Rare earths price defying gravity

The price of rare earths may fluctuate at high levels in the next months, according to a research note from China Merchants Securities.

Despite the government's efforts to curb financial speculation, supervise environmental protection and prohibit illegal mining, there is still strong demand in the market. With the supply of rare earths - especially light rare earths - unable to meet short-term demand, prices still have room to rise, according to the report.

By Sept 7, the average price of praseodymium-neodymium oxide, the iconic rare earth product, rose to 520,000 yuan ($80,280) per metric ton, a 6.1 percent increase over the price only a week ago, and double the price at this time last year, according to Baiinfo.com, a raw material information provider.