Just when you thought rare earth prices couldn't fall any furtherFollowing a World Trade Organization ruling, China in January announced it's abolishing its decade-old export quota system for rare earths.
But even before the lifting of quotas the country's rare earth exports started to expand rapidly. Customs data show export volumes grew 27.3% in 2014. At the same time the average export price of rare earth products plummeted 47.8% from the year before and the third year in a row of sharp declines.
China is due to lift export taxes on rare earths in May, which could add further pressure on prices.
KaiserJeep wrote:I share your concerns, but it's not possible to comply, more times than not.
How China's "Rare Earth" Weapon Went From Boom To BustNot so long ago, the U.S. went into full panic mode. China had reached the point where it controlled 97% of the world's rare earth elements—minerals that play a crucial role in manufacturing high-tech products. Were they right to fear that Beijing has a stranglehold over the global economy?
The Market Strikes Back
So, what happened? How did China suddenly lose its status as the Master of the Earth's Crust, poised to blackmail the U.S. economy? Well, for starters, there might not have been a crisis to begin with. Beijing's attempt to use its supply of REE as a political or economic weapon has proven to be ineffective.
The embargo that wasn't: What the Chinese government says and what Chinese companies do are often two different things. Chinese producers found various loopholes to evade the embargo.
Demand Destruction: Concerns over the reliability of REE supplies has prodded private sector innovations that are reducing demand: some users remembered that they did not need the high performance of specialized rare earth magnets; they were merely using them because, at least until the 2010 episode, they were relatively inexpensive and convenient.
New Suppliers: Investors in the United States, Japan and Australia were already opening rare earth mines and building new processing capabilities, and other investors were moving ahead on mines around the world in places like Canada, South Africa and Kazakhstan. Major investments made by the Lynas Corporation in Australia and Malaysia started delivering non-Chinese rare earths to markets last year. When rare earth prices surged in 2010, hundreds of companies around the world started raising money for new mining projects. Although Chinese producers will still contribute a substantial majority of rare earth elements, competition from the rest of the world will moderate Chinese pricing power.
As Gholz reminds us, the 2010 panic was just the latest in a series of exaggerated crises over natural resources. Before rare earth elements dominated the headlines, the U.S. was fretting over titanium imports from Russia. "When people briefly feared that rare earths would make the oil experience more like the 'new rule,' their fears turned out to be largely misplaced."
China's rare earth market share squeezed as competitors increaseChina, the world's biggest supplier of rare earth, is likely to see its global market share shrink to 65 percent in 2015 as the number of competitors increases.
Outcast_Searcher wrote:KaiserJeep wrote:I share your concerns, but it's not possible to comply, more times than not.
Like almost everything, recycling is a business, and if it doesn't benefit someone's bottom line, then it's not going to happen much, at least most of the time.
In my midsized midwestern city, for example, it's VERY difficult to recycle hazardous waste for an ordinary citizen. If you have computers, you can take those to the government recycling center most business days, and they'll take them since they can harvest the circuit boards.
Now. How about just about ANY other common hazardous material? Chemicals, batteries, paint, etc.
Nope -- they won't take that. I even tried to PAY to get them to take it and deal with it in a "responsible" way. Nope - they told me to go away (in so many words).
Now, supposedly, ONCE A YEAR for four hours, you can go stand in a huge line with all the suckers and try to get rid of your hazardous waste -- if the place doesn't close before you get through the line. (And how much gas do people burn in such a line, etc?)
I'll know when they're serious about properly disposing of hazardous waste when it's reasonable to do so on a regular basis. (And I won't be holding my breath expecting meaningful change).
And meanwhile, such things ARE disposed of. In the landfill or the storm drain, etc. Once again, government doing such a terrific job.
On Thursday, Molycorp filed for bankruptcy protection, having run out of cash after a precipitous and sustained slide in rare-earth prices. The company has become a cautionary tale for investors looking for the next hot thing, a lesson in how excessively high commodity prices can quickly reverse.
chilyb wrote:"In my midsized midwestern city, for example, it's VERY difficult to recycle hazardous waste for an ordinary citizen. If you have computers, you can take those to the government recycling center most business days, and they'll take them since they can harvest the circuit boards. "
Best Buy now has a very good recycling program. You can drop off almost anything at the customer service counter any time of day. They took my old 27" CRT, no questions asked.
more info here:
http://www.bestbuy.com/site/appliances-promotions/appliance-recycling/pcmcat239300050017.c?id=pcmcat239300050017
Rep. Duncan Hunter introduced a bill Tuesday to help restart American production of rare metals that are essential for high-tech defense gear.
China currently dominates the mining and production of “rare earths,” metals like neodymium, cerium, scandium, yttrium and 13 others that are essential producing magnets, lasers, batteries and metal alloys.
“The U.S. must no longer be wholly dependent on foreign sources of strategic and critical materials,” said Hunter. “The risk of this dependence on national security is too great and it urgently demands that we re-establish our depleted domestic industrial base.”
The Republican who represents east San Diego County noted that the last major American producer of rare earth metals declared bankruptcy in 2015, shuttered its California mine and processing plant and sold a portion of the assets to the Chinese. The U.S. dominated the market as recently as the mid 1980s.
Hunter’s METALS Act would allow domestic companies to access five-year, interest-free loans to develop advanced, environmentally friendly technologies for the production of strategic and critical materials.
The act would also prohibit the foreign sourcing of ammonium perchlorate, a chemical used as a rocket propellant.
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