Shenghe Resources Says Rare Earth Price Drop Is Caused by Poor Demand Rather than Supply Factor

Shenghe Resources said that the recent rare earth price drop has been caused by poor demand rather than supply factor.

The domestic rare earth capacity has hit a ceiling, making capacity expansion almost impossible. Rare earth prices will not stabilize unless demand grows. If demand fails to pick up, rare earth prices will still fluctuate, but not as much as they used to.