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Dacha takes centre stage after rare earths squeeze

July 27, 2010 - 09:42 GMT Location: London

KEYWORDS: Dacha Capital , ETF , stockpile , rare earths , indium , SMG

Dacha Capital’s rare earths stockpile has started to look more attractive following China’s decision to slash rare earth export quotas for the second half of the year by more than 60%, market participants told MB

The quota, announced in early July, was cut to just under 8,000 tonnes for the second half, compared with around 22,000 tonnes for the first six months of the year, taking the 2010 total to 30,258 tonnes compared with 50,145 tonnes in 2009. Dacha’s plan to create an exchange-traded fund (ETF)-like structure for rare earths, and a similar move by SMG Indium Resources in the indium market, have been met with scepticism. Critics say the markets are not liquid enough for the model to work. But with supply from China constricted even further, a...

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