Output cut lifts stock price of Chinese giant

HONG KONG -- The share price of China Northern Rare Earth (Group) High-Tech jumped Wednesday on expectations that production cuts will lead to higher prices for rare earth metals.
The stock climbed 3.16% to close at 14.69 yuan ($2.31) on the Shanghai stock market.
  The major Chinese rare earth producer plans to reduce 2015 output by 10% compared to production quotas set by authorities, reported state-run Xinhua News Agency and other Chinese media. Other producers appear to be following suit, fueling speculation that sluggish prices for rare earths will get a boost from lower supply.
Related companies got a boost. Inner Mongolia Baotou Steel Union rose 8.53% to 4.20 yuan while Xiamen Tungsten surged 10.01% to 18.79 yuan.
Prices for rare earths have slumped around the world in recent years partly due to a decrease in demand as users made efforts to develop alternatives.

http://asia.nikkei.com/Markets/Equities/Output-cut-lifts-stock-price-of-Chinese-giant