Why have rare earth prices fallen?

Caroline Messecar, strategic markets editor for Fastmarkets, explores the world of rare earth prices in her opinion piece for ‘The Crucible’ titled ‘Why have rare earth prices fallen?’

Messecar scrutinizes the nearly 70% collapse in rare earth prices over a span of two years, prompting her to question the underlying factors driving this drastic decline.

Key highlights from the article include:

  • An exploration of why investors are struggling to predict rare earth prices despite their significant impact on industries like automotive and energy
  • Comments from industry figures like Amanda Lacaze, Jim Litinsky, and Rahim Suleman highlight the challenge of forecasting rare earth prices accurately
  • The fact that forecasting remains difficult, leading Messecar to analyze potential price drivers
  • Messecar considers factors such as a pause in EV demand, a global economic downturn, market volatility, and geopolitical tensions
  • Weaker EV demand may have influenced prices, the decline cannot solely be attributed to it due to the widespread use of rare earth magnets in various industries
  • A discussion about the global economic downturn as a potential driver, citing oversupply in the rare earth market and increased production quotas in China
  • Questions about whether the economic downturn alone could account for such a significant price drop
  • Market volatility, including a 300% increase in NdPr oxide prices between March 2020 and March 2022, is also examined, considering factors like COVID-19, inflation and industry consolidation
  • The role of geopolitics, particularly in the US-China trade war, as a factor influencing prices

Read the full article here: Why have rare earth prices fallen? – MMTA

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