Rare earth elements Category Intelligence
Report Coverage
- Executive Summary
- Category Landscape
- Rare Earth Elements – Mine Production Map
- COVID-19 Impact
Rare earth elements Market Trends
Category Intelligence on Rare earth elements covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Want a more detailed personalised report?
Industry Outlook & Drivers
Rare Earth Metals Global Market Outlook:
Market Overview
China continues to hold the dominance in rare earths metal market and accounts for nearly 63 percent of the global mine production in 2019. In 2020, the global mine output is expected to decline due to Covid-19 outbreak.
Sourcing practices
Short term contracts due to high degree of volatility caused due to Covid-19 outbreak.
Porter's Analysis on Rare Earth Metals
Supplier Power
- The global rare earth elements market is highly consolidated and hence, the bargaining power of suppliers is medium to high. Six state-owned miners of China are holding a major share of the rare earths mining industry, thereby allowing China to keep a strong handle on production
Barriers to New Entrants
- The barriers to new entrants is considered high for rare earths market. The process of extracting and subsequent treatment is a complex process and involves high costs
- The extraction process involves huge environmental cost. Some of the processes use acids for separation and the combustion with high temperatures emit carbon dioxides
Intensity of Rivalry
- Intensity of rivalry is medium, due to consolidation in the industry amongst the major players. There is high investment cost for entry, regulations, and high exit barriers
- The struggle for market share and increased profitability is reflected in price competition
Threat of Substitutes
- Rare earth elements have very low substitute threat. Though substitutes are available, they are always considered less effective in many applications
Buyer Power
- Buyer power is medium to high, depending on the end-use industry, as the level of demand varies across the industries
- For instance, the current magnet industry downturn and the weak commodity market provide added advantage to the buyers, in terms of price negotiation
