Rare Earth International Market Prices Remarkably Weakening

International rare earth market prices are weak. Metallic neodymium market price is around US$ 250 per kilogram, which is the main material for neodymium-iron-boron magnet applied to motors of electric vehicles and energy saving home appliances. The price has decreased by more than 40% since the recent peak in summer 2011. The market price of metallic dysprosium, the major additive for rare earth magnet, is currently around US$ 2,800 per kg, which is 30% lower than the latest peak. Other rare earth prices are also decreasing.

The market price is around US$ 54 per kg for cerium oxide, used as polishing agent for liquid crystal panels and hard discs. The price dropped to one third level compared with the peak of four months ago. The supply instability has eased when new ore mountains are scheduled to enter operations soon in other areas than China, involving U.S. Molycorp’s Mountain Pass starting commercial operation in 2012.

Market prices had kept relatively stable for magnet materials including metallic neodymium and metallic dysprosium. However, the prices are widely weakening in present days due to easier supply. It is also said that Chinese government’s designated voucher system has also diminished the market prices.

Chinese government recently announced the new policy to obligate attachment of designated vouchers for rare earth trading. Since rare earth trading becomes difficult or the trade price significantly decreases without the vouchers, the inventory holders or the smugglers are said to be moving to sales realization.