Rare Earth Metal Prices Hit 6-Month Lows on Oversupply and Weakened Demand
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Rare earth metal prices have been declining for 6 straight months, reaching near pre-pandemic lows due to oversupply, weakened demand, and technological advancements.
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Experts say prices need to rebound substantially to support new rare earth projects, which require higher prices to be economically feasible.
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Oversupply is a key driver of the price drops, with 2023 seeing a 10% rise in rare earth output globally, outpacing demand growth.
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The global economic downturn has reduced demand for industrial machinery and other items dependent on rare earths.
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Trade disputes and technological advancements like alternatives to rare earths also create market unpredictability and may dampen price recovery.