matter.”

Find out more about MetalMiner’s price forecasting capability to help your metal sourcing efforts.

We need only remember some of the supply shortages during the rare earth metal price highs of a few years ago.

Nonetheless, bear markets — and we can officially call this rare earths market one of those — make for great times to plan an offensive strategy.

Nearly all of the remaining metals within the Rare Earth MMI® held constant. The value of neodymium oxide weakened by 2.8 percent this month. Prices for praseodymium oxide and praseodymium neodymium oxide notched up ever so slightly (less than one percent).

* Get the complete prices every day on the MetalMiner IndX℠

Yttrium remained unchanged. The price of neodymium held steady above $73,000 per metric ton last month. Last month was consistent for yttria, which did not move. Rare earth carbonate held pat last month. Praseodymium neodymium oxide experienced a flat month. Samarium oxide traded sideways last month. Terbium oxide did not budge the entire month. Dysprosium oxide traded sideways last month. Lanthanum oxide remained unchanged. Cerium oxide did not budge the entire month. Last month was consistent for europium oxide, which did not move. The price of terbium metal held steady.

Don’t forget to read the October 2013 MMI analysis before November’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.