Rare Earth Raw Materials And Application Markets - A Balancing Act

1995 have seen a continuation of a positive trend in the Rare Earth industry The availability of a greater diversity of Raw Material has brought additional flexibility to the Producers permitting better economics China remains the major raw material source; Chinese concentrate producers have increased capacity in 1995 (Baotou, Sichuan, etc) China's role in the Rare Earth industry will continue to evolve; the acquisition of a majority equity position by San Huan/CNNC will have a significant impact on both the Rare Earth and Magnet markets Chinese producers are increasing the quality of their products and realize their true values Chinese market, itself, is also changing as the internal needs for separated rare earth's grow Already already producer of Lamps, Loudspeakers, Magnets, and TV tubes, China is in an unique position where the potential of its internal market might be more promising than the prospects outside China 1995 has also seen the application market become more diverse and complex. There are new applications growing at a very strong pace (such as battery alloy), applications that are now penetrating their target markets with significantly increased growth rates (such as bonded NdFeB), and some applications that became more complex requiring much more sophisticated products (such as catalysis). Rare Earth producers have to spend significant ressources in order to monitor the market trends in order to predict the demand and then adjust their raw material mix. Even though there is a greater diversity of raw material available, there is still some Rare Earth elements that are in excess, while other are just in balance. As a consequence rare earth producers invest heavily in R&D in order to develop new applications for these excess elements.