Rises in Chinese rare earths prices (especially PrNd) are expected to continue in the third quarter due to growing physical demand from the magnetic material sector and caused by anti-pollution checks as well as the government’s tighter regulations on illegal production.
Enforcement of these policies by the Chinese Government is expected to remain in place in the long run.
Demand has also moved prices, but to a much lesser extent than Chinese government regulations. Production of magnetic materials has risen in 2017 year on the back of developments in industrial intelligence, automotive and other electronic industries, which all require permanent magnets.It is estimated, that rare earths prices could receive a further boost from possible Chinese government-led stockpiles for 9,000t of material in the second half of this year and a public bidding conference is due in July, according to market players.
It is the steepest price increase since the erratic market movement in 2011. It is to be hoped, that all involved players this time refrain from speculation, so that the industry can continue to develop in a healthy way.