Rare Earth Stocks On Watch As China's Top Producer Seeks to Boost Prices (MCP) (REE)
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Rare earth stocks aren't doing much currently, but that could change based on the actions of China's top rare earth producer.
China's Baotou Steel Rare-Earth Hi-Tech said it halted smelting and separation operations in an effort to boost prices.
"In the circumstances of a continuing fall in prices, tepid demand and oversupply, Baotou will halt smelting and separation at its processing units from Oct. 19 to further stabilise the market and balance supply and demand," Baotou said in a statement.
If Baotou is successful, this could lift prices of rare earth minerals which have fallen sharply recentLY, after a record run-up over the past few years. Alternatively, the action by the company could suggest that they see much further weakness in the market ahead.
In the U.S., Molycorp, Inc. (NYSE: MCP) is up 0.8% and Rare Element Resources Ltd. (AMEX: REE) is down 2%.
China's Baotou Steel Rare-Earth Hi-Tech said it halted smelting and separation operations in an effort to boost prices.
"In the circumstances of a continuing fall in prices, tepid demand and oversupply, Baotou will halt smelting and separation at its processing units from Oct. 19 to further stabilise the market and balance supply and demand," Baotou said in a statement.
If Baotou is successful, this could lift prices of rare earth minerals which have fallen sharply recentLY, after a record run-up over the past few years. Alternatively, the action by the company could suggest that they see much further weakness in the market ahead.
In the U.S., Molycorp, Inc. (NYSE: MCP) is up 0.8% and Rare Element Resources Ltd. (AMEX: REE) is down 2%.
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