Surging Rare Earth Prices

Rare earth price keeps increasing. The demand for the materials of permanent magnet and rechargeable battery expands under higher demand for automobile and digital appliances while the largest supplier of China restricts the export regulation. Japanese import price tripled to 2,849 yen per kilogram in January-April compared with 3 years ago, according to Ministry of Finance. Especially, magnet materials’ price increased to 3-7 times from 2004. Price of major magnet material of neodymium increased to FOB US$ 35.50 per kg for neodymium oxide, which is 7 times of the price in 2004, according to Lynas of Australia. Price of dysprosium oxide, which is additive of magnet, tripled to US$ 90. China, which supplies more than 90% of world rare earth, increased the restriction for rare earth export through lower quota and termination of export tax rebate since 2005. The country imposed 10% export tariff for rare earth oxide from January 2007 and for rare earth metals from June 2007. Neodymium price increased by around 50% compared with averaged in January-March.