Why The Rare Earths Price Index Spiked

The monthly Rare Earths MMI® took the biggest jump of any of the index readings, moving from a paltry 29 in July to 37 in August, on the back of big upward price movements for all 14 metals and oxides that comprise rare earth metals index – see the breakdown of metal price movements below.

Dudley Kingsnorth, a noted rare earth metals analyst, attributes the improved rare earth price levels to several factors including: rising demand for automation technology (and the rare earth metals that support it, such as: neodymium, dysprosium, europium and cerium), as well as China’s stop to new mining exploration within China and a curb on mining licenses.

The other big issue with rare earth prices relates to the fact that other global producers outside of China have a greater ability to impact pricing.

Companies like Molycorp and Lynas Corp. supply many of these metals as well. Whether or not the rare earth metals sector will place itself fully on an upward price trend remains to be seen.

Which REEs Rose The Most?
The price of dysprosium oxide rose 72.4 percent over the past month. The price of yttria rose 47.6 percent after falling the previous month.

The price of terbium oxide finished the month 37.9 percent higher. This was the second straight month of declines. The price of neodymium oxide climbed 29.4 percent. The price of praseodymium oxide rose 26.7 percent over the past month, the second straight month of gains. The price of praseodymium neodymium oxide increased 23.6 percent.

For the second month in a row, the price of europium oxide increased, rising 21.1 percent over the past month. After dropping the previous month, the price of neodymium prices rose 20.9 percent. The price of yttrium closed the month up 3.9 percent. The price of lanthanum oxide rose 3.7 percent after falling the previous month. After dropping the previous month, the price of cerium oxide prices rose 3.6 percent.

The Rare Earths MMI® collects and weights 14 global rare earth metal price points to provide a unique view into rare earth metal price trends over a 30-day period. For more information on the Rare Earths MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.