Global Market Commentary, Analysis and Investments
The young Marine sniper lays motionless in a shallow bed of sand and broken rock on the mountainside in Afghanistan. The sun blazes down, and he’s sweating. He’s spent the morning scanning a valley for Taliban fighters who keep a low profile in their maze of spider holes.
After a while, another Marine – the spotter – says, “I’ve got him. Just next to the tree, to the left of that stone house.”
[Read more...]Over the past couple of months, we’ve learned plenty about the future of Chinese demand for rare earths. Bottom line is that the Chinese will likely become net-importers of rare earths within three years – certainly within five years.
What does this mean for rare earths? Chinese export volumes will continue to decline. Not only will there be less Chinese rare earths product for sale, but the Chinese will compete for at least some of the very same rare earths product as everyone else. Big problem, right?
[Read more...]The year was 2008…
Economically, the world was still wallowing in the depths of a frighteningly real recession. For many, the frighteningly false recovery that would follow was as yet unimaginable. In many ways, for many of us, it still is.
Over in the political sphere, a young man promising “change” was beginning to drum up some popular support in the presidential elections. For many, the possibility of change in Washington seemed unimaginable. In many ways, for many of us, it still is.
[Read more...]Let’s think back to September 2010. Japan confronted China at sea in a dispute over fishing rights. The Japanese arrested a Chinese fishing boat captain. The Chinese soon imposed an embargo on rare earths exports to Japan.
Suddenly, rare earths – a relatively obscure set of industrial minerals, oxides and metals – became the stuff of high international attention and intrigue. It became common knowledge that China controls about 97% of the world’s rare earths output. Overnight, the dire industrial and political implications of that geological monopoly became apparent.
[Read more...]The stakes just got higher in the 3-D chess game China's playing for natural resources. On one dimension, the Middle Kingdom is on the offensive. But on another, it's playing strictly defense…
Beijing is ordering state-owned businesses to explore a bid for PotashCorp (POT), the Canadian fertilizer giant that's already fending off a hostile bid from BHP Billiton, the Anglo-Australian mining giant.
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Awaiting the Eventual Return of the Rare Earths Market
China is putting the squeeze on rare earths…again. And unless you have a large stash of light bulbs around the house, you’re going to feel this one personally.
“China is temporarily shutting down most of the industry,” reports The New York Times — closing or nationalizing dozens of rare earth producers.
[Read more...]