Rare Earths Weekly
LONDON (Metal-Pages) 02-Oct-09. Despite China's reassurances that it will not be cutting off supply of rare earths, concerns persist in the West about a future supply squeeze.
Some of the prospective producers and US consumers have organised themselves into an industry body, Rare Earth Industry and Technology Association (REITA), to look after common interests.
REITA's members include Molycorp Minerals, which is restarting rare earth production at Mountain Pass, the US's only rare earth mine at present, plus General Electric, Arnold Magnetic Technologies Corporation, Electron Energy Corporation, Colorado School of Mines and Rare Earth industry analyst Jack Lifton.
In addition the United States Magnet Materials Association (USMMA) has been joined this week by a new member, Thorium Energy, Inc in a move which USMMA said expands the coalition’s focus to include rare earth materials and the rare earth magnet supply chain. A September 2009 report by the USGS confirmed that Thorium Energy holds 90% of rare earth resources in Idaho’s and Montana’s Lemhi Pass.
Jack Lifton, who acts as a consultant to Thorium Energy, and also other prospective rare earths producers, Avalon and Great Western Minerals, predicted that by 2015 China will become a net importer of rare earths, as its output, which has been around 120,000 tpy in recent years will be just enough to meet its own demand. That the US is worried is clear from the fact that the US Defense Metals Technology Center, founded by the Congress two years go, at its inaugural conference next April will focus on the importance of maintaining domestic sources of specialty metals and materials that impact national security - rare earths among these. Molycorp Minerals will be among the speakers.
|
Metal price: Pr-Nd Oxide 99% min China | |||||||||||
|
|
| ||||||||||
The recent flurry of forcasts about a rare erath supply squeeze was sparked just over a month ago by the draft plan presented to the Chinese govenmentby the Ministry of Industry and Information Technology. This set out measures, some already implemented, some proposed, to support development of value added production and conserve China's rare earth resources. China is already working along those lines to limit indisctiminate mining. It has been been steadily reducing the volumes of exports licenced each year, although it looks like due to this year's downturn, exports would in fact be lower than the volumes licenced. However, looking forward MIIT said China's domestic needs are bound to grow, putting a pressure on the heavy rare earths, in particular, which are already in limited supply.
Last week it was revealed that authorities in Baotou imposed a 46,000 tpy limit on mining in the province, and at the same time it emerged that China's sovereign wealth fund, China Investment Corporation is setting up a joint venture with Baotou Steel Group, of which it will fund 80%, to mine and stockpile Baotou rare earths.
Menwhile Australian prospective rare earth producer Lynas Corp, which is developing the Mount Weld resource in Queensland has refused to be stopped in its tracks by the withdrawal of its potential Chinese investor China Nonferrous Metal Mining (Group) Co., Ltd (CNMC). CNMC last week pulled out of the agreement to acquire a stake of more than 50% in Lynas after its plans were blocked by Australia's Foreign Investment Review Board. The company instead launched a fully underwritten equity fundraising of A$450 million (US$393 million) among existing investors, to enable it to resume operations in Australia and the construction of an advanced material plant in Malaysia.
In the Chinese rare earths market, prices for praesodymium-neodymium have moved up again ahead of the National Day holidays which started this week and will run into next week. This has also served to push up pries for separated oxides. Market participants are looking to the end of the holidays for a further recovery in demand and prices for rare earths, and some are laying their hopes on the rumoured state stockpile to be set up for rare earths. There has as yet been no definite annoucement.
PRAESODYMIUM-NEODYMIUM
Offer prices for praseodymium/neodymium oxide have moved further up over ahead of the holidays, although some suppliers reported having concluded little business recently.
Market players told Metal-Pages earlier this week that many suppliers were quoting Rmb 79,000-80,000/tonne ($13,332-13,501/tonne) for the rare earth oxide, up from about Rmb 78,000/tonne ($13,163/tonne) seen in the later part of last week.
A producer in Baotou said some suppliers have been reluctant to sell the oxide at about Rmb 78,000/tonne right now as they predict prices woulld break through Rmb 80,000/tonne after the forthcoming National Day holiday.
Some bullish market participants suggested that prices might hit Rmb 88,000/tonne ($14,851/tonne) in the middle of October.
