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China is expected to rare earth metal prices

Chinese regulars commodity trading platforms expected correction of established prices for rare earth metals to the downside. The reason for that — a return to the «cornfield» of the global market's largest supplier of resources in this category — REM producer of Inner Mongolia (Autonomous Region of China) — the company Baotou Steel.

Earlier it was reported that the producer of rare earth metals mentioned above in late February, resumed its activities, stopped four months ago. The reason for «freezing» of production management Chinese company then called glut REM market (which, according to management Baotou Steel, would lead to a reduction in price of raw materials). Apparently, the current situation in the sector in the company considered stable enough to re-enter their facilities for the extraction of rare earth elements in operation. However, this view does not agree to other market operators. «Return» BS «prematurely» — say the traders. «The demand has yet to recover, so that the company's management had feared (falling prices due to surplus) could happen now with the same high probability that before the holidays Baotou Steel» — Commodity experts say.

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