SHANGHAI, Apr 24 (SMM) - A few days ago, the Wa State Government of Myanmar issued an official document saying that in order to protect the remaining mineral resources in Wa State in a timely manner, the mining and excavation of all mineral resources are suspended until mature mining conditions are available. Companies whose contracts have not yet expired and are still mining will be given three months to properly deal with the aftermath.
This news has aroused strong concern among many industry players since its emergence. As more than 80% of the unlisted oxide rare earths in China are imported from Myanmar, some industry players believe that this suspension of mining in Wa may reduce China’s rare earth ore imports, thus slowing down the decline in rare earth prices to a certain extent.
However, according to SMM research, the rare earth ore reserves in Wa are low, thus the suspension of mineral resources in the region does not have a significant impact on China's rare earth imports from Myanmar. From January to March 2023, unlisted rare earth imports in China reached 10,000 mt, up 1,171% year-on-year. And most industry players believe that the main reason for the current weak price trend of rare earths is still the poor demand and the small reduction in imports may hardly cause a rapid rebound in the prices.
At the same time, affected by news factors, the rare earth market saw more inquiries, thus the cargo holder raised the prices of rare earths. Last week, the prices of dysprosium oxide rose rapidly but fell again last Friday as the terminal demand remained poor and the downstream companies were less confident in the subsequent market.
SMM predicts that the weak downstream demand and waning investor confidence will keep rare earth prices under pressure.
