Tech metal prices escalate globally as china tightens supply of terbium and dysprosium
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Tech Metal prices escalate globally as China tightens supply of Terbium and Dysprosium Tech Metal prices are on an uptrend in 2015; reasons behind the rising tech metal prices are the structural changes in the tech metal market of China, as well as a rapidly growing demand for tech metal magnets. China, which accounts for 90 percent of global tech metal supplies, has been tightening trade in the strategic metals market since late 2010, resulting in an explosion in prices. Chinese Government is on the process of restructuring its export and production policies after losing a WTO trade case last year. The country’s new monitoring system on domestic tech metal production will continue to support price hikes and significantly boost the technology metals market globally in 2015. There is a clear relationship between the tech metals prices and their application in permanent magnets; the prices of Terbium and Dysprosium are soaring as they are used in the production of high-power permanent magnets. The price of terbium and dysprosium have seen a dramatic rise with an increase of 47.73% and 21.52% respectively since November 2014. Dysprosium and terbium are very critical to the present industrial strategy and also unavoidable for larger innovation in the manufacturing sector of world’s second largest economy China. According to Chen Zhanheng, deputy general secretary at the Association of China Rare Earth Industry (ACREI), the world’s production of dysprosium and terbium, remains almost entirely with China as consumption of dysprosium oxide is at around 800 to 1,000 tons per year. The government plans to introduce new legislation to push up tech metal prices before the end of April 2015. The new legislation will result in a sharp rise in tech metal resource taxes, which in turn will impact the export tariffs and global tech metal prices. Additionally, the China’s State Bureau of Material Reserve (SBMR) is planning on proceeding with a new round of tech metal stockpiling, which hints that the prices will remain strong globally.
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Transcript of Tech metal prices escalate globally as china tightens supply of terbium and dysprosium
Tech Metal prices escalate globally as China tightens supply of Terbium
and Dysprosium
Tech Metal prices are on an uptrend in 2015; reasons behind the rising tech metal prices
are the structural changes in the tech metal market of China, as well as a rapidly growing
demand for tech metal magnets. China, which accounts for 90 percent of global tech metal
supplies, has been tightening trade in the strategic metals market since late 2010, resulting
in an explosion in prices.
Chinese Government is on the process of restructuring its export and production policies
after losing a WTO trade case last year. The country’s new monitoring system on domestic
tech metal production will continue to support price hikes and significantly boost the
technology metals market globally in 2015.
There is a clear relationship between the tech metals prices and their application in
permanent magnets; the prices of Terbium and Dysprosium are soaring as they are used in
the production of high-power permanent magnets. The price of terbium and dysprosium
have seen a dramatic rise with an increase of 47.73% and 21.52% respectively since
November 2014.
Dysprosium and terbium are very critical to the present industrial strategy and also
unavoidable for larger innovation in the manufacturing sector of world’s second largest
economy China.
According to Chen Zhanheng, deputy general secretary at the Association of China Rare
Earth Industry (ACREI), the world’s production of dysprosium and terbium, remains
almost entirely with China as consumption of dysprosium oxide is at around 800 to 1,000
tons per year.
The government plans to introduce new legislation to push up tech metal prices before the
end of April 2015. The new legislation will result in a sharp rise in tech metal resource
taxes, which in turn will impact the export tariffs and global tech metal prices. Additionally,
the China’s State Bureau of Material Reserve (SBMR) is planning on proceeding with a new
round of tech metal stockpiling, which hints that the prices will remain strong globally.
About Electio Middle East
Electio Middle East is an international commodity brokerage focusing primarily on Technology Metals.
Electio is the largest brokerage in its sector and the first company worldwide to offer a niche investment
platform enabling judicious investors to diversify their portfolios into the Tech Metals Sector.
