German Firms Urged to Cooperate on Commodities

Source:

"Major concern that China will restrict REE exports."

German companies should cooperate on commodity sourcing and should set up some form of organization to help work together, Economy Minister Rainer Bruederle told German media on Tuesday.

"There is a danger that we will face an iron ore-OPEC or rare ores-OPEC," he was quoted as saying by German television channel ARD.

Consumers in many industrial countries have noted with concern how commodity-hungry China has been buying up supplies, especially with major deals with Africa.

There has also been major concern that China will restrict its own exports of rare earths used in a wide range of high tech industries.

German industry needed some form of organization which could find commodities and was able to agree contracts, Bruederle also said in an advance release of a report in German daily Handelsblatt.

But the government itself was not able to undertake such work, he told the newspaper during a visit to Canada.

In October, the German government agreed a new commodities strategy and set up a commodities advisory agency to help industry find raw materials.

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