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Rare earths (REMX +0.8%) attempt a rebound from a two-day slide after China said it was cutting...

Rare earths (REMX +0.8%) attempt a rebound from a two-day slide after China said it was cutting rare earth export quotas. Credit Suisse now says alterations in the way the figures were reported might’ve made changes seem severe, and forecasts China’s full-year 2012 rare earth exports to rise ~3%, in-line with previous expectations. RTI +2.2% and TC +0.9%, but MCP -2.3%.
Comments (2)
  • China now has monopolistic position on rare earth metals and my guess is that they are going to use all they can to maintain it. The battle between China and non-Chinese rare earth metals will go on for a while. The non-Chinese producers may meet a fate similar to that of non-Chinese solar panel producers.
    29 Dec 2011, 12:44 PM Reply Like
  • China will do what it can to come out ahead and since they are a communist nation that is learning benefits of capitalism that means that just about anything goes, including stuff that appears illegal or unfair in capitalist countries.

     

    China will keep playing their games. It is up to the rest of the world to figure out how to react but so far I think the US market has a slow learning curve. In the ree industry it's worse. People are speculating on speculating.

     

    But I think it's important to note that much of China's actions in this industry is more about them gaining better control of what they already have. They have had industry dominance but at the cost of environmental damage and internal market corruption. They are also a nation that has had a growing taste for capitalism which mean higher wages (higher labor rates) and better living conditions (tougher environmental laws/restrictions).

     

    Other facts are that the demand for ree's will rise; the resources in China have been diminishing for the past 2 decades while the rest of the world's resources have remained largely untapped; and gov'ts are realizing both the energy conservation applications and military value of this material.

     

    All of this is forcing China to fall back and regroup in this area, and much of that is naturally opening the door to outside competition, but they will undoubtedly do what they can to get the most out of what they have and to make sure they always have enough for themselves - absolutely nothing wrong with that.
    2 Jan 2012, 01:49 AM Reply Like
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