A deficit of 10-15,000 tonnes is expected to hit the industry
in 2010 after China cut exports
Global fears of a rare earth supply shortage have been made a reality by China after it dramatically cut its export quota by 70% for the second half of the year.
China, which controls 95% of global supply, has effectively closed its doors on exports for 2010 leaving manufacturers of critical high strength magnets, oil refineries, and metal alloy producers with no fresh supply.
This leaves 7,976 tonnes of approved exports when at the same time last year the industry had 28,417 tonnes. This significant overnight squeeze in supply is set to see prices rocket as buyers fight for the limited tonnages.
And this is not the only development in China to impact the industry.
Firstly, it was reported that the Chinese government plans to publish official monthly prices for...