"What we are witnessing is the slow death of the European project," says Athanasios Orphanides, former Central Bank of Cyprus Governor. What we have, he says, are decisions being taken in Germany sequentially spreading misery to the periphery, and now it's blackmailed the Cypriot government into confiscating its citizens deposits. No one in a small or weak country should feel safe. [View news story]
I guess he's not pleased he'll be receiving his annual caviar gift basket from Gazprom and other Russian friends...
China sets its H1 2013 export quota for rare earth resources at 15.5K metric tons to be split among 24 domestic producers. The quota is not always met due to weak global demand; China exported only ~13K metric tons of rare earth ores, metals and compounds in the first 11 months of this year, less than half the full-year 2012 quota. [View news story]
The quota has been largely ineffective due to smuggling, which is the major reason why this news surfaced this morning:
Ford (F) says it’s cutting consumption of rare earths used in its hybrid and electric cars by 500K lbs./year and will save hundreds of dollars per car in the process. But shares of rare-earth leader Molycorp (MCP +5.6%) shoot higher anyway, adding to gains a day after China announced a 40% cut in the number of permits to mine rare earths. REE +5.7%, AVL +4.5%. [View news story]
Of all the global automakers, Ford is the furthest behind in electric car technology. The general reviews of the electric Ford Focus, which was only produced in small numbers last year, was quite poor. There were very little design changes to the model, and the technology was simply crammed into any space to make it work. Their upcoming model will use this technology, but it will use significantly less technology than other comparable models. Hence, it will have a lesser need for rare earth elements and other critical elements.
Though gas prices are shooting higher, U.S. demand for hybrid cars is declining, as consumer opt for traditional cars that can promise similar gas mileage at a lower price. Hybrids accounted for just 2.2% of U.S. auto sales last year, down from 2.8% in 2009. Meanwhile, demand for fuel-efficient traditional cars such as the Chevy Cruze (GM) and Ford's (F) Fiesta and Focus is surging. (yesterday) [View news story]
I get the impression this story has been overplayed by the media and the US Auto industry. Has any journalist realized that these numbers overlook the major fact that Japanese auto sector was haunted by issues last year on a historic scale? All Japanese auto companies suffered shortages of parts and factory production from the Fukushima disaster and flooding in Thailand. The cost of materials to produce these cars also surged, preventing them from providing the 'no money down for 60 month' deals that are currently being flogged at your local GM and Ford dealerships. A friend of mine who manages sales at a Japanese luxury car dealership told me last year, 'we can't compete against the US and German companies.' He said they didn't have enough cars, and not enough new cars, while many competitors offered substantial discounts and credit arrangements that they could simply not afford to offer. Overall, I'm disappointed with the media for missing these facts.
"What we are witnessing is the slow death of the European project," says Athanasios Orphanides, former Central Bank of Cyprus Governor. What we have, he says, are decisions being taken in Germany sequentially spreading misery to the periphery, and now it's blackmailed the Cypriot government into confiscating its citizens deposits. No one in a small or weak country should feel safe. [View news story]
China sets its H1 2013 export quota for rare earth resources at 15.5K metric tons to be split among 24 domestic producers. The quota is not always met due to weak global demand; China exported only ~13K metric tons of rare earth ores, metals and compounds in the first 11 months of this year, less than half the full-year 2012 quota. [View news story]
http://bit.ly/TuogXs
Ford (F) says it’s cutting consumption of rare earths used in its hybrid and electric cars by 500K lbs./year and will save hundreds of dollars per car in the process. But shares of rare-earth leader Molycorp (MCP +5.6%) shoot higher anyway, adding to gains a day after China announced a 40% cut in the number of permits to mine rare earths. REE +5.7%, AVL +4.5%. [View news story]
Though gas prices are shooting higher, U.S. demand for hybrid cars is declining, as consumer opt for traditional cars that can promise similar gas mileage at a lower price. Hybrids accounted for just 2.2% of U.S. auto sales last year, down from 2.8% in 2009. Meanwhile, demand for fuel-efficient traditional cars such as the Chevy Cruze (GM) and Ford's (F) Fiesta and Focus is surging. (yesterday) [View news story]