China's Dominance In The World’s Rare Earth Industry May Finally Come To An End
Post Date: 12 Sep 2012 Viewed: 343
China has long been at top position in the world’s Rare Earth Industry and controls about half of the world’s reserves and 95 percent of the supply across the globe. China’s monopoly of the rare earth market may at last be coming to an end as Lynas and Molycorp, Inc. (NYSE:MCP) have both released key statements in recent weeks concerning improved production.
Last week, Australia based miner Lynas gained a temporary operating license for their new rare earths project in Malaysia and plans to start production in the next month. The company anticipates it will be able to produce 22,000 metric tons of rare-earth materials once it reaches full capacity late next year. UBS analyst Ben Wilson said that the entrance of Lynas and Molycorp into production is expected to drive a worldwide surplus for most light rare-earth elements and they think it is likely prices will continue to weaken over the near term, with very limited engagement at present from buyers.
3 Hot Stocks with Unusual volume at Industrial Metals and Minerals Industry:
In the last trading session, Vale SA (ADR) (NYSE:VALE) dropped -1.39% and closed at $17.78 with the total traded volume of 42.12 million shares, more than the average volume of 18.88 million. Stock price 52 weeks high was $27.60 and 52 weeks low price was $15.77.
Yesterday, we received news that fired Vale worker Brian Miller received a payout. It was Vale’s third worker fired during the 2009-2010 period. According to sources, Miller is currently working at a gold mine and is happy with his job there.
Alpha Natural Resources is also one of the hot stocks of the Industrial goods metals and mineral industry. Alpha Natural Resources (NYSE:ANR) moved up +0.29% and closed at $6.92 with the total traded volume of 30.66 million shares in the last trading session, way above its average volume of 19.99 million shares. ANR is trading above the 50 day moving average and higher than the 200 day moving average.
Alpha Natural Resources dropped more than 25% in the last three months while in the last 5 days, ANR showed good recovery and surged almost 16.50%.
Arch Coal also showed unusual volume yesterday. Arch Coal Inc (NYSE:ACI) fell -0.15% with the closing price of $6.59. The overall volume in the last trading session was 16.27 million shares. Its fifty two week range was $5.16-$20.49. The total market capitalization remained $1.40 billion.
ACI is ahead of its 52 week low 28.45% and its last month price volatility remained 5.48%. Its beta coefficient was 1.79 with a target price of $9.69. The Company’s current year earnings per share declined -23.75% while the five year EPS growth rate was -16.26%.
U.S. based Arch Coal is a top five global coal producer and marketer, with 157 million tons of coal sold in 2011. Their core business is supplying cleaner-burning, low-sulfur thermal and metallurgical coal to power generators and steel manufacturers on five continents.