What are the rare earth metals prices — historical and today

Rising rare earth elements prices indicates a close ending of the Chinese monopoly on the market of rare-earth metals and will contribute to the development of worldwide projects related to this market. Experts believe that the increased heavy rare earth metals prices today mean a return of confidence in the industry and the end of the so-called “invisible market processes”, as companies increasingly turn to long-term contracts.

Rare earth metal historical prices

Spheres of innovative use of rare elements are expanding almost daily. Many rare metals that have not been in demand for a long time have now given life to such areas of modern industry, science, and technology as

• solar energy;
• magnetic-levitation high-speed trains,
• infrared optics and fiber optic electronics;
• lasers and the latest computer systems.

From the 1960s until the 1980s, the United States was the dominant producer of rare earth elements in the world (Mountain Pass field in California). However, lower cost of rare earth metals, caused by "pressure" from China, and tougher environmental legislation in the United States led to a change in the main global producer of lanthanoids - the United States was taken by China.

Rare earth elements prices today

In recent years, China has managed to tighten government control in the market of rares producers what also affected silver price forecast. Most of the producers in the country were merged into several big companies, and simultaneously the unlawful mining of rares had been brought under control, its size decreased. Preventing illicit shipments, the Chinese government has ensured that a significant supply of illegally produced lanthanide concentrates was collected and added to the supply chain.

Excessive supply in the market undermined Asian metal rare earth prices. Now, according to analysts, the excess reserves of concentrates in China have declined to the level of 2011. It is expected that in the closest future the demand for lanthanides will continue to grow. The ability of the market to respond quickly to supply shortages is limited by many factors. Thus, it is estimated that it takes up to 15 years to open a new mine in order for inflows of rares raw materials from it to impede the market’s ability to respond quickly to price fluctuations and increased demand.

In addition, the opening of new production capacity requires an investment of at least $ 1 billion for each new mining project, and attracting such amounts is difficult given the current situation in the financial markets. Now rare earth metal historical prices for oxides in the Chinese domestic market increased by 50% and reached a three-year maximum.

Сost of rare earth metals mining

Kazakhstan is one of the significant suppliers of rares and earth metals to the world market. In recent years, their production and mining in Kazakhstan have been of particular interest to the investors and government. Stocks of rare and alkaline-earth metals and technologies for obtaining them could lead the country to world leaders in certain narrow segments, such as special alloys, catalysts, components of green energy and new materials. This is a very attractive perspective for investors seeking the best way how to invest in rare earth metals.

The resources available to the Kazakhstan Republic are estimated by experts as one of the largest in the world: there are large reserves of tungsten, molybdenum, chrome, copper, titanium, uranium, gold, rare and rare earth metals. Over the past years, production has begun to resume, and now Kazakhstan with its considerably low cost of mining of rare earth metals has great chances to become one of the world leaders in the production of rare-earth products. Also, the government of Kazakhstan has approved a state plan, which includes a significant increase and development of rare-earth production till 2019.