After an assessment conducted by Industrial Minerals, results have shown that the price of heavy rare earth elements (REE) has more than doubled over the last two weeks. Dysprosium oxide, used in magnets, lasers and nuclear reactors, has increased from a level of USD 700-USD 740/kg, to a top level of USD 1470/kg. This amount is double the price level at the beginning of the month. Europium oxide, used for its phosphorescent properties found in plasma TVs, smart phones, and energy saving light bulbs, has increased from USD 1260- USD 1300/kg, to a top level of USD 3400/kg, a 142% change over the same period.
The cost of heavy rare earths have surged since the beginning of the month as the Chinese government revealed further plans to centralize control over the country’s mining assets. Heavy rare earths, most of which are mined in the southern Chinese province of Jiangxi, have been subject to stricter environmental controls and a government crackdown on widespread illegal mining. Since last year, prices for REE have been continuously increasing, but it is the steady high rate of increase of these price rises that is drawing concern.
Industrial Minerals cites two primary factors that have changed the supply/demand dynamic of this mineral market sector in the past few years. The demand for REE is increasing in applications and China, the world’s main commercially developed REE source of supply, is decreasing exports and increasing its consumption of REE. This, combined with a lack of alternative REE supply outside of China, coupled with forecast estimates of a projected 48% increase in world REE demand as early as 2015 are the contributing factors to the change in supply/demand.