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.”
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.
The value of neodymium oxide weakened by 2.8 percent this month, settling at $56,595 per metric ton.
Hovering around $45.93 per kilogram for the month, yttrium remained unchanged. Prices for praseodymium oxide remained constant this past month, holding at around $93,505 per metric ton. The price of neodymium held steady around $73,820 per metric ton last month. Last month was consistent for yttria, which did not move from $13,124 per metric ton. Rare earth carbonate held pat last month at $4,511 per metric ton. Praseodymium neodymium oxide experienced a flat month, staying around $58,236 per metric ton. Samarium oxide traded sideways last month, staying around $3,773 per metric ton. At a price of $680.78 per kilogram, terbium oxide did not budge the entire month. Dysprosium oxide traded sideways last month, staying around $352.69 per kilogram. Hovering around $4,593 per metric ton for the month, lanthanum oxide remained unchanged. At a price of $4,675 per metric ton, cerium oxide did not budge the entire month. Last month was consistent for europium oxide, which did not move from $803.82 per kilogram. The price of terbium metal held steady around $803.82 per kilogram last month.
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.