China’s Rare-Earth Prices Spike as Power Crisis Impacts Supplies
China’s Rare-Earth Prices Spike as Power Crisis Impacts Supplies
(Bloomberg) -- Rare-earth prices are spiking in China, with the grades used to make permanent magnets surging to their highest level in over a decade amid supply tightness.
Prices of praseodymium-neodymium oxide, or NdPr -- two of the 17 rare earth elements that are used in NdFeB magnets -- spiked to 735,000 yuan ($115,000) a metric ton as of Thursday, the highest since November 2011, according to data from Shanghai Steelhome E-Commerce. Prices have almost doubled this year.
A domestic shortage of rare earths is looming as China, which accounts for 70% of global production, uses quotas to preserve the strategic material used in everything from phones to computers to new-energy vehicles. The nation’s power shortage has also exacerbated supply disruptions, while surging commodity prices are increasing production costs.
Still, the price surge has deterred some demand, with magnets producers hesitating to make purchases, researcher Mysteel said in a note.
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With assistance from Bloomberg