Mineweb reported that many rare earth companies stocks are trading as lows that haven’t been seen in over a year.
Lisa Reisman, co-founder and executive editor of the highly acclaimed metals website MetalMiner, commented:
To some extent, the bubble has burst. But this is true for a number of commodities, not just REEs. The current lows are directly related to the same policy changes that caused the upswing in the first place. When China, the 800-pound gorilla in the sector, shifted to a policy limiting exports, buyers tended to hit the panic button and bought forward for a long period of time. Prices got a boost at the time, but those large buyers were then out of the market while they subsisted off their stockpiles. Thus, we would expect the stocks of the REE producers to fall a little bit.
Click here to read the full MineWeb report.