• Guest, The rules for the P & N subforum have been updated to prohibit "ad hominem" or personal attacks against other posters. See the full details in the post "Politics and News Rules & Guidelines."

All your rare earth metals are belong to us

Status
Not open for further replies.

1prophet

Diamond Member
Aug 17, 2005
5,282
502
126
Question :Who didn't see this coming?

Answer: the cheaper is better crowd

http://old.news.yahoo.com/s/ap/20111020/ap_on_hi_te/as_china_rare_earths
China rare earths supplier suspends production

BEIJING – China's biggest producer of rare earths is suspending production for one month in hopes of boosting slumping prices of the exotic minerals used in mobile phones and other high-tech products.
This week's move by Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-Tech might fuel tensions with the United States and Europe. They have questioned Beijing's decision announced earlier to limit exports while it tries to develop its own manufacturers of magnets and other products made of rare earths.


In a statement through the Shanghai Stock Exchange, Baotou Steel said it wants to "balance supply and demand" after prices for rare earths fell amid uncertainty about the U.S. and European economic outlooks.
Rare earths are a group of 17 minerals used in manufacturing flat-screen TVs, mobile phones, batteries for electric cars, wind turbines and weaponry.


China has about 30 percent of global rare earth deposits but accounts for 97 percent of production. Beijing has alarmed global manufacturers by reducing exports, prompting pressure from Europe and the United States to treat foreign and domestic buyers equally.


Baotou Steel accounts for 60 percent of China's rare earths production "so the impact on the market supply will be substantial," said Sun Fan, a rare earth analyst for Goldstate Securities in the southern city of Shenzhen.
Sun said that Baotou Steel also plans to buy rare earths to support prices.
"The dual measures of suspension and purchase will offer support for the rare earth prices and make the prices gradually pick up in the future," Sun said.


In China, prices of some rare earths have fallen sharply since June.
The price of neodymium oxide has declined 34 percent to $157 per kilogram, while europium oxide is down 35 percent at $2,904 per kilogram, according to Lynas Corp., an Australian rare earth producer.
Beijing is merging its rare earths producers to tighten control over production, sales and pricing.


It announced in June that Baotou Steel would become the only miner, refiner and seller of rare earths in the northern region of Inner Mongolia, a production center. It said 35 other companies there would be merged or closed.


Sichuan province in the southwest and Shandong in the east also have abundant rare earths deposits.


The United States, Canada and Australia also have rare earths but stopped mining them in the 1990s as lower-cost Chinese ores flooded the market.


Since then, Chinese officials have been concerned that uncontrolled exports were allowing Western and Japanese producers of lightweight magnets and other products made of rare earths to capture most of the profits.


Companies are restarting production in Canada, California, Russia and elsewhere but it will be some time until those supplies make it to market.
In September, China's Ministry of Land and Resources ordered a further tightening of controls on exploration, mining and sales of rare earths, which it called China's "21st century treasure trove of new materials."
obligatory picture

 

JTsyo

Lifer
Nov 18, 2007
10,937
230
106
I don't see an issue. If the cost of the Chinese metals go up then it'll become profitable to mine in the US, Canada and Australia. Also if you Chinese mine out their supply then they'll have to buy from outside sources for their industry.
 
Oct 16, 1999
10,490
3
0
I don't see an issue. If the cost of the Chinese metals go up then it'll become profitable to mine in the US, Canada and Australia. Also if you Chinese mine out their supply then they'll have to buy from outside sources for their industry.
Folks aren't going to invest in expanding mining infrastructure elsewhere when all China has to do is ramp up production again to undercut them.
 

Macamus Prime

Diamond Member
Feb 24, 2011
3,108
0
0
Aw great - now capitalists won't be able to make a hand over fist profit!!

Wait... unless they now increase their prices!! Quickly, increase prices!!! They can still make a killing, to make more money, in order to create more jo,.. oh God, I can't even say it anymore.

{:-(
 

Patranus

Diamond Member
Apr 15, 2007
9,280
0
0
Its a shame that the federal government insists on halting the development of our own resources.
 

Patranus

Diamond Member
Apr 15, 2007
9,280
0
0
I don't see an issue. If the cost of the Chinese metals go up then it'll become profitable to mine in the US, Canada and Australia. Also if you Chinese mine out their supply then they'll have to buy from outside sources for their industry.
Your assumption is that the EPA/Obama will allow them to mine in the United States.
 

Screech

Golden Member
Oct 20, 2004
1,202
6
81
While protectionism is often a bad road to go down, there are instances where it really is called for......this being one of them.
 

K1052

Lifer
Aug 21, 2003
36,591
10,560
136
Your assumption is that the EPA/Obama will allow them to mine in the United States.
Molycorp already has all it's permits to mining at Mountain Pass and will have their new refining plant operational in 2012 (which is also fully permitted by the EPA).
 
Last edited:

BladeVenom

Lifer
Jun 2, 2005
13,540
16
0
I don't see an issue. If the cost of the Chinese metals go up then it'll become profitable to mine in the US, Canada and Australia. Also if you Chinese mine out their supply then they'll have to buy from outside sources for their industry.
You can't just reopen industries overnight that have been shut down for years.

Since they control the supplies of the raw materials that some industries can't do without they can now use their monopoly to advance Chinese manufacturers at the expense of others.
 

Ninjahedge

Diamond Member
Mar 2, 2005
4,148
1
76
Agree w/BV. You shut down an operation it costs money. You start up again it takes time AND money. China will try to ramp up costs of a depressed material (depressed not even from ACTUAL supply and demand, but speculated drop in demand due to the recession. Thanks Investment Bankers!)

So this is a double fuck. First, artificial inflation of a materials worth, and then coupled with an international WalMart-esque undercutting the competition into almost complete monopoly.

Tariffs on rare earths would be the only way around this, but we don't want our cell phones and flat screen TVs to cost more, now do we?

THE HORROR!
 
Status
Not open for further replies.

ASK THE COMMUNITY