Monday, October 4, 2010

"Rare Earth Mineral Prices Explode In Q3" (RHDAF.PK; LYC.AX; MCP)

A point we touched on in "Hike In Rare Earth Prices As China Quotas Bite" (How's Cerium Oxide $8000/tonne to $36,000/t in two months grab ya?).

From ZeroHedge:
Ever heard of the oxides of Lanthanum, Cerium, Neodymium, Praseodymium and/or Samarium? With price surges between 250% and 600% in one quarter, you may wish you have. The recent pissing contest between Japan and China, which culminated with a temporary export ban in rare earth metals such as those named above, translated in ridiculous price jumps in some compounds most have never even heard of, let alone traded, yet which would have made not only the year, but the decade for hedge funds invested in them.

And with China producing more than 90% of the world's supply of rare earth minerals, coupled with increasing probability of escalating global (and regional) trade wars, it is distinctly possible that the gains recorded recently in gold will be dwarfed by the imminent Samarium Oxide bubble, which 3 months ago was trading at $4/kg and is now over $30.

Moody's has some interesting commentary on the rare earth situation in the context of one of the biggest developers and producers of specialty chemicals in the world: Rhodia....MORE
Chinese Rare Earth Stocks Limit Up in Weak Chinese Markets

Rare Earth Metals: "Chinese Institutional Investors Look At Rare Metals Overseas" (AVL.TO: LYC.AX; MCP; UCU.V)