Rare earth prices surge

BEIJING – Prices of rare earths have skyrocketed this year as China moves to consolidate the sector in order to tighten its grip over the highly coveted minerals used in high-tech products, analysts said yesterday.

Prices of heavy rare earths, which are more expensive than the light elements due to their scarcity, have soared by up to five times since the start of 2011, Zhang Fang, an analyst with China Securities Co Ltd, said.Those of light rare earths have meanwhile jumped by two to three times during the same period, she said.Europium oxide, which is used to make television sets and fluorescent lamps, cost 26 000-28 000 yuan (US$4 015-US$4 324) per kilo yesterday, up from 7 700-8 200 yuan a month ago, according to industry website Shanghai Metals Market.China produces more than 95 per cent of the world’s rare earths – 17 elements critical to making everything from iPods to electric cars and missiles – and Beijing has been trying to bring the minerals under state control.’Both domestic and foreign demand are currently still quite strong,’ she said, adding speculation may have also played a part in driving up prices.Beijing has cut rare earths exports for the first half of 2011 by 35 per cent compared with a year earlier, having slashed the quota by 72 per cent for the second half of last year.It has also set tougher environmental standards for the industry, restricted production capacity in projects that separate rare earths from crude ores, and raised taxes. – Nampa-AFP