CHINA – RARE EARTHS’ PRICE INCREASING

CHINA – RARE EARTHS’ PRICE INCREASING

Prices of the main rare earths in China have been rising rapidly in 2021. Thanks to an intact supply chain system and to a strong prevention and control capability of pandemics, China’s manufacturing industry rebounded sharply in the second half of 2020. China’s Non-ferrous Metal Association states that this trend is expected to continue throughout 2021.
At the beginning of 2020, metals manufacturers were not very optimistic about the year’s perspective. But the downstream demand for magnetic materials increased significantly in the second half of the year. The appliance industry has been growing a lot and the demand for new electric vehicles and wind turbines has risen dramatically, leading to a delirious increase of commodity prices in the short term.
According to the China Securities Journal spot rare earths supply is scarce, and the pace of suppliers’ deliveries has slowed. Rare earth prices are expected to have a long-term growth trend in 2021.
The greatest demand concerns Neodymium Iron Boron (https://www.mpimagnets.com/strong-industrial-sintered-neodymium-magnets-mpn-ndfeb/ ) since the downstream demand mainly for cars and wind turbines, which entails massive use of this component, continues to grow.
The strict control of the rare earths’ offer remains unchanged and the industrial chain’s demand will continue to increase in the near future as well as the prices of rare earths.

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