INN: Rare Earths Market 2016 Q&A With Ryan Castilloux
Evidence suggests most rare earth prices have bottomed-out
Recently we spoke with the Investment News Network about the outlook for the global rare earth market in 2016.
Among the views that were shared:
- We believe that we will continue to see strength behind prices for lanthanum, neodymium, praseodymium, terbium, and dysprosium (the Neo-CREOs) going forward and believe we will begin to see a broader recovery in rare earth prices from 2017 onward. The forward looking supply-demand fundamentals support a price recovery—so long as China can continue clamping down on illegal production.
- At current price levels even China’s major producers are struggling to make a profit, or just break-even. That fact adds long-term support for higher prices than those of today – particularly as China’s industry consolidation continues and illegal production is reduced. So that’s good news for a rare earth exploration company that’s currently 3 to 8 years from possibly starting up production.
Read more about what was discussed in this recent article from the Investment News Network.Back to overview