Rare earth – China raises export restrictions on completely surprising!

In December last year, Beijing vehemently defended the 2010 officially introduced for environmental reasons, export quotas for Rare earth, although this already 2013 was declared inadmissible by the WTO. The greater was the surprise, when the Chinese government announced to week beginning, continue to abandon the controversial export restrictions, in order to reduce state influence on the economy. In fact, the turning in of the regime, however, may have had other reasons.

Artificial scarcity classic own!

Because ultimately, the artificial shortage emerged as a classic own. Immediately after the introduction of the regulation, the rare earth prices attracted because of the monopoly position of the Middle Kingdom to such an extent, that the high-tech enterprises Rare Elements increasingly substituted in the established industrial countries by other commodities. The resulting demand decline had a historical price decline in the metals with the unpronounceable name result, which led to, that the export value 2014 There was a third lower than the previous year, although ten percent more rare earths were performed.

Taxes instead of prohibition!

Because it is not to be expected due to the lower demand until further notice with a significant recovery of rare earth prices, Experts suspect, that China imports in the foreseeable future export duties. In this way, exports could also control much better. Bottom line, the market expected to remain adequately supplied in the future, so that Rare Earth stocks are worth considering at best for gamers.

Marc Nitzsche is editor of commodity traders market newsletter. The Stock Report is a specialist for raw materials and offers concrete recommendations to buy with analyzes and price forecasts. More information at: www.rohstoff-trader.de

The above text reflects the opinion of the columnist resist. The finanzen.net GmbH assumes no responsibility for its accuracy and disclaims any recourse.

 

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