Friday, December 31, 2010
Understanding China's Rare Earth Metals Policy
The Chinese seem to have legitimate reasons for controlling supply, starting with their own burgeoning domestic demand derived from multiplying middle class development. It seems the strategic importance of the elements will ease legislative and regulatory restrictions that had helped to shut down US production previously, in favor of cheaper Chinese sources. However, for now, the demand/supply equation has been wildly swayed, and prices have rocketed. For instance, in 2003, you could get a pound of dysprosium for $6.50, though I don't know where. Today it runs upward of $132 a pound. Thus, capital is running to rare earth miners and companies whispering of moving some of their mining resources to rare earth production.
Click here to read his entire essay.
