Rare Earth Market Price Declines under Loose Supply

Rare earth price is weakening at the international market. The supply is recently increasing in China, the world largest producer of rare earths. Meanwhile demand for permanent magnet is slowing down, the main application of rare earths. Rare earth supply is loosing. Some dealers seem selling their inventories at even cheaper prices. The international price would decline more.The international price of metallic neodymium, the main material for neodymium-iron-boron magnet, is currently around US$ 37 per kilogram, decreasing by more than 10% in a month. The international market price of didymium (metallic praseodymium-neodymium) is also declining by more than 10% in a month to around US$ 34 per kg.A source said Japanese magnet market has slowed down since mid June of this year. Magnet makers are decreasing rare earth procurement when the international market seems to down more and the demand for permanent magnet is weakening.Chinese government minimized export license volume of rare earths by 20% year-on-year for 2008. However, neodymium and didymium production is increasing in the country when the market price has stayed high. A source pointed out some dealers in Inner Mongolia are selling rare earth inventories at cheaper prices.