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%.

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Comments (2)
  • Michael Bryant
    , contributor
    Comments (6924) | 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 (566) | 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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