GE warns higher rare earth prices may impact pricing for lighting productsPosted: July 27, 2011
First Seagate warned that higher rare earth prices are squeezing margins on hard disks. Now, General Electric (GE) has added its own warnings about the soaring prices of rare earth elements (REEs).
In a briefing paper written to explain the situation, GE warns:
“We will do our best to manage these costs where we can, but rises on a similar scale to those seen in recent months will mean further significant price adjustments may be unavoidable.”
The brief paper provides a very general summary of the current rare earth market and describes GE’s current attempts to reduce the impact of high rare earth prices. I now strongly suspect that more and more industrial companies and manufacturers will flag rare earth prices as a potential and/or growing issue. Moreover, these warnings will keep rare earth prices in the foreground of the market’s “thinking” and potentially keep pushing rare earth stocks higher.
Disclosure: author is long several rare earth stocks, including MCP. Also long GE