Prices for Rare-Earth metals and consequently prices for Neodymium magnets are keep rising.
Rises in Rare Earths prices (especially PrNd) are expected to continue in the second part of this year due to:
- Chinese government’s antipollution regulation and to tighter policies on illegal production. Enforcement of these programs is expected to remain in place in the long run.
- Rare earths prices could receive a further boost, in the second half of the year, from Chinese Government stockpiles policy. China, has already started the purchase (using state funds) and storage of rare earths for strategic reserves. The initial scale of this stockpile is estimated at 15,000 tons. in national reserves is a relevant amount, considering China's total annual output is said to be roughly 100,000 tons.
- Increased demand has also affected prices, but to a much lesser extent than Chinese Government programs. Production of NdFeB magnets has risen in 2017 on the back of developments in industrial intelligence, automotive and other electronic industries.Will this expected price rises for Rare Earth magnet reach a point where magnetic consumers will begin to think to replace NdFeB magnet technologies with substitute materials?
We know how Rare Earth market is highly vulnerable, currently 97% of mine production originate from China this fact results in an import dependency for most other countries with a substantial share of high tech industries are 100% import reliant.
Most of you will remember when in the 2010, China set in motion a wave of worry around the globe when it dramatically lowered quotas on its exports of rare earth elements, prices for these materials skyrocketed. By mid-2011, a combination of panic and speculation had driven prices at the highest levels, together with the fear that available material was not enough to feed the industry.
During that time, we asked ourselves the same questions, didn’t we?
Seven years after the crisis, there never actually was a shortage in rare earths, and now most are in surplus. Nonetheless, China has consolidated control over its Rare-Earth industry and is positioned to dictate what the world pays for these crucial metals.
The distortion of competition by China has been criticized because both the higher raw materials prices on the world market and the impact of artificial shortages on downstream industries imply a subsidisation of Chinese companies that are of course not subject to the export constraints.
But despite the described unstable situation, magnet-related demand is rising, and inquiries are expected to increase for NdFeB magnets.
The electronics segment is expected to grow of more than 9.0% over the period 2017 to 2024, driven by increasing demand for smartphones, sensors, and electrodynamic speakers.
Energy generation segment is expected to growth rate of over 7.0% over the period 2017 to 2024 owing to increasing use of high-strength magnets in wind turbine generators.
The demand for the product in automotive applications is expected to drive the market in Europe.
What we can really expect now?
To be continued.......
