Copying and distributing are prohibited without permission of the publisher

Rare earth supply fears become reality

July 27, 2010 - 00:00 GMT

KEYWORDS: China , rare earth elements , REE , magnets , export quota

Global fears of a rare earth supply shortage have been made a reality by China after it dramatically cut its export quota by 70% for the second half of the year

Global fears of a rare earth supply shortage have been made a reality by China after it dramatically cut its export quota by 70% for the second half of the year.

China, which controls 95% of global supply, has effectively closed its doors on exports for 2010 leaving manufacturers of critical high strength magnets, oil refineries, and metal alloy producers with no fresh supply.

This leaves 7,976 tonnes of approved exports when at the same time last year the industry had 28,417 tonnes. This significant overnight squeeze in supply is set to see prices rocket as buyers fight for the limited tonnages.

And this is not the only development in China to impact the industry.

Firstly, it was reported that the Chinese government plans to publish official monthly prices for rare earths mined in the southern provinces in a bid to prevent fierce competition between domestic producers.

Next,...

All material subject to strictly enforced copyright laws. © Euromoney Institutional Investor PLC.


subscribe to this feed Comment & analysis

  • LORD COPPER: Glencore-Xstrata will be a merger of more-than-equals

    Glenstrata, X-Core, Davenberg, Mivan? Whatever the result of the Glencore-Xstrata merger is to be called, finding a name is an inevitable step after the IPO.

  • COMMENT: Glenstrata still has to break the mould

    The news that Glencore and Xstrata are in merger talks would only come as a surprise to someone living under a rock, and only then if said rock did not contain any valuable minerals. But now that talks of a tie-up of the world’s largest metals trader and its fourth largest miner have finally moved into the boardroom, hypothetical questions have become real, and the answers are far from certain.

  • APEX FULL YEAR 2011: Base metal forecasts: astounding accuracy

    Astounding upon astounding: that is how the 2011 leaderboard for Apex, the Metal Bulletin service that tracks the performance of over twenty top base metal price forecasters, appears when you consider it coldly.

Most readMost emailed

Popular Searches on MB

MB Glossary


From Aluminium to Zinc...
Search this free glossary on metals