China Increases Rare Earth Export Quota for First Half of 2012
China has announced its export quota for rare earths for the first half of 2012. The quota is the first increase in six years.
China has announced its export quota for rare earths for the first half of 2012. The quota is the first increase in six years.
Rare earth prices have been falling over the past couple of months. In an attempt to stop the price plunge and take back control, Chinese rare earth companies have stopped production and the government has announced new regulations. However, this may not stop the downward momentum.
The Chinese government has repeatedly vowed to shut down the illicit rare earth mining operations, however, the task is proving to be difficult to achieve. This has begged the question of how illegal and clandestine these rare earth operations truly are.
As the trend of tight supply in the rare earth market persists, high prices with seemingly no end in sight have have forced some companies to relocate to China, suspend or even halt production.
Supplies of rare earth elements are still incredibly tight, helping to maintain the high prices of the metals. It is only August and already one of the biggest REE suppliers in China has stated that the company is going to halt production for the year to comply with the restrictions.
July was an important month for the rare earth market. In perhaps the most significant news of the year, China released the rare earth export quota for the second half of 2011, sending the market into a frenzy yet again. Other top headlines included the continuing rise of rare earth prices, and the alleged Japanese discovery of rare earth deposits on the floor of the Pacific Ocean.
In an exclusive interview with Rare Earth Investing News, Gareth Hatch, Founding Principal of Technology Metals Research, and Ryan Fletcher Director of Corporate Development for Zimtu Capital Corp., discuss the recent quota data and its effects on the rare earth supply chain.
In an exclusive interview with Rare Earth Investing News, Christopher Ecclestone mining strategist for Hallgarten and Co, shares some insight on the future trade disputes with China and the effect on rare earth mining firms.
The Market Shares Rare Earth/Strategic Metal ETF has outperformed a basket of rare earth mining stock. However, the fund is more than a pure rare earth investment. Since trading started in late October 2010, the fund is up 31 per cent and is outperforming many of Van Eck’s other ETFs.
Investors looking to invest in mining operations should look at the stratification of elements in the deposit and take into account the current and future demand for the various elements, be they heavy or light.
Get our independent commentary on rare earth trends and companies delivered to your inbox.