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.

Molycorp (MCP) (SHZ) (AVL) (REE) (XING) Close Down on Tough Trading Day

Rare earths miners have been soaring since the announcement by China it's going to cut back on exports significantly. but that wasn't the case Tuesday, as the major rare earths miners pulled back with China Shen Zhou Mining & Resources, Inc. (AMEX:SHZ), Avalon Rare Metals (AMEX:AVL), Rare Element Resources Ltd (AMEX:REE), Qiao Xing Universal Resources, (Nasdaq:XING) and Molycorp, Inc (NYSE:MCP) closing down on the day.

Most think that the 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 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 period of time.

But it appears it'll be a somewhat volatile rare earths ride until there's much clearer economic clarity for the sector. It appears bullish long term at this time.

Market Vectors Rare Earth/Strategic Metals ETF (NYSE:REMX) closed down on Tuesday as well, closing at $27.80, falling $0.20, or 0.71 percent.

Molycorp (MCP) (XING) (REMX) (OSN) 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 Qiao Xing Universal Resources, (Nasdaq:XING), Molycorp, Inc (NYSE:MCP), Market Vectors Rare Earth/Strategic Metals ETF (NYSE:REMX) and Ossen Innovation Co., Ltd. (NYSE:OSN) 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.

Ossen Innovation Co., Ltd. closed at $3.38, gaining $0.06, or 1.81 percent. Market Vectors Rare Earth/Strategic Metals ETF closed at $27.75, up $0.16, or 0.58 percent. Molycorp, Inc. ended the session at $68.24, falling $3.23, or 4.52 percent. Qiao Xing Universal Resources closed the day at $2.05, rising $0.02, or 0.99 percent.

Molycorp (MCP) (SHZ) (REE) (XING) Close Mixed as Rare Earths Take Breather

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, as companies 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 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.

Molycorp, Inc. closed Wednesday at $71.47, falling $2.49, or 3.37 percent. Qiao Xing Universal Resources closed at $2.03, down $0.02, or 0.98 percent. Rare Element Resources Ltd ended the day at $14.05, dropping $0.07, or 0.50 percent. China Shen Zhou Mining & Resources, Inc. closed at $4.72, rising $0.12, or 2.61 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).

China Taxing Rare Earth (SHZ) (XING) Minerals

The cost of producing rare earths in China will go up on April 1, as according to the Ministry of Finance and the State Administration of Taxation, cited by Xinhua, they are going to start taxing the minerals.

Xinhua said the tax start off at $9.1 a ton for light rare earths and about $4.55 a ton for medium and heavy rare earths.

Since China announced it was cutting back on rare earth exports, prices have soared from $14,405 a ton to $109,036 a ton.

Public Chinese companies specifically affected by this include Qiao Xing Universal Resources, Inc. (Nasdaq: XING) and China Shen Zhou Mining & Resources, Inc. (AMEX: SHZ).

Publicly traded rare earth competitors outside of China are Molycorp Inc. (NYSE: MCP), Rare Element Resources (AMEX: REE), and Avalon Rare Metals (AMEX: AVL).

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.




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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.

Qiao Xing (Nasdaq:XING), Shen Zhou (AMEX:SHZ) Soar as Chinese Rare Earth Sector Continues its Run

The announcement by China recently that they would cut back on rare earth exports by 35 percent caused a huge disruption in the sector around the world, but also in their domestic rare earth sector as well, especially with Qiao Xing Universal Resources and China Shen Zhou Mining & Resources, which has soared since then.

Avalon Rare Metals (AMEX:AVL) and Molycorp (NYSE:MCP) were among the major beneficiaries of the decision outside China, as their shares have exploded since then as well, although it appears Molycorp is starting to come back to earth a little.

Quia Xing is soaring again today, on news they're going to acquire a 34.5% equity interest in a Chinese copper-molybdenum mining company for $27.9 million.

Quia Xing Universal Resources was trading at $3.62, gaining $0.66, or 22.30 percent, as of 1:18 PM EST. China Shen Zhou Mining & Resources, Inc. was trading at $10.05, up $0.25, or 2.55 percent. Avalon Rare Metals was at $7.39, up $0.09, or 1.23 percent. Molycorp was trading at $60.87, down $0.93, or 1.50 percent.

Molycorp (NYSE:MCP), Avalon (AMEX:AVL), Qiao Xing Universal (Nasdaq:XING), China Shen Zhou (AMEX:SHZ), Rare Element Resources (AMEX:REE) Soar on Rare

The rally in rare earths continue, and companies like Molycorp (NYSE:MCP), Avalon Rare Metals (AMEX:AVL), Qiao Xing Universal (Nasdaq:XING), China Shen Zhou Mining & Resources, Inc. (AMEX: SHZ) and Rare Element Resources (AMEX:REE) all soared in early trading, although some have now pulled back.

Every time a bit of positive news concerning the rare earths sector is released, it pushes the prices of the main players in the industry up in an inordinate move, which is of course good for traders.

This time it was the announcement by sector leader Molycorp's CEO Mark Smith, who said the company may double its production to meet the demand created when China decided to cut back on its rare earth export quotas.

Smith said, "We will be making some presentations in the first quarter to our board of directors on the economics involved of doubling production.”

Molycorp was trading at $59.96, gaining $2.46, or 4.28 percent, as of 11:37 AM EST. After pushing up on the news, Avalon Rare Metals got hammered, and is trading at $7.53, down $0.30, or 3.83 percent. This is probably because they were expected to possibly increase production to meet the growing demand. Qiao Xing Universal was trading at $2.98, up $0.17, or 6.05 percent. China Shen Zhou is at $10.28, up $1.98, or 23.86 percent. Rare Element Resources was also down to $16.82, falling 0.34, or 1.98 percent. They are down for the same reason Avalon is.

Molycorp (NYSE:MCP), Rare Element Resources (AMEX:REE), China Shen Zhou Mining (AMEX:SHZ), Avalon Rare Metals (AMEX:AVL) Continue to Ride Rare Earth Speculative Frenzy

Molycorp (NYSE:MCP), Rare Element Resources (AMEX:REE), China Shen Zhou Mining & Resources (AMEX:SHZ) and Avalon Rare Metals (AMEX:AVL) share prices have been soaring, and options traders have been feeding on the companies as well.

And apparently some have even grouped in Qiao Xing Universal Resources (Nasdaq:XING) with the rest, having a tenuous connection, at best, to rare earths, as their primary metals are molybdenum and copper.

Rare Element Resources had 18,000 calls and 9,150 puts traded on them Wednesday.

Qiao Xing Universal Resources attracted about 8,000 calls and 300 puts. January and June calls were the most actives, with over 3,000 traded in each and three quarters trading at the ask.

All of this started when China released a statement saying they were going to cut rare earth quotas by 35 percent, causing the feeding frenzy to begin.

Fear and emotion is driving all this, but the reality is the sector seems to be ready to supply the majority of the demand going forward, and in a couple of years supply could outpace demand, even with China's move.

But riding emotion is the name of the game for speculators and traders, and they're making a killing, whether or not the fears and worries are based on reality.

Avalon Rare Metals closed Wednesday at $6.54, up $0.11, or 1.71 percent. Qiao Xing Universal Resources soared to $2.71, gaining $0.86, or 46.49 percent. Rare Element Resources ended the session at $14.79, up $1.85, or 14.30 percent. China Shen Zhou Mining & Resources exploded to $9.29, up $3.79, or 68.91 percent. Molycorp closed at $49.30, up $3.12, or 6.76 percent.