tickerspy.com Staff, On Friday June 17, 2011, 12:36 pm EDT
Shares of Molycorp (NYSE: MCP - News), the largest U.S.-based rare earths miner, continue to struggle and are down another 1% today despite news that prices for the 17 elements used to make electric cars, military devices, smartphones and scores of other high-tech gadgets doubled in the past two weeks as China, the world's largest rare earths exporter, continues to exert a tight grip on rare earths production and exports.
The Rare Earths Stocks Index is flat on the news and has tumbled nearly 15% in the past month. The cost of dysprosium oxide, used in magnets, lasers and nuclear reactors, has risen to about $1,470 a kilogram from $700 to $740 at the start of the month, Bloomberg News reported, citing Industrial Minerals.
China has already pared export quotas to 30,000 tons from 35,000 tons last year and Goldman Sachs said last month more quota reductions could be on the way, which would move prices even higher, Bloomberg reported. The price of europium oxide, which is used in the production of plasma TVs, has jumped to as much as $3,400 per kilogram from $1,260-$1,300 per kilogram, according to Industrial Minerals.
On Thursday, Chinese officials said they expect rare earths supply to outpace demand within five years on the expectation new projects in countries such as Australia and the U.S. will help curb the current supply/demand imbalance. Still, with China continuing to restrict rare earths exports and strong demand, rare earths prices are likely to continue rising in the near-term.