Commercial War: panic in the market of rare metals

Commercial War: panic in the market of rare metals

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China may restrict supply to the US industry China’s rare metals are used in high-tech products that are key to US national security. A hidden threat to American interests has been seen by US media in CNBC’s statement to the National China Commission for Development and Reform (NDRC), which says the government will not allow the use of rare metal products at the expense of the country.

The CNBC recalls that Chinese President Jin Zinpin recently reviewed JL MAG Rare-Earth Co., a local mineral processing company and processing company. That, according to American journalists, means that Chinese authorities are preparing to ban or limit supplies of valuable raw materials to US companies.

As a result of the publication, a mild panic appeared on Wednesday stock exchanges in Southeast Asia. Shares of mining and processing companies have begun to grow. Quotes JL MAG Rare-Earth rose by 10%, while the shares of Innuovo Technology rose by 9.95%. One of the few non-Chinese rare-metal companies, Australian Lynas, has increased its market capitalization by more than 10%.

The US and Chinese traffic in the trade of rare metals is relatively small. Missing accurate data, but it is assumed that the United States imports about 4000 tonnes of raw materials annually, estimated at around $ 175 million, and the problem is that rare metals are used in high-tech products, for example in electronics.

The interruption in the supply of such metals will lead to problems in sectors related to US national security. China does not for the first time restrict the supply of rare metals in response to politically motivated action by other countries.

This happened, for example, in 2010 when Japan captured the Chinese captain. The scenario of US pressure by creating an artificial shortage of rare metals will not be new. According to analysts, rare metals exist everywhere – they just have to start their mining and thus reduce dependence on China.

In the past, the United States produced rare metals, but under the pressure of environmental protection by the public, this activity is suspended, analysts recall.

Commercial War: panic in the market of rare metals

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