Rare Earths prices start to recover in China
- Metal-Pages report rising prices for Rare Earth Elements in China with Gadolinium prices rising on tight supply.
- A decline in spot cargos is also reported to be raising prices for Praseodymium and Neodymium oxide.
- The Shanghai contract price index for Neodymium oxide is now at Rmb 0.248m up from Rmb 0.224m in August
- The index of REE equities in China is rising on the Shanghai market according to Bloomberg data indicating that the worst may be over for REE prices
- Recent low price levels have disrupted supply cutting production and sending some miners like Tantalus which has just applied for insolvency to the wall.
- The sale of REE stocks in China which were used for ‘irregular’ financing schemes caused REE prices to crash earlier this year as financing schemes offering guaranteed annual returns collapsed with the pull back in REE prices. The collapse of these schemes is thought to have forced the sudden sale of some REE stock into the market.
- Praseodymium is mainly used as an alloying agent with magnesium for aircraft engines.
- Neodymium is best known for its use in improving the strength of permanent magnets, eg in Dyson hand-held vacuum cleaners and EV and hybrid cars.
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