Rare earth prices set to see more declines

Prices of rare earths are set to fall further in the next few months as oversupply and lower prices for other commodities hurt offtake, said experts.

"Traders are selling their existing stocks as the State Reserve Bureau, which manages China's strategic stockpiles, did not purchase any rare earths in September and dampened expectations of higher prices," said Xu Ruoxu, an analyst with Shenwan Hongyuan Securities.

Trading volumes for rare earths continued to remain depressed despite an increase in upstream shipments as downstream merchants are not keen on fresh purchases, traders said.