Rare earth prices remained largely steady in China throughout 2016, tracing on an “inverted parabola” trend by hitting bottom level in Q3 while gradually rebounding during Q4. Chinese rare earth prices hovered at low level dampened by the supply surplus in the spot market; market participants lacked in confidence, enhancing the industrial competition. With the advocacy of “Supply-side reform” in China, related department strictly regulated illegal behavior and foul play in the industry, establishing the environmental inspection mechanism and tried to relieve the imbalance situation between market supply and demand by ways of national reserves, etc, seeking for a healthy, sustainable and harmonious development in rare earth industry.
As for exports, the Chinese rare earth export market continued the trend of “Increasing exports but declining average price”. China exported rare earth products in total of 46,749t in 2016, up by 34.2% YOY compared with the figure of 34,832t during 2015. In aspect of average export price, Chinese rare earth export prices stood at only USD7.31/kg in 2016, down by 31.8% YOY from USD10.71/kg during the same period in 2015.
Turning to the international market, the Brexit and depreciating EUR deteriorated the European rare earth market; Fed’s raise in interest rate imposed no stir on the US market; the global economy moved slowly on the way to recovery and consumers in Japan and South Korea still stand and watch for the market.
How will the “illegal rare earth” issue develop? How will the new order be established for rare earth export market? How to stimulate the consumers demand? Will rare earth prices rebound from the bottom in 2017? The 9th International Rare Earth Summit by Asian Metal will be held during 11-12 May 2017 in Shanghai China and all industrial elites are welcomed to the summit for joint discussion on development of the rare earth industry.
