Tsuen Wan International: Heavy rare earths set to continue price climb on further China control.

June 20, 2011 - PRLog -- News that the Chinese government intends to further centralise control over mining assets has driven heavy rare earth element prices into new territory in June according to leading trade publication Industrial Minerals.

Dysprosium oxide, used in the manufacture of magnets, lasers and nuclear reactors, has shot up from around $700-$740 per kg, to a new high of $1,470 per kg, almost double the price at the start of the month, Tsuen Wan International data shows.


Europium oxide, used for its phosphorescent properties found in plasma TVs, smart phones, and energy saving light bulbs, climbed from between $1,260-$1,300 per kg, to a new record high of $3,400 per kg – a 142% rise in the same period.


“Prices of heavy rare earths have surged since the start of the month as the Chinese government announced further plans to centralise control over the country’s mining assets,” Mark Watts, Industrial Minerals online news editor informed Tsuen Wan International.


“Heavy rare earths, which are largely mined in the southern Chinese province of Jiangxi, have been subject to tighter environmental controls and a government crackdown on historically widespread illegal mining,” he added.


Prices for rare earth elements (REE’s) have been climbing continuously since 2010, but it is the consistent sharp rate of the climb for these prices which is causing concern.

“REE production and consumption has been around for the last few decades, but there are two primary factors have changed the supply/demand dynamic of this niche mineral market sector in the last few years,” Mike O’Driscoll, editor of Industrial Minerals told Tsuen Wan International.
“Demand for REE is increasing in applications that are less esoteric than say 20 years ago. And China, which is the world’s main commercially developed REE source of supply, is reducing exports and increasing its consumption of REE,” he added.


Other factors driving these sharp climbs include a lack of alternative REE supply outside China – certainly in the short term as a numerous international REE projects struggle to come to fruition, and forecast estimates of a projected 48% increase in world REE demand to 185,000 tonnes by as early as 2015. “This includes specific shortages of dysprosium and neodymium, so it is not surprising that prices of rising at such a rate.”

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Tsuen Wan International is a leading independent investment company, based in the heart of Hong Kong. Tsuen Wan International offers a variety of investment products for institutional, corporate and high net worth investors in equity debt and FX markets.