The Year of the Metal Ox Brings a Short Rest

The last few months have been marked by a sharp rise in the price of rare earths. This is due, among other things, to stricter export regulations and to increasing self-stocking of monopoly holder China (we reported in a special report). Another explanation for rising prices is likely to be the Chinese New Year. The Asia Times Financial (ATF) points to increasing commodity purchases ahead of the festivities, which have pushed up prices further.

Now the price high of the rare earths has flattened for the time being. This development is most likely related to the Chinese New Year holidays. Companies will be closed from the 11th to 17th of February. The economy is standing still. The beginning of the year of the metal ox leads, as reported by the ATF, to a temporary pause in the rare earth market.

According to Argus Media, the holidays may also be the reason that the coup in Myanmar has had little impact on prices. Roskill points out that the military coup could have major consequences for the rare earth market if sanctions are imposed on Myanmar. The market news service sees this as not very likely and does not expect any additional shortages of rare earths.