Another way Molycorp tries to stay afloat while
rare earths prices are falling is by being a vertically integrated neodymium (used for magnets) supplier.
Obviously, Molycorp's management is aware of the strong correlation between its stock price and
rare earth prices, and it tries to combat that by marketing a proprietary chemical called SorbX and a range of similar products for water treatment.
More importantly, they specialize in commodities that are not easily tradable (like hogs or copper), and therefore their share prices tend to match
rare earth prices very closely because investors use them as a tool.
In Jan 2013, I wrote a Note stating that the most important factor to watch in this space is
rare earth prices.
Not exact matches
It's an exciting prospect, considering supply on
Earth for such
rare minerals as palladium — used for electronics and industrial purposes — is finite, pushing
prices to $ 784 an ounce on April 2.
Any deal would require approval from Lynas shareholders at the annual general meeting on November 30 but could help shore up the company's balance sheet after a sustained lull in the
prices for
rare earths.
Lynas» market capitalisation swelled to over $ 4 billion during the 2011
rare earths bubble but a collapse in
prices and problems with the company's processing plant saw its share
price tank.
Markets around the world saw
prices for precious metals,
rare earth elements and strategic metals deteriorate to the point where costs exceeded
price, and mines began to falter.
(Kitco News)- The story of
Rare Earth Elements (REE) is at the center of a sad and dirty chapter of the metals industry as it continues to see weak
prices despite strong demand.
Palladium — one of the
rarest elements on
earth and mined almost exclusively in Russia and South Africa — is the smallest precious metals market, making its
prices particularly vulnerable to such speculative trading.
I think China finally caught on to the fact that it was
pricing its
rare earth minerals at the uneconomic low - cost margin of extraction, not taking into account the environmental clean up costs or the replacement costs for these basically irreplaceable
rare metals.
The 1970's saw a rise in the
price of commodities generally, and gold acted as a barometer for how little people trusted the new financial system that replaced one of the
rarest metals on
earth with «made up money».
China's biggest
rare earths producer has suspended production in an effort to shore up plunging
prices of the materials used by makers of mobile phones and other high - tech products.
China's biggest
rare earths producer has suspended output in an effort to shore up slumping
prices of the materials used by makers of mobile phones and other high - tech products.
Sales volume actually increased slightly, as did base
pricing, but differences in exchange rates and a decline in what it can charge for
rare earth elements outweighed those improvements, the company said.
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Rare earths hopeful Arafura Resources has received a speeding ticket from the ASX after a 25 per cent surge in its share
price.
When Lynas started down the path of building the largest
rare -
earths processing plant outside of China several years ago, the
price of
rare earths was at heady levels.
However, after squeezing the
rare -
earths supply chain, the Chinese appear to have turned on the supply taps and the
price of
rare earths has plummeted.
Rare -
earth prices are set to extend their decline from records this year as buyers including Toyota and General Electric scale back using the materials in their cars and windmills.
Then, China «s exports declined by 70 %, spiking
prices up to 40 %, causing alarm among the economies and industries that rely on
rare -
earth metals and a so - called «
rare -
earth metals crisis».
For instance, remember all those stories last year about the looming scarcity and skyrocketing
prices of
rare earth metals?
But between the
price hikes and the threats of
rare earths shortages, mining operations in the United States and other countries could soon be on the rise.
What costs will be incurred is a question that is currently difficult to answer: «The anticipated financial advantage in recycling the magnets depends not only on the recycling process, but also on the
price development for
rare earth elements,» Diehl says.
«The higher the raw material
prices for
rare earths, the more it will pay off to recycle already existing materials.»
One year ago, when China announced it would limit exports, the commodity
price of all the
rare earths almost instantly shot up.
The
price of lanthanum has increased sevenfold, to $ 60 a pound, over the past year, and in 2010 China briefly suspended
rare -
earth shipments to Japan in a diplomatic dispute.
In April, China took steps to keep
prices high by extending a national ban on
rare -
earth exploration and the opening of new mines.
In recent years, China has set limits on its exports of
rare -
earth elements, driving up global
prices and forcing other countries to invest in exploiting their own resources so that they can supply their high - tech industries.
Whole
Earth Farms dogs food are indeed
rare gems, as they come with ingredients list streamlined to exclude corn, wheat, soy, artificial colors and artificial preservatives, with competitive
prices.
Hybrid cars and wind turbines need
rare -
earth minerals that come with their own hefty environmental
price tag.
U.S. officials will walk a fine line between demanding foreign access to
rare earths amidst China's demand, all the while remembering that the cheap Chinese
price of these metals still comes with a heavy environmental cost.
I wanted to buy some
rare earth oxides and noticed the unit
price is 6 or more times more expensive in the USA than if bought from China, even with international shipping included.