Seeking Alpha

Word China could double rare earth exports this year is less than meets the eye. A slowing...

Word China could double rare earth exports this year is less than meets the eye. A slowing global economy had China exporting only about one half of its government-mandated quota in 2011. The quotas for 2012 aren't changing, it's just hope sharply lower prices for the minerals will lead to a bump in demand and those quotas being hit.
Comments (4)
  • bearish for MCP
    26 Feb 2012, 08:05 PM Reply Like
  • Short term, but long term MCP and other mining companies with proven reserves should outperform.
    26 Feb 2012, 08:14 PM Reply Like
  • is is an "Old Story"! I think rare Earth Elements and MCP specifically is acting like any other metal sector... They are reflective of general confidence in the global economy.The supply side questions now overshadow potential demand side needs which will not go away…. Needs for electronic and magnetic developments, the electric car and wind turbines are moving along and uses in the petroleum and polishing arena are not diminishing nor are the need for rare earth elements. This is the only sector that seeling prices are forecasted to drop to levels of 3 years ago. If the pricing and production number from China were transparent I would be able to understand the Bearish sentiment but for now I will wait with my long dated calls and see if this casino is rigged.
    26 Feb 2012, 09:15 PM Reply Like
  • I don't think this is entirely bearish as the prices should have been factored into forecast. This was one of th reason they did not want to specify during the call due to this uncertainty. Also, the quota china is reporting remains the same and there is intention for further expansion outside china. To me that means potentially more M&A as they are looking to use the strong yuan to increase foothold further.
    27 Feb 2012, 05:47 AM Reply Like
DJIA (DIA) S&P 500 (SPY)