China calls on rare earth companies to bring prices down to ‘reasonable’ level

Workers transport soil containing rare earth elements for export at a port in Lianyungang, Jiangsu province, China October 31, 2010. REUTERS/Stringer

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BEIJING, March 4 (Reuters) – China has summoned some key rare earth companies amid continued rising product prices and urged them to ensure a stable supply chain to help cool prices, said Friday the regulator.

The Ministry of Industry and Information Technology said in a statement that it had asked producers, including China Rare Earth Group, China Northern Rare Earth Group (600111.SS) and Shenghe Resources (600392.SS) , to regulate their operation and trade, and to prevent any stock market speculation or hoarding.

The authority also urged companies to take the initiative to promote a pricing mechanism for rare earth products and jointly bring prices within a reasonable range, she said.

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

China’s price of praseodymium-neodymium alloy used to make super strong magnets for EV motors has fueled 32% so far this year to 1.38 million yuan ($218,395.90)

per ton.

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

($1 = 6.3188 Chinese yuan renminbi)

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Reporting by Min Zhang, Beijing Newsroom and Dominique Patton; edited by John Stonestreet and Elaine Hardcastle

Our standards: The Thomson Reuters Trust Principles.

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