Rare Earth International Market Prices in Strong Uptrend

Rare earth market prices are strongly surging. Metallic neodymium price is currently around US$ 275 per kilogram, which is the main material for neodymium-iron-boron magnet. The price has jumped to 3.7 times since the beginning of this year. Metallic dysprosium price has more than doubled to around US$ 890 per kg this year, which is the major additive for rare earth magnet. The price trend seems to maintain strong for a while.

Chinese government set the country’s export license (EL) quota of rare earth at total 14,446 tonnes for the yearly first EL in 2011, authorized to 31 exporters including foreign capital companies. The volume decreased by 11% compared with the yearly first EL quota in 2010 along the government’s official announcement while the actual volume decreased by 35% including the quota for foreign capital companies that was not officially announced in 2010.

The annual EL quota was reduced to around 30,000 tonnes in 2010 from 50,000 tonnes in 2009. Chinese government has strengthened regulations on its rare earth export to secure the country’s own raw material resources and to meet the strong demand growth for rare earth in the country. The government also targets to prevent environmental pollution by illegal development of rare earth mines in the country.

Meanwhile, demand for rare earth is globally increasing. China’s export regulation policy is causing steep upsurge of rare earth international market prices.