NEODYMIUM
On the back of the increase in praseodymium/neodymium oxide prices, Chinese suppliers have also raised their offer prices for neodymium oxide this week.
Market players reported that many suppliers are currently quoting Rmb 88,000-89,000/tonne ($14,852-15,020/tonne) for the 99% rare earth oxide, in comparison with contractual prices at either side of Rmb 85,000/tonne ($14,345/tonne) seen over the preceding weeks.
Again, market players are expecting prices to move even higher after the National Day holidays, in line with the anticipated higher prices for Pr-Nd oxide.
A broker who purchased in some neodymium oxide at Rmb 85,000-86,000/tonne ($14,345-14,514/tonne) in mid-September suggested that prices for the rare earth oxide would be likely to reach Rmb 90,000/tonne ($15,189/tonne) next month.
DYSPROSIUM
Chinese dysprosium prices saw little movement this week, although some market players have been bullish about the rare earth market after the holidays, i.e. from mid-October onwards.
Market players told Metal-Pages that transactions for 99% dysprosium oxide have been taking place this week at Rmb 570-580/kg ($105-106/kg), similar to prices seen over the previous week. Some suppliers suggested that prices for the rare earth oxide would keep relatively steady in the near future.
Meanwhile, prices for ferro-dysprosium (Dy 80%) have been holding at about Rmb 610/kg ($107/kg), without change in the past two weeks. Market sources reported that some regular downstream buyers have been steadily purchasing in material.
LANTHANUM
The lanthanum oxide market saw a pick up in activity ahead of the holidays this week, but there has been no change in prices since mid-September.
Market players told Metal-Pages that some larger purchases of lanthanum oxide have been reported in the Chinese market, but prices for the 99% rare earth oxide have been stable, in the range of Rmb 21,000-23,000/tonne ($3,544-3,882/tonne), the level seen in the past few weeks.
A broker noted that prices for lanthanum oxide originating from Jiangxi-based producers was a little lower than prices from northern China, and as a consequence prices at either side of Rmb 20,000/tonne ($3,375/tonne) were also still visible in the market.
PRICE MOVEMENTS
Prices are ex works, VAT duty paid or basis FOB Chinese ports unless otherwise stated. Metal-Pages welcomes feedback from producers, traders and consumers; please email china@metal-pages.com
|
Rare Earth product |
Prices today |
Prices last week |
|
Ce Metal 99% min China |
34000 - 36000 Rmb/mt |
34000 - 36000 Rmb/mt |
|
Ce Metal 99% min FOB China |
7.3 – 7.6 $/kg |
7.3 – 7.6 $/kg |
|
Ce Oxide 99% min China |
16200 - 17200 Rmb/mt |
16200 - 17200 Rmb/mt |
|
Ce Oxide 99% min FOB China |
3500 - 4000 $/mt |
3500 - 4000 $/mt |
|
Dy Metal 99% min China |
770 - 800 Rmb/kg |
770 - 800 Rmb/kg |
|
Dy Metal 99% min FOB China |
140 - 145 $/kg |
140 - 145 $/kg |
|
Dy Oxide 99% min China |
570 - 590 Rmb/kg |
570 - 590 Rmb/kg |
|
Dy Oxide 99% min FOB China |
