Rare Earth News

Analysts expect rare earth prices to drop

Rare earth prices are expected to drop, and could see values sink as much as 80 percent by the medium term, according to Mining Weekly. Meanwhile, shares are not expected to drop because companies set to produce them are currently undervalued.

“From a fundamental standpoint, we continue to see medium-term upside potential in the shares as we believe that the equities are building in a dramatically lower level of rare earth pricing,” said Anthony Young and Anthony Rizzuto to the news source.

Earlier in the year Goldman Sachs projected an overabundance of light rare earths like cerium and lanthium by 2013 because of companies starting projects in both the U.S. and Australia.

According to the news source, the drop in prices could be beneficial as it will set up for a more stable demand growth in the future.

Dacha Strategic Metals reported a gain of $23 million in March and believe they will be able to sell rare metals for higher prices in the near future. According to the Gold Report, Dacha stockpiles rare metals in tons and sells to smaller companies that buy regularly, which could be why they continue to see successful numbers.