Outlook Strategic Commodities

Situation for rare earths

The end of November, Beijing has a list of 28 Published company, which for the year 2014 Export quotas are allocated. This means first of all, that the past WTO ruling China not for the abolition of export quotas has been able to move. For the first time a reputable company is listed by name as "unqualified", da es in 2013 was pilloried for goods smuggling.

At the 10. Dezember berichtet Asian Metal, that it was the Chinese customs authorities have succeeded, reveal a large-scale smuggling ring. Within 2 Years existence of the organization 130 t Rare earth (2% der chin. Annual production) brought illegally out of the country. Many market participants expect, that the increasing success of the Chinese authorities will reverse the persistent decline in prices soon.

Strategic reserves

After the economic powers of the Far East to build successive inventories strategically important raw materials for several years, also sees the U.S. defense budget for 2014 before, to create a large contingent of strategic reserves. These are, among others, the rare earths include yttrium and dysprosium.

From China there are messages, that the government 50 wants to buy t gallium for strategic reserves. Thats about. 15% from the world market! In addition, the Fanya Metal Exchange buys (Chinese platform for private investors) for several months continuously large amounts of gallium. This could be interpreted as a signal. This is because both Beijing and Chinese investors seem with these actions to respond to the projected increase in demand of this metal, its price is still on the ground.

Also indium is continuously buys in large volume by the Fanya Metal Exchange. These days, however, reported Metal Pages, that the market was not currently in a position, to meet the needs of Fanya Metal Exchange sufficient. Even this can certainly be seen as alarming sign!

At the 13. Ten. berichtet Metal Pages, that Beijing 1. Quarter 2014 for strategic reserves 30 wants to buy t germanium. This corresponds to 1/3 China's annual production!

A new player on the small market for Rare Earths and Strategic Metals is the British firm FEM (www.fem.uk.com), the called a camp program for critical elements to life on a private level. Since November, here are larger amounts of gallium, Germanium, Indium, Purchased terbium and dysprosium.

Substitutes only possible

Periodically we hear of substitutions or technological breakthroughs. But a study published in early December Yale University now states, that for 62 Metals are no better substitutes. For 12 these metals is a substitute entirely impossible; u.a. Rhenium and dysprosium. This is partly in contradiction to the statements of many industrial companies, spread the messages over and over again otherwise. However, according to Yale University go substitutes often at the expense of performance or. could be new technologies in many cases not on a commercial scale or. realized on commercially reasonable terms.

Electric mobility of the future

The UK market analysts IDTechEx have published a study in December, according to which the market for hybrid- and electric vehicles in the next 10 Years to 400% is expected to increase. This leads to a significant increase in demand of critical raw materials from. These are on the one hand the so-called magnetic metals dysprosium, Neodymium, Praseodym und Terbium. Also highlighted is gallium, which should get preference over conventional materials for higher-power capacitors.

If the supply to the forecasted demand development can not keep pace, expected prices of these commodities will soon pick up again.

Kindly supported by Tradium

This entry was posted in News, Rare earths General, Rare earth and the research, Rare earth and the international policy, Rare earth and the economy and tagged , , , , , , , . Bookmark the permalink.

Comments are closed.