China and Rare Earths—Monopoly for Now
Source: Oilprice.com, John Daly (8/10/11)
"Despite fears of Western capitalists, Beijing apparently has no immediate plans to curtail supplies."
First, the bad news: China's constrained rare earth supplies will be an "irreversible trend" and prices will remain at high levels, according to Zhang Zhong, general manager of Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co.
Zhang should know, as his concern is China's leading rare earths producer—the Baotou mine produces more than 95% of China's production, while Chinese mines currently account for 97% of global supplies.
The increase in global demand for rare earth metals has sent prices soaring in world markets.
Now, the good news: Despite fears of Western capitalists, Beijing apparently has no immediate plans to curtail supplies. . .View Full Article