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Noida, Uttar Pradesh, India, 2011/10/24 - Despite a recent bust, prospects for rare earth stocks will remain strong in the long term. Investors, however, will have to closely analyze the grade and composition of individual rare earths before investing in a mine.
Until the last few months, rare earth elements were hailed as the next big thing and until April 2011, it was like as if the whole world was scrambling to invest in rare earth mines. In recent months, however, rare earth stocks have been falling like meteorites, with many investors thinking whether it is the end of the party for the rare earth elements industry and the companies exploring and mining them.
First of all, the entire fuss over the rare earth elements shortage was over hyped. A study undertaken by IMARC Group, one of the worlds’s leading research and advisory firms, reveals that while it’s clear that a number of rare earth elements will witness a critical supply shortage in the near term, rare earth elements, on a whole, will be oversupplied by around 20% by 2015. So strictly speaking, it is not the total, but rather five rare earth elements - Erbium, Dysprosium, Terbium, Neodymium and Europium that will face a supply shortage in the coming years. Elements such as Samarium, Cerium, Lanthanum, etc, on the other hand, will be massively oversupplied in the future.
Secondly, the fall in rare earth stock prices witnessed in recent months was a sharp correction of unrealistic bubble prices that were created during 2010 and the early part of 2011. Price projections from the report suggest that prices of elements such as Dysprosium, Terbium, Europium, etc will increase in the next five years, on the contrary, the prices of elements such as Lanthanum, Cerium, Samarium, etc will fall like crazy. The report suggests that investors should analyze the grade and composition of individual rare earth elements before taking their investment decisions as mines rich in heavy rare earths such as Terbium and Dysprosium will have significantly better prospects than mines that have a lower share of these elements.
IMARC’s new report entitled “The Global Rare Earth Elements Market 2011-2015: Is the Hype Justified?” provides an analytical and statistical insight into the global rare earth elements market. The study that has been undertaken using both desk-based as well as qualitative primary research has analyzed five aspects of the rare earth elements market.
Key Aspects Analyzed in this Report:
Understanding the Mining Economics of Rare Earth Elements:
Focus of the Analysis:
• Rare earth mine valuation
• Stages and time taken to develop and start production at a rare earth mine
• The total costs involved in rare earth mining
• Mining and downstream processing of rare earth elements
• Rare earth element pricing
Understanding China’s Role in the Global Rare Earth Elements Market:
Focus of the Analysis:
• China’s role in the global supply and demand of rare earth elements
• Reasons for China’s dominance
• China’s current and future supply strategies
Comprehensive Situation Analysis of the Global Rare Earth Elements Market:
Focus of the analysis:
• Quantifying the historical sales and production of rare earth elements
• Identification and evaluation of current global rare earth mines
• Identification and evaluation of mines expected to begin production in the next five years
• Current and future consumption of rare earth elements
Evaluating the Supply and Demand of Various Rare Earth Elements:
Focus of the analysis:
• Quantifying the production of each element from current and future mines
• Quantifying the current and future demand of each element
• Historical, current and future prices of each element
• Evaluating the supply risks of each element and its importance for clean technology
• Identification of critically undersupplied and oversupplied rare earth elements
Information has been sourced from both primary and secondary sources:
• Primary sources include industry surveys and face to face/telephone interviews with industry experts.
• Secondary sources include proprietary databases and search engines. These sources include company websites and reports, books, trade journals, magazines, white papers, industry portals, government sources and access to more than 4000 paid databases.
To buy the complete report or to get a free sample:
Call: +91-120-425-6531 (Asia), +44-844-774-3860 (Europe), +1-631-791-1145 (America)