Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Can China's monopolisation of the rare earth market be reduced?

Dave Cohen, OilPrice.com
0 Comments| January 6, 2012

{{labelSign}}  Favorites
{{errorMessage}}

What does this percentage refer to?

97%

That's the percentage of global production of Rare Earth Elements (REEs) controlled by the People's Republic of China. But even with a virtual monopoly, sales are sluggish in the REEs business.

BEIJING (AP) — China announceda cut Tuesday in its rare earths export quotaas it tries to shore up sagging prices for the exotic metals used in mobile phones and other high-tech goods.

China accounts for 97 percent of rare earth output and its 2009 decision to curb exports while it builds up an industry to create products made with them alarmed foreign companies that depend on Chinese supplies.

In its latest quota, the Commerce Ministry saidexporters will be allowed to sell 10,546 tons of rare earths in the first half of 2012. That is a 27 percent reduction from the quota for the first half of 2011.

China's export restrictions havestrained relationswith the United States the European Union, Japan and other governments that have called on Beijing to remove its curbs and make its intentions clear.

Despite production and export curbs,rare earths prices in China have tumbled as U.S. and European economic woes dent demand for its exports. The government ordered its biggest producer to suspend output for a month in October to shore up prices.

But the restrictionshave made rare earths much more expensive abroad, giving Chinese makers of products that use them a price advantage and foreign manufacturers an incentive to shift operations to China.

In a sign of unusually weak demand, the Commerce Ministry saidactual Chinese exports of rare earths in 2011 totaled 14,750 tons for the first 11 months of 2011 — the equivalent of just 49 percent of the total annual quota.

It's been a while since I've written about REEs. See my October, 2010 post Rare Earth Elements — China Lowers The Hammer and follow the links therein. Finding a domestic producer of REEs has become a high priority for the United States, especially because the Department of Defense (DOD) is a key consumer of weapons requiring them. These statements are from Representative Mike Coffman (R, CO).

Continue reading this article on Oilprice.com



{{labelSign}}  Favorites
{{errorMessage}}

Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today

Featured Company