NEW YORK, NY--(Marketwire -01/04/12)- Rare earth demand took a sizeable hit in the late stages of 2011, causing uncertainty heading into the New Year. According to reports from Forbes, low demand during 2011 was caused by "high rare earths prices from both heavy and light rare earths metals, which despite their fluttering prices, remain historically high." The Paragon Report examines investing opportunities in the Rare Earth Industry and provides equity research on Molycorp, Inc. (NYSE: MCP - News) and Lynas Corporation Limited (Pinksheets: LYSCF.PK - News) (ASX: LYC.AX - News). Access to the full company reports can be found at:
Last week The Chinese Ministry of Commerce announced its rare earth export quota for the first half of 2012. The ministry says that it will keep 2012 overseas sales quotas practically unchanged after exporters used only half the amount allotted for this year as buyers sought to cut usage and amid complaints over restrictions from trading partners.
Separately, the Ministry announced its decision to classify rare earth minerals into two categories: heavy and light rare earths. The change -- which was anticipated by analysts -- may prove to be a positive step for end users as the two groups have vastly different demand levels, Rare Earth Investing News reports.
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Last week, JPMorgan Chase & Co warned that rare earth prices could possibly remain low this year given China's pronouncement and expected higher production from Molycorp, Inc. and other rare earth producers. Molycorp, Inc. focuses on the production and sale of rare earth oxides from stockpiled feedstocks in the western hemisphere. Last month the company announced that it was granted authorization from the U.S. Bureau of Land Management to commence exploratory drilling at an occurrence of heavy rare earths located near its flagship rare earth manufacturing facility at Mountain Pass, California.
Lynas Corporation Limited, together with its subsidiaries, engages in the exploration and development of rare earths deposits and mineral resources. According to The West Australian, "Lynas is a step closer to clarity on the future of its rare earths project, with Malaysia's Atomic Energy Licensing Board putting its plans for a controversial processing plant out for public comment."
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- rare earths