Metal prices to go up, minor metals preferred

A number of research institutes in China predict in their recent reports that the prices of nonferrous metals will continue to go up in the mid-term as growing investment demand boosted by global low interest rates and ample fluidity will drive up the demand for the commodities.

However, they prefer minor metals to base metals for investment, in consideration of their different circumstances.

They believe the prices of minor metals depend more on the development of emerging industries and the government's protective policies for their exploitation, which is currently a widespread practice in many main producing countries.

In China, the government has made or is making plans for the development of such emerging industries as new energy vehicles, solar energy, large-capacity wind power generators, frequency conversion air-conditioners and aerospace industry, which will lead to a boom of demand for such minor metals as tungsten, indium and germanium.

Bank of China (BOC) International comments there is large space for rare metals' prices to rise as the demand from emerging industries maintains its growing trend and the Chinese government is likely to carry out a series of policies to support the emerging industries.

On the Chinese metal market, rare minor metals' prices were rising continuously until last week. The price of tungsten concentration went up 2.4 percent on week to 129,000 yuan per tonne, that of carbonated rare earth surged 11.2 percent on week to 29,800 yuan per tonne, and that of neodymium gained 11.1 percent on week to 498,500 yuan per tonne.