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China Calls On Rare Earths Firms To Help Cool Prices

Rare earths prices have soared since the second half of 2021 over supply chain uncertainty from Myanmar and strong demand

Rare earths are loaded on to trucks at Lianyungang port in Jiangsu province in this file photo from AFP. Chinese officials are eager to stem the rise in rare earth prices, as well as many other commodities.


China has called on its key rare earths companies to help cool the critical market amid rising product prices and supply chain issues.

State regulator The Ministry of Industry and Information Technology said in a statement on Friday that it had instructed producers – including China Rare Earth Group, China Northern Rare Earth Group and Shenghe Resources – to regulate their operations and trading, and to prevent any market speculation or hoarding. 

The authority also urged the companies to take a lead in promoting a pricing mechanism for rare earths products and jointly bring prices back to a reasonable range, it said. 


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Prices of rare earths, a group of 17 minerals used in electric vehicles (EVs) and military equipment, have surged since the second half of 2021 amid concerns of supply uncertainty from Myanmar and strong demand.

The Chinese price of praseodymium-neodymium alloy used to make super strong magnets for EV motors has risen 32% so far this year to 1.38 million yuan ($218,395.90) per tonne. 

A price index issued by the Association of China Rare Earth Industry stood at 429.4 on Friday, hovering around its record highs.


  • Reuters with additional editing by Sean O’Meara


Read more:

Myanmar Strife Keeping Rare Earth Prices On The Boil

China May Expand Rare Earths Mining In Baiyun Obo

GM to Domestically Source Rare Earth Magnets for EVs

China’s Rare Earths Exports Rise To Seven-Month Peak



Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.


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