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The price of rare earth products has increased significantly over the past 3 years due to the constraints placed on mining, processing and export by the Chinese authorities. This is a trend that is likely to be exacerbated in the coming years despite a temporary decline during the global financial crisis.
Within days of the China Ministry of Commerce announcing a drastic cut in the rare earths export quotas in July 2010 pricing for all rare earth oxides has continued to rise above historical highs. Given that rare earths account for only a minor portion of the cost but a crucial component in hi-tech applications price rises are expected to continue. The impact of ever-tightening supply issues is evident in the price table below.
Since the strong price increases commenced in mid-2010 there has been a divergence in pricing between China export prices, as reported below, and the China domestic prices of rare earth oxides. However as 2011 has progressed China domestic pricing has consistently increased at a faster rate, closing the gap between domestic and export pricing. This process indicates a strong market with robust demand both within and outside of China.
Pricing for rare earth oxides has outstripped that of rare earth carbonates that have remained unchanged since mid-2010 with only modest increases prior to 2010. This further strengthens the case for the production of rare earth oxides to realise greater value and price achievement compared to rare earth carbonates.
Historical Pricing
| |
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2006* |
2007* |
2008* |
2009* |
2010* |
2011* |
| Cerium oxide 99% |
US$/kg |
1.49 |
2.50 |
4.35 |
4.50 |
61.00 |
106.13 |
| Lanthanum oxide 99% |
US$/kg |
1.76 |
3.10 |
7.75 |
6.25 |
60.00 |
100.18 |
| Praseodymium oxide 99% |
US$/kg |
13.59 |
28.00 |
27.00 |
14.00 |
86.50 |
201.17 |
| Neodymium oxide 99% |
US$/kg |
14.79 |
29.00 |
27.00 |
14.00 |
87.00 |
238.92 |
| Dysprosium oxide 99% |
US$/kg |
69.42 |
85.00 |
110.00 |
100.00 |
295.00 |
1485.58 |
| Europium oxide 99.9% |
US$/kg |
239.17 |
300.00 |
475.00 |
450.00 |
630.00 |
2961.25 |
| Terbium oxide 99% |
US$/kg |
459.50 |
555.00 |
650.00 |
350.00 |
605.00 |
2423.33 |
| Average Nolans value |
US$/kg |
6.59 |
13.32 |
11.43 |
11.17 |
70.52 |
157.03 |
|
2011 Pricing
| |
|
JUNE 2011* |
JULY 2011* |
AUG 2011** |
SEPT 2011* |
OCT
2011** |
NOV 2011* |
DEC 2011* |
JAN 17 2012* |
JAN 19 2012* |
| Cerium oxide 99% |
US$/kg |
149.00 |
158.00 |
158.00 |
71.00 |
59.00 |
54.00 |
42.50 |
42.50 |
42.50 |
| Lanthanum oxide 99% |
US$/kg |
148.00 |
151.50 |
171.50 |
79.00 |
64.00 |
64.00 |
51.00 |
51.00 |
51.00 |
| Praseodymium oxide 99% |
US$/kg |
238.50 |
248.50 |
248.50 |
218.50 |
218.50 |
208.50 |
165.00 |
165.00 |
165.00 |
| Neodymium oxide 99% |
US$/kg |
317.50 |
317.50 |
337.50 |
262.50 |
242.50 |
235.00 |
195.00 |
195.00 |
195.00 |
| Dysprosium oxide 99% |
US$/kg |
1485.00 |
2510.00 |
2840.00 |
2290.00 |
2110.00 |
1960.00 |
1410.00 |
1410.00 |
1410.00 |
| Europium oxide 99.9% |
US$/kg |
2,990.00 |
5870.00 |
5870.00 |
3790.00 |
3790.00 |
3790.00 |
3790.00 |
3,790.00 |
3790.00 |
| Terbium oxide 99% |
US$/kg |
2,910.00 |
4210.00 |
4510.00 |
3210.00 |
3010.00 |
2810.00 |
2810.00 |
2810.00 |
2810.00 |
| Average Nolans value |
US$/kg |
207.53 |
229.22 |
238.90 |
149.20 |
135.05 |
129.04 |
107.35 |
107.35 |
107.35 |
|
|
*Source: Metal Pages annual price average for the respective period
**Source: Metal Pages final reported month end prices
Note:
1. Prices are for a nominal 99% REO product, except for Europium which is reported at 99.9%
2. The Nolans mix value includes the full REO product range value of the deposit
3. The monthly price figures represent the last quoted price level for the month
4. Prices based on the mid-point of the range provided by Metal Pages |
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