Molycorp (MCP) (SHZ) (REE) (XING) (GMO) (AVL) Closed Mixed on Volatile Day

Rare earths miners like General Moly (AMEX:GMO), Avalon Rare Metals (AMEX:AVL), China Shen Zhou Mining & Resources, Inc. (AMEX:SHZ), Rare Element Resources Ltd (AMEX:REE), Qiao Xing Universal Resources, (Nasdaq:XING) and Molycorp, Inc (NYSE:MCP) closed mixed Thursday as investors have been uncertain over the soaring mining sector in general, along with rare earths, as well as gold and silver as well.

Most believe that rare earth supply will remain tight for at least five years, even with the media hype of all the projects coming on line. Those proposed projects will take years to go through the process before production is ready to begin.

According to Molycorp CEO, Mark Smith, there will probably be two coming on stream within that five-year period. During that same time rare earths demand is projected to double annually.

That means those companies that already have operations going should enjoy solid pricing power during that season.

As to the silly proposal by big-government politicians concerning the Rare Earth Supply-Chain Technology and Resources Transformation Act, the last thing we need is for the government to use yet another so-called crisis or "national security" issue to expand government in a useless manner as is now being attempted.

The markets should and will sort it out, as it has already began to do.

Market Vectors Rare Earth/Strategic Metals ETF (NYSE:REMX) closed at $27.85, falling $0.18, or 0.64 percent.

Titanium Metals (TIE) (CNAM) (GMO) (REE) Close Mixed as Rare Earths Remain Tight

Rare earths miners have been jumping since the announcement by China it's going to cut back on exports in a major way. Some of them have been pulling back after the recent surge, as companies Titanium Metals (NYSE:TIE), China Armco Metals, Inc. (NASDAQ:CNAM), General Moly (AMEX:GMO) and Rare Element Resources Ltd (AMEX:REE) closed mixed Thursday.

The majority believe that rare earth supply will remain constrained for at least five years, even with the media hype of all the projects coming on line. Those proposed projects will take years to go through the process before production is ready to start.

Molycorp CEO, Mark Smith recently said that there will probably be two coming on stream within that five-year period. During that same time rare earths demand is estimated to double annually.

That means those companies that already have operations going should enjoy solid pricing power during that season.

As to the ignorant proposal by big-government politicians concerning the Rare Earth Supply-Chain Technology and Resources Transformation Act, the last thing we need is for the government to use yet another so-called crisis or "national security" issue to expand government in a useless manner as is now being attempted.

The markets should and will sort it out, as it has already began to do.

Rare Element Resources Ltd closed at $13.66, down $0.39, or 2.78 percent. General Moly closed at $5.24, falling $0.03, or 0.57 percent. China Armco Metals, Inc. ended the session at $2.32, gaining $0.24, or 11.53 percent. Titanium Metals closed the day at $18.75, rising $0.51, or 2.80 percent.

Avalon (AVL) (GMO) (REMX) (OSN) Close Up on Rare Earths Demand

Rare earths miners have been moving up quickly since the announcement by China it's going to cut back on exports significantly. Some have been pulling back after the recent surge, although companies and ETFs like General Moly (AMEX:GMO), Avalon Rare Metals (AMEX:AVL), Market Vectors Rare Earth/Strategic Metals ETF (NYSE:REMX) and Ossen Innovation Co., Ltd. (NYSE:OSN) closed up Wednesday.

Expectations are rare earth supply will remain tight for at least five years, even with the media hype of all the projects coming on line. Those will take years to go through the process before production begins.

According to Molycorp CEO, Mark Smith, there will probably be two coming on stream within that five-year period. At the same time rare earths demand is estimated to double annually.

That means those companies that already have operations online should enjoy significant pricing power during that time.

As to the foolish proposal by big-government politicians concerning the Rare Earth Supply-Chain Technology and Resources Transformation Act, the last thing we need is for the government to use yet another so-called crisis or "national security" issue to be used to expand government in a useless manner as is being attempted.

The markets should and will sort it out, as it has already began to do.

General Moly closed Wednesday at $5.27, gaining $0.18, or 3.54 percent. Avalon Rare Metals closed at $8.88, up $0.09, or 1.02 percent. Market Vectors Rare Earth/Strategic Metals ETF ended the day at $27.59, jumping $0.48, or 1.77 percent. Ossen Innovation Co., Ltd. closed at $3.32, rising $0.09, or 2.79 percent.

Rare Earths (REE) (MCP) (GMO) (AVL) Down on Large China Discovery

Rare earths companies outside of China, like Rare Element Res Ltd (AMEX:REE), Molycorp, Inc (NYSE:MCP), General Moly (AMEX:GMO) and Avalon Rare Metals (AMEX:AVL) are all trading down today on news of a huge rare earths discovery in China, which could end up boosting supply while pushing down prices.

Of particular not was a huge deposit of Scandium, one of 17 rare earths, and which is used in the building of a variety of high-tech products. Estimates are there are over 70 tons of scandium in the deposit.

Also part of the discovery was 130,000 tons of lead and zinc, 3,000 tons of cadmium, and 800 tons of silver. In addition, there were significant deposits of rhenium, stannum and gallium found.

This actually boosted share of Market Vectors Rare Earth/Strategic Metals ETF (NYSE:REMX), as well as Chinese rare earths companies like China Shen Zhou Mining & Resources, Inc. (AMEX:SHZ) and Qiao Xing Universal Resources (Nasdaq:XING).

