SHANGHAI, Oct. 21 (SMM) – Rumor is flying around that China’s six rare earth groups will meet with the State Reserve Bureau (SRB) in late October to discuss rare earth stockpiling. Will the rumor give a strong boost to rare earth prices?
The rumor will buoy up rare earth prices in October, but the potential upside room will be limited in the medium-to-long term, SMM says.
Prices for some rare earth elements rose after the Chinese National Day holiday. For example, prices for neodymium oxide rose from 232,500 yuan per tonne to 257,500 yuan per tonne, a gain of over 10%. However, trading was limited.
In fact, some producers are planning to restart idled capacity and more suppliers begin to release goods into the market amid rising prices. This will curtail price gains in the future.
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