March 23 -- China posted a 568 percent year-on-year surge in the value of rare earth exports to $314 million in the first two months of 2011, reports Oriental Morning Post, citing a Wall Street Journal report.
The volume of rare earth exports inched up 0.3 percent to 7,084 tons while the prices of rare earth minerals were on a uptrend since the beginning of 2011.
According to a report by Guolian Securities, the prices of neodymia, dysprosium and praseodymium rose 4.3 percent, 9.5 percent and 12 percent last week. The report attributed the price increases to the higher demand for rare earth permanent magnets following the earthquake and tsunami which struck Japan.
Chinese government policies which place strict controls on the exploration and exports of the rare earth minerals are the major causes of the almost six-fold surge in export value, said China Enfi Engineering Corporation.
Under the new rules, buyers will have to first make advance payment before waiting for delivery of the rare earth minerals. The waiting period could be up to half a month or longer, according to enterprises in the rare earth industry.
An expert at China Enfi Engineering Corporation added that the mining, separation and smelting processes of rare earth minerals have not incorporated the cost of environmental protection measures.
Shares of Inner Mongolia Baotou Steel Rare-Earth Hi-Tech (600111) rose 2.78 percent to close at 85.63 yuan today.