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Demand For Rare Earth Metal from Wind Energy Sector driving the market
Rare earth metals are extensively used in permanent magnets, alloys, catalysts, and phosphors. One of the important factors contributing towards the growth of the market is increasing demand from wind energy sector.
The demand/supply equilibrium was disrupted recently with the major fluctuations in prices of rare earth metals in 2011. This was due to restrictions placed by China in the form of cut on export quotas, constraints on mining to follow good environmental practices, and curb illegal practices. These restrictions imposed by China caused the prices of the rare earths to increase exponentially almost overnight as it created a supply shortage. During this time, prices of some critical rare earths such as neodymium and dysprosium increased by over 500%.
The major players in the market compete on various parameters such as technical innovation, production capabilities, performance, quality, and geographic reach. The major players in the markets are Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co Ltd.(China), Molycorp Inc.(U.S.), China Minmetals Rare Earth Co. Ltd. (China), and Great Western Minerals Group Ltd.(Canada). China will continue to dominate the market, since they are looking for forward integration in the value chain to produce end-user products of rare earth oxides. China hopes to implement this strategy to have better profitability and hence solidify their position as market leaders.
Rare Earth Metals Market by Type (Lanthanum, Cerium, Neodymium, Praseodymium, Samarium, Europium, & Others), and Application (Magnets, Metals Alloys, Polishing, Additives, Catalysts, Phosphors, & Others) - Global Trends & Forecast to 2018
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