Chinese rare earth export prices dropped to new lows due to export duties elimination
All the prices of Chinese rare earths whose export duties were eliminated on 1 May have dropped. The government announced to impose resource tax on rare earths, but prices have shown no effect.
The export prices of rare earths have declined all in all. Dysprosium metal FOB dropped to $360/kg and cerium oxide FOB also dropped below $3/kg to $2.2/kg. Both tumbled to new lows.
As to the heavy decline, a trader of rare earths said, gThe situation is going as I thought it would be. The prices were expected drop after the elimination of export duties, and will drop further.h As to the outlooks of Molycorp and Lynas concerned about the effect of this declines, he commented with apocalyptic words, gFinally, they are coming to ends.h
While two companies are struggling to pull out of the red, the price fall put enough pressure on them to put their viabilities in danger. Especially, Molycorp has suffered twelve consecutive periods of loss.