The prices of Chinese rare earth metal have reached the highest mark within 20 months after the major supplier Myanmar suspended its rare earth mining and production.

Metal market analysts said that the prices usually reached the highest mark when accumulating the metals before the peak season of using them.

The rare earth metal prices usually rise with high demand in September and October when the using of these metals are at a peak.

The price of rare earth metal Dysprosium Oxide reached CNY 2,610 (US$356) per Kg on 8 September 2023 and it is the highest since May 2022.

These rare-earth elements are mainly produced in Kachin State on Sthe ino-Myanmar border. Shanghai Metals Market (SMM) says in its news release dated 8 September 2023 that the mining in Panwah which is the major rare-earth mining area in Myanmar has been suspended.

These rare-earth elements are major components in production from electronic devices and gadgets such as mobile phones, computers and TV displays to advanced military jet fighters and EVs in their computer control and command systems.

China, which is the major production centre of mobile phones and electric and electronic appliances based on computer control, is producing and mining these rare-earth elements and also they are buying these metals from Kachin State in neighbouring Myanmar.

Canada-based Mining and Exploration research group Adamas Intelligence says that 40% of rare-earth elements demand in China is supplied by Myanmar.

China imported 118,426 tonnes of rare-earth elements in the first eight months of this year and in August alone it imported 12,673 tonnes.

According to the data issued by the US Geological Survey, Myanmar is the third largest producer of rare-earth elements in 2022 after China and US.