Dysprosium the Rare Earth Metal of the Month, as Price Index Holds Steady

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Minor Metals, Premium

Here’s What Happened

  • The Rare Earths MMI held steady for the month of May at a value of 19.
  • That makes two straight months at 19 for this sub-index, which has slowly crept up over the past quarter and now stands at its highest since August 2015 — back when the Dow had its worst month in 5 years.
  • Several Chinese rare earths price points fell over the month, with increases from neodymium oxide, europium oxide and dysprosium oxide doing their part to keep the ship steady overall.

What’s Going On in the Background?

  • When was the last time you heard the term “stalking horse bidder?” Turns out someone loved Molycorp and its Mountain Pass mine in California, the only source of rare earths production in this hemisphere, enough to buy it. As MetalMiner reported, ERP Strategic Minerals, LLC, part of the ERP Group of companies, has agreed to purchase the salient assets and surface property rights.
  • As leading REE analyst Jack Lifton commented on our story, it would essentially be cheaper to build a new plant in Tanzania rather than reboot existing operations at Mountain Pass. (Check out the story and the comment thread here.)
  • As for rare earths end-use markets, the clean energy and other high-tech applications that rely on REEs aren’t going anywhere anytime soon.

What Metal Buyers Should Look Out For

  • According to this InvestorIntel article, buyers may need to keep a closer eye on dysprosium, used in high-tech industrial magnets, since Northern Minerals Ltd is well on its way to starting the largest dysprosium production operation outside China.

Key Price Movers and Shakers

  • The dysprosium oxide price rose 1.7% to nearly $180 per kilogram.
  • Neodymium oxide increased 1.8% as well, ending at $41,360 per metric ton.
  • Yttrium and terbium oxide prices, however, dipped slightly to start the month of May.

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