via Metal miner
On a monthly basis, rare earth metals saw new price lows not seen since September 2020. While neodymium oxide and praseodymium oxide saw the largest declines of all metal components. Rare Earth Elements MMI (Monthly Metal Index)The index decreased by 5.08% overall. But with price points approaching pre-pandemic lows, the index may have finally found a bottom after six straight months of declines.
Rare earth metals are near pre-pandemic price lows
newly Standard & Poor’s Global The article shed some light on the annual decline in rare earth metal prices. According to Australian company Lynas Rare Earths, a large rare earths producer, the average selling price of neodymium and praseodymium fell 32% year-on-year to A$35.50 per kilogram in the July-December 2023 period.
Another article about Oil price.com He noted that in March 2024, terbium oxide and neodymium oxide reached their lowest levels since late 2020. Meanwhile, MetalMiner’s MMI showed similar data: the cost of commercial rare earth elements is approaching pre-pandemic price lows, and has similarly reached the lowest price for it. point since September 26, 2023.
Source: MetalMiner Insights, which keeps you ahead of the curve, allowing you to anticipate price changes and Take advantage of unseen opportunities.
According to UBS analysts, some cost support continues to develop at current price levels given a history of long periods of falling prices. However, developing conviction about permanence Price recovery It’s still difficult. Furthermore, Lynas Rare Earths recently announced a significant decline in sales and profits in its first quarter 2024 results.
Experts predict that rare earth prices will need to grow significantly to support the development of new rare earth projects, which typically require higher prices to be economically viable. Despite the recent obstacles.
Challenges facing rare earth metal prices and market recovery
The abundance of rare earth metals is one of the main reasons for the decline in prices. According to a study conducted by the US Geological Survey, the year 2023 witnessed the release of… Rare earth Metals rise 10% worldwide, outpacing demand growth. Due to the severe downward pressure on prices caused by this increase, producers find it more difficult to maintain their profits.
Furthermore, demand for many rare earth-based items, such as industrial machinery, continues to decline due to global economic conditions. deflation.
Trade disputes and technological progress
A small number of countries contain a disproportionate amount of rare earth elements, with China producing the majority of rare earth metals worldwide. Due to supply chain weaknesses and trade conflicts resulting from this geopolitical focus, rare earths continue to grow disproportionately. Market dynamics.
Moreover, the world’s two largest economies have recently intensified their competition, resulting in trade and tax barriers affecting the global market for rare earth elements. This may pose challenges for producers and consumers who need to make long-term plans due to the unpredictability and volatility that these geopolitical tensions may cause.
at the same time, European Commission It was stated that the possibility of replacing rare earth elements with alternative materials and advances in new technologies may pose obstacles to the recovery of rare earth metal prices. This could lead to decreased demand and increased price pressure if scientists and producers actively search for ways to use less rare earth elements or find viable alternatives.
Written by Jennifer Curry
More best reads from Oilprice.com:
#Trade #disputes #technological #advances #affecting #rare #earth #market #Oilprice.com