105 - 110 $/kg |
105 – 110 $/kg |
|
Eu Metal 99% min China |
4300 - 4500 Rmb/kg |
4300 - 4500 Rmb/kg |
|
Eu Metal 99% min FOB China |
770 - 800 $/kg |
770 - 800 $/kg |
|
Eu Oxide 99.9% min China |
2450 - 2550 Rmb/kg |
2450- 2550 Rmb/kg |
|
Eu Oxide 99.9% min FOB China |
470 - 490 $/kg |
470 - 490 $/kg |
|
Gd Metal 99% min China |
75000-85000 Rmb/mt |
75000-85000 Rmb/mt |
|
Gd Metal 99% min FOB China |
18 – 18.5 $/kg |
18 – 18.5 $/kg |
|
Gd Oxide 99% min China |
23500 - 25500 Rmb/mt |
23000 - 24000 Rmb/mt |
|
Gd Oxide 99% min FOB China |
5000 - 5500 $/mt |
5000 - 5500 $/mt |
|
La Metal 99% min China |
40000 - 45000 Rmb/mt |
40000 - 45000 Rmb/mt |
|
La Metal 99% min FOB China |
9.4 – 9.9 $/kg |
9.4 – 9.9 $/kg |
|
La Oxide 99% min China |
20000 - 23000 Rmb/mt |
20000 - 23000 Rmb/mt |
|
La Oxide 99% min FOB China |
4400 - 4900 $/mt |
4400 - 4900 $/mt |
|
Mischmetal La 35% Ce 65% China |
27000 - 28000 Rmb/mt |
27000 - 28000 Rmb/mt |
|
Mischmetal La 35% Ce 65% FOB China |
5.5 – 6 $/kg |
5.5 – 6 $/kg |
|
Mischmetal low Zn and Mg China |
50000 - 53000 Rmb/mt |
50000 - 53000 Rmb/mt |
|
Mischmetal low Zn and Mg FOB China |
11 – 11.5 $/kg |
11 – 11.5 $/kg |
|
Nd Metal 99% min China |
113000 - 118000 Rmb/mt |
113000 - 118000 Rmb/mt |
|
Nd Metal 99% min FOB China |
19.5 – 20.5 $/kg |
19.5 – 20.5 $/kg |
|
Nd Oxide 99% min China |
85000 - 87000 Rmb/mt |
83000-86000 Rmb/mt |
|
Nd Oxide 99% min FOB China |
14000 - 14500 $/mt |
14000 - 14500 $/mt |
|
Pr Metal 99% min China |
110000- 115000 Rmb/mt |
110000-115000 Rmb/mt |
|
Pr Metal 99% min FOB China |
19.3 – 20.3 $/kg |
19.3-20.3 $/kg |
|
Pr Oxide 99% min China |
81000-84000Rmb/mt |
81000-84000 Rmb/mt |
|
Pr Oxide 99% min FOB China |
13500 - 14500 $/mt |
13500-14500 $/mt |
|
Pr-Nd Metal 99% min China |
107000 - 110000 Rmb/mt |
105000-108000 Rmb/mt |
|
Pr-Nd Metal 99% min FOB China |
19.2 – 20.2 $/kg |
19.2-20.2 $/kg |
|
Pr-Nd Oxide 99% min China |
76000-79000 Rmb/mt |
75000 - 78000 Rmb/mt |
|
Pr-Nd Oxide 99% min FOB China |
13000 - 13500 $/mt |
13000 - 13500 $/mt |
|
RECO3 42-45% REO China |
8300 - 8700 Rmb/mt |
8300 - 8700 Rmb/mt |
|
RECO3 42-45% REO FOB China |
3300 - 3800 $/mt |
3300 - 3800 $/mt |
|
Sm Metal 99% min China |
95000 - 105000 Rmb/mt |
95000 - 105000 Rmb/mt |
|
Sm Metal 99% min FOB China |
20.5 - 21 $/kg |
20.5 - 21 $/kg |
|
Sm Oxide 99% min China |
14000 - 15000 Rmb/mt |
14000 - 15000 Rmb/mt |
|
Sm Oxide 99% min FOB China |
4.25 - 4.75 $/kg |
4.25 - 4.75 $/kg |
|
Tb Metal 99% min China |
2500 - 2800 Rmb/kg |
2500 - 2800 Rmb/kg |
|
Tb Metal 99% min FOB China |
520 - 560 $/kg |
520 - 560 $/kg |
|
Tb Oxide 99% min China |
1650 – 1850 Rmb/kg |
1650 - 1850 Rmb/kg |
|
Tb Oxide 99% min FOB China |
340 - 360 $/kg |
340 - 360 $/kg |
|
Y Metal 99.9% min China |
200 - 230 Rmb/kg |
200 - 230 Rmb/kg |
|
Y Metal 99.9% min FOB China |
35 - 45 $/kg |
35 - 45 $/kg |
|
Y Metal 99.9% min FOB China |
38000 - 43000 Rmb/mt |
38000 - 43000 Rmb/mt |
|
Y Oxide 99.999% min China |
10000 - 10500 $/mt |
10000 - 10500 $/mt |