Rare Earth Prices Have Exploded over the Last Three Weeks

FT reports:

Prices of some rare earth metals have doubled in just three weeks amid heavy stockpiling in China that has raised fears over global supplies.

China produces more than 90 per cent of the world’s rare earths, 17 elements used in hybrid cars, fluorescent lights and many high-tech applications.

A recent crackdown by Beijing on rare earth mines and restrictions on exports have caused chaos in some of these markets.

Check out these price increases since May 23.

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There are two things going on here. First, continued weakness in the dollar. Second, the Chinese waking up to the fact that they control the supply of some very valuable metals.