For rare earth demand, there have been many divergences in the industry over the past few days. Some people say that the supply of rare earth industry is in excess of demand today, so the price is encountering "Waterloo" and the market is tragic. But some people also said that the demand for rare earth is still in short supply, and in the next five years, domestic demand for rare earth will grow by 50%.
 

Chen Zhanheng, deputy secretary-general of China Rare Earth Industry Association, pointed out at a recent meeting in Shanghai that domestic demand is expected to increase by nearly 9% to 97,700 tons this year, and by the end of 2020 it will be close to 150,000 tons, up 50% from 90,000 tons in 2014.

Whether Chen Zhanheng's views hold water or not depends on facts. Industry estimates show that by 2020, the global supply of rare earth is expected to increase by 100,000 tons. China's rare earth production accounts for not only about 90% of global supply, but also about 80% of consumption, and demand is still growing.
 

Some analysts believe that if the global economy is steadily improving, the global supply of rare earth may increase by 100,000 tons by 2020. Especially people's demand for electronic products, such as mobile phones, is growing at a double-digit rate in emerging markets. If Western economies grow as expected and demand from emerging markets such as China increases, demand for rare earths will grow significantly in the next five years.