Producers of metals and other raw materials fell as first-quarter GDP growth came in at the slowest pace in almost two years and new orders for durable products barely rose in May.

Lynas Rare Earths plans to separate two heavy rare earths used in electric vehicles and electronic gadgets at its plant in Malaysia, a step that could help to loosen China's grip on markets for the critical materials.

The Australia-listed company has designed a new process that will for the first time produce separated dysprosium and terbium at the plant, from which it ships rare-earth materials to customers in the U.S., Europe and East Asia. China essentially refines all the world's heavy rare earths today.

Commodity strength across the board this year -- particularly in metals like gold and copper -- is expected to reverse course through the second half of 2024 into 2025, Capital Economics said. The firm said that even with falling interest rates and improving GDP growth worldwide, commodity demand is expected to be challenged by factors like a growing supply of energy commodities globally, as well as a slowdown in economic activity in China. 


Write to Patrick Sullivan at patrick.sullivan@wsj.com

(END) Dow Jones Newswires

06-27-24 1816ET