Why have rare earth prices fallen?

Caroline Messecar, strategic markets editor for Fastmarkets, explores the world of rare earth prices in her opinion piece for ‘The Crucible’ titled ‘Why have rare earth prices fallen?’

Messecar scrutinizes the nearly 70% collapse in rare earth prices over a span of two years, prompting her to question the underlying factors driving this drastic decline.

Key highlights from the article include:

  • An exploration of why investors are struggling to predict rare earth prices despite their significant impact on industries like automotive and energy
  • Comments from industry figures like Amanda Lacaze, Jim Litinsky, and Rahim Suleman highlight the challenge of forecasting rare earth prices accurately
  • The fact that forecasting remains difficult, leading Messecar to analyze potential price drivers
  • Messecar considers factors such as a pause in EV demand, a global economic downturn, market volatility, and geopolitical tensions
  • Weaker EV demand may have influenced prices, the decline cannot solely be attributed to it due to the widespread use of rare earth magnets in various industries
  • A discussion about the global economic downturn as a potential driver, citing oversupply in the rare earth market and increased production quotas in China
  • Questions about whether the economic downturn alone could account for such a significant price drop
  • Market volatility, including a 300% increase in NdPr oxide prices between March 2020 and March 2022, is also examined, considering factors like COVID-19, inflation and industry consolidation
  • The role of geopolitics, particularly in the US-China trade war, as a factor influencing prices

Read the full article here: Why have rare earth prices fallen? – MMTA

Find out about our full suite of rare earth prices and keep to date with all the rare earth news and insights here.

What to read next
African material will remain part of the tantalum supply chain regardless of the lithium market, according to Ian Margerison, executive marketing manager at the Tantalum-Niobium International Study Center (TIC).
Sluggish demand for China’s graphite flake fines in both the batteries’ anode and refractories sectors has led to ongoing output cuts among flake miners and processors, which has further tightened the supply of large flake graphite in China, sources told Fastmarkets.
The growth in Chinese shipments of batteries for energy storage systems (ESS) is far outstripping the growth in deliveries of batteries for electric vehicles (EVs), sources told Fastmarkets in the week to Friday November 1.
China and India are ramping up electrical steel production through new joint ventures and acquisitions to meet rising global demand and sustainability goals.
UK Chancellor of the Exchequer Rachel Reeves has confirmed that fuel duty will not rise in 2025, keeping the previous 5 pence-per-liter discount in place.
After a consultation period, Fastmarkets has discontinued the price due to a lack of liquidity and production of the commodity. All short-term forecasts associated with this price produced by the Fastmarkets research team, if any, have also been discontinued. If you have any comments on the discontinuation of this price, please contact Zihao Li by email […]