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China's grip on the rare earth market may be slipping, Brad Plumer writes. Two years after...

China's grip on the rare earth market may be slipping, Brad Plumer writes. Two years after China's move to restrict its export quota by 40% - making it economical for other countries to start boosting their own production - the market has adjusted. As a result, rare earth elements simply aren’t as rare as they once were.
Comments (5)
  • OK, sounds like a good development for users at least.
    19 Oct 2012, 06:48 PM Reply Like
  • This doesn't quite ring true. New production didn't just magically appear to drive down prices. You cannot ramp it up that quickly as investors in mining companies can tell you.
    20 Oct 2012, 01:08 AM Reply Like
  • I agree. And everything I've read about China says they will not be able to meet demand within a few years. Don't mistake short term prices for long term trends.
    21 Oct 2012, 11:33 AM Reply Like
  • Even after boosting their production which may happen on a turnkey with MCP only, "other countries", are far to meet the 40% the Chinese have confiscated, or am I wrong ? So at first, it may sound a great improvement. May be the reason of the drop on MCP share. But before long, it is to be noticed that "rare earths " are as rare as ever, or even more, as we need everyday more, and the transition to other substitutes still a long way ahead. So I may play MCP long. For Lynas and bro, a) a long way before they operate full steam, b) a "confidential" production. The basic figure is China harbors 95% of world known reserve, have a cheap labor cost, and sure not as environment friendly as other nations. And rare earth extraction is VERY polluting...
    20 Oct 2012, 03:22 AM Reply Like
  • I work on building the current upgrade on Molycorp Mountain Pass Ca.
    They have spent a lot of money i mean a lot of money. I do not think a company would invest so much if they did not see a future profit in rare earths.
    21 Oct 2012, 06:38 AM Reply Like
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