Rare Earth International Market Prices Maintain Downward

International market prices maintain downward for rare earths. Inventory holders continue dumping after Chinese government implemented new scheme to obligate attachment of designated vouchers for rare earth trading, though they had held inventories with speculative expectations. At the same time, market participants’ concerns are currently relieved about rare earth supply along with progress of resource development projects around the world. Actual demand is also weak for rare earths under global economic stagnation.

International market price of metallic dysprosium is presently around US$ 2,400 per kilogram, according to survey by Japan Metal Bulletin. Metallic neodymium market price seems around US$ 215 per kg. Both of the prices have lowered by about 15% since the beginning of this year. Neodymium is a main material for permanent rare earth magnets adopted to motors inside electric vehicles or energy saving home appliances. Dysprosium is added to rare earth magnets to improve heat resistance.

Cerium oxide market price lowered by 30% to around US$ 37.5 per kg from the beginning of this year, which is used to polish glasses of liquid crystal panels or hard discs. Lanthanum oxide market price downed by 35-40% to around US$ 40.5 per kg, which is used for optical glasses or dielectrics.

Market prices have almost quartered for cerium oxide and lanthanum oxide while nearly halved for metallic neodymium compared with the recent peak in mid 2011. Metallic dysprosium market price also dropped by 40%.

Meanwhile, the price down is relatively limited for middle and heavy rare earths including dysprosium, production of those which is concentrated in South China. Some of Japanese traders show an expectation the market price might upturn toward 2Q 2012.