Japan Crisis and (MCP)(REE)(SHZ)(XING)(AVL)(GMO) Rare Earths

Rare earths companies like China Shen Zhou Mining & Resources, Inc. (AMEX:SHZ), Rare Element Res Ltd (AMEX:REE), Qiao Xing Universal Resources, (Nasdaq:XING), Molycorp, Inc (NYSE:MCP), General Moly (AMEX:GMO) and Avalon Rare Metals (AMEX:AVL) could be affected in the near term from the crisis in Japan, as uncertainty as to manufacturing of products containing the elements will remain for at minimum days, and possibly weeks.

Market Vectors Rare Earth/Strategic Metals ETF (NYSE:REMX) could also take a temporary hit if it is determined there will be significant delays.

Western companies are scrambling to redevelop mines capable of producing the 17 rare earth elements, used in everything from Apple iPads to wind turbines, after China last year began sharply reducing its exports of the materials.

Business in parts of Japan is at a standstill as authorities cope with aftermath of the quake and people worry about the release of radiation from nuclear reactors at the quake-affected Fukushima Daiichi power station.

That has meant a pause in demand for rare earths at one of the world's largest users, the Asian Metal International Rare Earth Summit in Pittsburgh heard on Tuesday.

over the long term, there is no doubt prices of rare earths will continue to climb, as China has cut back on exports, and may themselves become an importer, even though they at this time produce about 97 percent of rare earths in the world.




Source

Molycorp (MCP) Pushing Hard at Mountain Pass

Molycorp Inc.'s (NYSE:MCP) Mountain Pass mine is the focus of feverish work as the company has the goal of increasing the amount of dirt dug on an annual basis from 3,000 tons now to close to 40,000 tons by 2014.

At stake is the rare earth elements, minerals that are used in a number of electronic and so-called clean energy products, including mobile phones, fuel cells and wind turbines.

At this time China produces about 97 percent of all rare earths, and they announced they're cutting back on exports, creating possible production problems in several industries for at least a couple of years.

Molycorp CEO Mark A. Smith recently said, “The use of these materials has really skyrocketed, with demand outstripping supply literally overnight. We've got some serious issues in this industry. It's going to be a tough year.”

Avalon Rare Metals (AMEX:AVL), Rare Element Resources (AMEX:REE) and General Moly (AMEX:GMO) are companies also working to bring rare earths to market.

Molycorp closed Friday at $49.26, down $0.57, or 1.14 percent.

Toyota (NYSE:TM) Developing Motor Not Dependent on Rare Earths

In response to the decision by China to cut back on rare earth exports, Toyota (NYSE:TM) has began to work on developing a motor which won't rely upon rare earths, casting a shadow over the long-term outlook for companies with significant rare earth exposure such as Molycorp (NYSE:MCP), Rare Element Resources (NYSE:REE), China Shen Zhou Mining (NYSE:SHZ), Qiao Xing Universal, (Nasdaq:XING), General Moly (AMEX:GMO) and Avalon Rare Metals (AMEX:AVL).

At this time Toyota said research is in the advanced stage, but as typical with the Japanese, are looking at it from a long-term point of view.

Called an inductive motor, it will have more efficiency than the magnet-type motors now in use, and will be lighter as well.

Toyota's all-electric RAV4 SUV is already scheduled to be released, and that vehicle will be supplied with an inductive motor developed by Tesla Motors (Nasdaq:TSLA). A different project than the first one mentioned, it won't require the use of rare earths in it either.

It would definitely be a disruptor in the rare earths sector if this becomes a major trend, which is definitely a possibility in light of China's lowering of export quotas.

Shen Zhou Mining (AMEX:SHZ), Rare Element (AMEX:REE), Qiao Xing, (Nasdaq:XING), Molycorp (NYSE:MCP), General Moly (AMEX:GMO), Avalon (AMEX:AVL) in the

After the explosion in stock prices of companies with large exposure to rare earths like China Shen Zhou Mining & Resources, Inc. (AMEX:SHZ), Rare Element (AMEX:REE), Qiao Xing Universal Resources, (Nasdaq:XING), Molycorp, Inc (NYSE:MCP), General Moly (AMEX:GMO) and Avalon Rare Metals (AMEX:AVL), they predictably have fallen back to earth in price, as the media focus has already shifted elsewhere.

Rare earths, while being extremely important, are far more difficult to mine economically than most other raw materials, as they are hard to find in concentrations, and the separation process also adds to them being difficult to mine profitably.

This isn't to say demand isn't there, as it is, but China at this time accounts for about 95 percent of the market, and while other companies are ramping up exploration and production on the news China has cut back on their export quotas by about 95 percent, it'll take a couple of years before the production side becomes meaningful, although some companies will be able to enlarge operations at existing projects.

With the high share price after the run-up, it's probably best to wait until they pull back to engage at a better entry point than to invest now, although it depend on the company one is interested in, as some have already dropped dramatically.

General Moly is trading at $6.36, down $0.15, or 2.30 percent, as of 11:48 AM EST. Molycorp was trading at $50.97, down $1.43, or 2.73 percent. Qiao Xing Universal Resources was at $2.83, down $0.07, or 2.41 percent. Rare Element was trading at $14.67, down $0.41, or 2.72 percent. China Shen Zhou Mining & Resources, Inc. was at $9.08, gaining $0.29, or 3.30 percent. Avalon Rare Metals was trading at $6.34, down $0.16, or 2.46 percent.