In a slow trading week, the talk and news on rare earths has been fast and furious.
Reports of China limiting exports have roiled several stocks in the space. On Tuesday, Molycorptouched a new high of $55.22 before dropping about $8, erasing $300 million in market cap.
China has said that no firm decisions have been made on 2011 exports, but it seems more than likely that exports will be reduced. However, the news on Wednesday is that it might be less than most analysts expect.
Rare earth metals are some of the more obscure elements on the periodic table, used in all sorts of technology and green tech products—ranging from high-powered magnets in wind turbines to your iPhone.
China controls 97 percent of the global marketplace, but has decided it wants to keep more of it inside Chinese borders for domestic consumption. The limitation of exports—and the threat to cut even further—has led to a global mineral rush. Rare earth companies are frantically trying to locate and mine the material (an expensive endeavor), while tech companies are just as manic to make sure they lock in future supply agreements.Page 1 of 3 | Next Page