Australia's largest stock trading and investment forum Australia's #1 stock forum

PM8

Click for more information

0.00%

$1.66 pensana plc

Media, page-1457

First 1457 Last

Share
Profile

Follow
ChinaSyndrome

3,603 Posts.

1893

06/12/20

11:02

Post #: 49373322
Share

Originally posted by skijapan: ↑

Prices Of Chinese Rare Earths Are Soaring
ByMINING.com- Dec 05, 2020, 4:00 PM CST
BMO Capital Markets says that a surge in the price of Chinese rare earth metals in November is a reflection of the geopolitical tensions between that country and the developed world.Commenting on the sudden price gains in a research note, BMO’s commodity analyst Colin Hamilton also said that as nations around the world consider self-sufficiency in rare earths and other critical minerals, while also enacting more trade restrictions and economic protectionism, the market “is set for long-lasting transformation over the coming years, one that we believe will likely lead to a gradual erosion of Chinese dominance in processing capacity.”
November saw the prices of all major Chinese-sourced rare earths spike, but especially those used in magnets. In particular, the research note mentioned neodymium, which is the most common rare earth used in making magnets, which rose by 27% since early in November, up over 50% year to date. Several other key rare earths also increased in value last month, including dysprosium (+17%), gadolinium (+9%) and terbium (+27%).
Another factor in the price surge is a new law that came into force in China on December 1, Hamilton noted. Known as the Export Control Law, it creates new regulations that give the government more control over such exports as technology and rare earths.
“Market participants are increasingly of the view that the introduction of the new law will lead to a restriction of rare earth-based exports from China to key partners including the U.S., on the pretext that it is safeguarding its national security,” Hamilton stated.
Though exports of Chinese rare earth metals have been decreasing in recent years, Hamilton’s report pointed out that rare earth-based magnet exports have actually been trending up because of increased global demand, including by the U.S. In anticipation of concerns that the Chinese government could use the new law to further curtail exports, “key customers in the U.S. (or perhaps the State Reserve) have seemingly been buying up as much material as possible, with U.S. rare earth magnet imports reaching 480 tonnes in September, the highest monthly total since 2016.”
https://oilprice.com/Metals/Commodities/Prices-Of-Chinese-Rare-Earths-Are-Soaring.html

Expand

Hi Ski, Having had first hand experience in dealing with Chinese Bureaucracy, they use "Law" as a last resort. However they have developed the British method of suffocating any progress and development they don't want into to a fine Art l. Permits, Licences, Paper work and opening times at issuing locations can all be used to great effect to ensure that anybody wanting to "Import, Export, or just move house" can be made to run around in circles for almost ever.

I suspect that China will take some time to first frustrate exporters before anybody actually says 'No you can't sell that to the Lo Fan !'

PM8 Price at posting: $1.21 Sentiment: Buy Disclosure: Held
7 Upvote

0 Great analysis

Reply

Top Stories

LRV

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

CMX

ChemX Materials kicks off first stage works at WA high purity alumina pilot

Microcap Wrap: 5 explorers with news out today

AVA

Ava Risk Group expands US presence with A$0.7M Substation Deal

LU7

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

SVL

Silver Mines models five new calderas close to 396Moz Bowdens deposit

RCE

Recce's R327 found effective against E.coli during clinical trial

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

There are more pages in this discussion • 415 more messages in this thread...

First 1457 Last

Add PM8 (ASX) to my watchlist

SPONSORED BY