So it was less than a few months ago that we discussed the price of Neodymium. Since that time the price continued to fall (it was shown reaching down to 150 $/kg in the graph in that post). So what has the price of Neodymium done since then? Well it seems to be….bouncing.
From 150$/kg at the bottom of the last graph the price seemed to continue to drop down to 90 all the way to about 75$/kg. Then it started rising again in the mid-summer. Then just a couple of weeks ago the prices started to fall again. So what happened? Apparently the price rise was based on speculation that a very large order from China’s State Reserver Bureau was in the works, but fell through. China is also experiencing some economic woes in their commodities markets.
Another factor is that other nations besides China have been working on their own Neodymium production. Russia invested heavily this year on rare-earth production to prevent dependence on China’s output. In the US the National Strategic and Critical Minerals Act was passed which is designed to speed up approval of mining operations.
All of these actions are in response to China’s heavy restriction on Neodymiums over the past year that caused a massive upsurge in Neodymium price before it crashed. It is hard to tell if China was flexing its economic muscles and is now paying the price, or if it was legitimately trying to control mining production and pollution issues but ended up stinging the world market.
It is also possible that Neodymium may continue simple rises and falls like any marketplace commodity, no longer rock-bottom but also no longer with sky-high prices.