NFC's 7,000 tpy Rare Earth Separation Project Fuels Oversupply Concern

BEIJING (SMM): NFC’s Southern Rare Earth (Xinfeng) Co. invited tenders for its 7,000 tpy rare earth separation project December 3, China Business News reported. Some analyst worried the move may aggravate overcapacity in China’s rare earth markets.

The project, located in Guangdong’s Xinfeng County, was approved by the National Development & Reform Commission last year and invested 612 million yuan ($99.69 million).

An analyst from CIConsulting considered the move not so wise, noting that inefficient capacity in rare earth industry has not been eliminated, and the commencement of any new project will only add to oversupply pressure in the market against the backdrop of falling prices, weakening demand and severe overcapacity.

Courtesy: www.metal.com