China To Push For High-Quality Development Of The Rare Earth Industry

The State Council executive meeting studied the work related to promoting the high-quality development of the rare earth industry, emphasizing the need to coordinate the exploration, development, utilization and standardized management of rare earth, increase the research and industrialization process of high-end rare earth new materials, and severely crack down on illegal mining, ecological damage and other behaviours.

Premier Li Qiang chaired an executive meeting of the State Council on November 3 to study work related to promoting the high-quality development of the rare earth industry, discussed the Frontier Health and Quarantine Law of the People's Republic of China (Revised Draft), and approved the Implementing Rules for the Patent Law of the People's Republic of China (Revised Draft). The meeting pointed out that rare earths are strategic minerals. It is necessary to coordinate the exploration, development, utilization and standardized management of rare earth, coordinate the forces of industry, academia and research, actively promote the research and development and application of a new generation of green and efficient mining, selection and smelting technology, increase the research and industrialization process of high-end rare earth new materials, and severely crack down on illegal mining, ecological destruction and other behaviours, and strive to promote the high-end, intelligent and green development of the rare earth industry.

A draft order on the rare and rare earth metal industry published on the Kazakhstan government website showed that the country planned to spend 11.8 billion tenge (approximately $25 million) to increase rare metal and rare earth metal production by 40% by 2028. Kazakhstan planned to have start-up of at least 10 new deposits and at least 5 new companies and the introduction of at least 5 new products.

Market confidence was boosted, and short-term rare earth prices will rebound

Contrary to a slight rise in September, rare earth prices moved downwards in October. In October, praseodymium-neodymium oxide prices dipped from 535,000 yuan/mt to 510,000 yuan/mt, down about 5% MoM. Dysprosium oxide price fell from a peak of 2.74 million yuan/mt to 2.63 million yuan/mt, down about 4% MoM. According to the latest quotation from SMM, most rare earth spot prices were stable on November 3, except for a drop in dysprosium oxide, yttrium oxide and holmium oxide prices.

In SMM’s view, the State Council meeting will shore up the industry’s confidence in rare earth outlook to a certain extent. In addition, there is news surrounding Myanmar closing its border. As such, SMM predicts that rare earth prices will rebound on the near-term horizon.