Higher prices for critical rare earth elements (CREE) are marking a return of confidence to the industry and the end of the so-called “hand-to-mouth” market as users increasingly turn to contracting to secure long-term security of supply.
“For several years users were unsure about the market direction, prompting them only buy about three months supply of CREEs at any given time, since they were looking to capitalise on potentially lower prices. But now, early stage demand is taking off and we are seeing the light at the end of the tunnel,” Sudbury, Ontario-based industry observer Adamas Intelligence founding director and exploration analyst Ryan Castilloux tells Mining Weekly Online in an interview on Monday.
