Categories: Energy / General Market Commentary
Topics: General Energy / General Market Commentary

China to become net importer of some rare earths

China to become net importer of some rare earths

China produces more than 85% of the global supply of rare earths and the country is also the largest consumer.

After hitting the stratosphere in 2011 prices have been decimated. And a surge in exports from China since a ruling by the WTO deemed the country's export quotas illegal and particularly after the lifting of exports tariffs in May last year, caused a further slide.

The price index for the 17 elements compiled by China's Rare Earth Industry Association hit six-year lows hit in September 2015 and have been bobbing around these levels since then.

A new report by Adamas Intelligence, a rare metal research firm, says since 2011, the market has suffered large-scale demand destruction.

By 2025 China’s domestic demand for neodymium oxide for permanent magnets alone is poised to exceed global production
According to the Adamas outlook for rare earth demand from 2016 through 2025 over the past five years upwards of 30,000 tonnes of annual rare earth oxide demand were lost due end-users’ growing concerns over supply security. On top of that more than 20,000 tonnes were lost as a result of the ongoing phase out of several mature technologies, such as fluorescent lamps, NiMH batteries, and hard disk drives used in PCs.

According to the authors following the lengthy and painful adjustment, the REE market will return to strong global demand growth for a number of rare earth elements including neodymium, praseodymium, dysprosium, and lanthanum. The resulting rise in price will help "sustain the profitability and growth of today’s dominant producers, and incentivize continued investment in exploration and resource development globally":

To continue reading please click link http://www.mining.com/china-become-net-importer-rare-earths/