Rare Earth International Market Prices in Sharp Decline

Rare earth market prices are decreasing in international market. Market prices of cerium oxide and lanthanum oxide decreased to less than US$ 100 per kilogram and hit the lowest in five months. Cerium oxide is mainly used as polisher for liquid crystal panels while lanthanum oxide is mainly used for optical glass. Main material for permanent magnet applied to motor, Metallic neodymium price also decreased by slightly more than 20% in September.

International market prices of cerium oxide and lanthanum oxide is US$ 92.5 per kg. Both prices decreased by US$ 19 from a week ago. Lanthanum oxide price hit current peak at US$ 173.5 in mid August. Cerium oxide price dropped by 42% from current peak of US$ 159.5.

These market prices had surged to reflect Chinese government’s policy to restrict rare earth export license or to be affected by China’s de fact embargo of rare earths against Japan after political problem in September 2010. However, Japanese rare metal trader pointed out the supply isn’t tight any more since the users have reduced material procurement volume or raw material production operations will start soon in other countries than China.

Metallic neodymium market price is decreasing to US$ 350 per kg from US$ 450 in last week. Speculative traders and exporters seem to be moving to profit-taking sales of their inventories when supply shortage has been eased. There seems abundant neodymium inventory for magnetic alloy and then sales offers are currently increasing against Japanese importers.