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Rare Earth Market Trends

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"Very little has changed in the REE market this year. Tight export quotas have only prolonged the supply-side tightness for the elements, pushing prices higher still."

Rare Earth Investing News, Michael Montgomery

Very little has changed in the rare earth market over the course of this year. After shrinking rare earth production and export quotas in 2010 sent prices for the various metals in the group sky high, companies around the world were sent into a frenzy searching for supply. Threats from the U.S. and Europe to China over a possible WTO trade dispute did very little to change China's trade policy. In July the country released the 2nd half rare earth export quota, which doubled the quota year-over-year, however, reduced the year's total amount of exports.

This continuation of tight export quotas has only prolonged the supply side tightness for the elements, pushing prices higher still. The only relief for the high prices may come from end users halting production, in turn cutting demand for the metals. This relief will most likely be short lived at best. . .View full article

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