Seeking Alpha

China to increase rare earth purchases, equities move up

  • Rare earth stocks (REMX) start strong after reports overnight say China is likely to purchase billions of yuan of rare earth minerals starting next month to bolster its strategic reserves.
  • Six large rare-earth producers - including Baotou Steel, China's largest rare earth producer by output - are on the list for the purchasing program, which was launched last year.
  • Also, one of China’s largest rare earth producers says it plans to raise funds through private placement to build a plant with the capacity to produce 7K tons/year of rare earth oxides.
  • MCP +3%, REE +3.7%, AVL +8.8%.
Comments (2)
  • Michael Bryant
    , contributor
    Comments (5363) | Send Message
     
    Steel? Why does steel need rare earths? Does it really produce rare earths or is this another Chinese fraud?
    24 Sep 2013, 12:57 PM Reply Like
  • joelkatz
    , contributor
    Comments (448) | Send Message
     
    Baotou Iron and Steel Company established in 1954. It is the largest steel enterprise in Inner Mongolia. It has a large production base of iron and steel and "the largest scientific research and production base of rare earth in China".
    24 Sep 2013, 02:00 PM Reply Like
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