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Chinese Rare Exports Contraction Continues to make Japan Fret

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Chines Rare Exports in October have dropped dramatically to 3 figures from around 3660 tons in September reflecting  the Chinese-Japan Tensions and Export Quotas imposed by China for the 2nd half of 2010.While Japan has been frantically looking out for rare earth mineral resources in places like Mongolia,Kazakhstan,India and Vietnam,it will take around 4-5 years to bring a Rare Earth Mine online.Meanwhile the shortage of REE has led to a shooting up in the prices of Rare Earth Minerals with prices of Cerium Oxide up almost  7 times.The stock frenzy in listed REE stocks like Molycorp,Lynas has somewhat gotten subdued but the deep imbalance in the supply-demand fundamentals will keep this theme alive.

Note REE are quite abundant however it takes a long time to prospect,estimate,get approvals,mine and process these minerals.Technology for Mining and Processing of these Rare Ores is complex and restricted to China and Japan.Note Japan is the main importer of these minerals and has been hurt the most.South Korea does not seem to be too harried with Chinese Export Restrictions and USA is mostly concerned with supplies to its Defense Industry.However Europe and USA remain concerned about the long term effect of Chinese monopoly over the resources and technology of this critical raw materials.

China’s Rare-Earth Exports Plunge 77% After Quota Cut – Reuters

Rare-earth exports from China, the world’s biggest supplier, declined 77 percent in October from a month earlier after the government reduced shipment quotas for the second half.

Exports were 830 metric tons last month compared with 3,660 tons in September, the General Administration of Customs said in an e-mail. Total exports were 32,990 tons in the first 10 months, according to the e-mail, which was sent yesterday.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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