Just last year, China's rare-earth exports plummeted 71% amid 'a raft of international trade suits', concerted global attempts to develop alternative rare-earth sources and a worldwide demand lull. But when comparing April this year with the same month in 2012, Chinese exports were six times higher at 2196 tonnes. This followed a 28% increase in March.

Analysts believe Japan is taking advantage of currently low prices - a view supported by data from the China Customs Statistics Information Center which indicates a direct correlation between the steady increase in export volumes since January, when only 1092 tonnes was exported, and the falling prices of processed rare-earth products. The average Chinese export price for a basket of rare earths was around US$ 42 350 per tonne in April this year compared to US$ 58 275 in January.

'More concentrated' metals

Companies in Japan and Europe are picking up more rare earths in response to a draw-down in their stockpiles, argues the China Association of Rare Earth Industry. However, Japan has been making efforts of late to reduce its dependency on China by locating its own rare-earth sources - and with some success as a team of Japanese researchers discovered large deposits in the seabed surrounding Minami-Tori-shima Island in the Pacific Ocean earlier this year.

The team believes the metals could be mined at quite a low cost and would generate materials up to 30 times more concentrated than those originating from China. Partly as a result of this, the 'Wall Street Journal' argues that China's rising exports could prove to be a 'temporary spike'.