Friday, July 27, 2012

rare earths and beryllium mining companies and China


China's control makes expensive rare metals

China has launched a global competition for raw materials. The People's Republic of rare materials sourced worldwide and ensures its presence in Africa. Of them is convinced that German industry and raises an alarm. Rare metals such as gallium, germanium, beryllium, indium, magnesium, and platinum are essential in the production of high-tech products. Indium is required for RFID chips, germanium for the processors in cell phones and fiber optic cable. Solar cells require silicon, and gallium, lithium is essential for the battery in mobile phones and electric cars. Automotive industry, plant builders and environmentalists Maschinenund depend on the rare metals. Analysts expect that demand will exceed supply for the rare earths in 2012 to more than 30,000 to 50,000 metric tons, unless new plants are added.

One reason for the scarcity of high-tech materials is China. The People's Republic has imposed some of the important raw materials for drastic restrictions on exports. Therefore, the European Union has complained to the support of the Americans before the WTO. The Asian country is in a key position. 95 percent of the global reduction of the rare earths will be held in China. In the People's Republic Baotou Steel Rare Earth Hi-Tech, the dominant company and also the world's largest producer of rare metals.



Indeed, China seems to be hoarding the commodities in order to build up strategic reserves. Promotion and export quotas in favor of making the domestic industry the market closely, which is reflected in rising prices. The Beijing government is considering to impose additional export duties of up to 25 percent. The message of the China Chemical Industry News According to the exports of rare earths in 2010 to 40 percent of the levels are reduced in 2009. The Ministry of Economy has recently published an export quota of 30 258 tons by the end of July, which are 19 887 tonnes less than in 2009. According to the report should go to 22 512 tonnes of domestic industries, while 7746 tons of foreign investment on China's control of rare metals makes them expensive. The Beijing government reduced the access of the Western industrial metals such as rare for gallium, germanium, beryllium and indium. Shortages and rising consumption provide for price increases.
Certificates allow an investment. Businesses should go. It's not so good to be achieved by additional revenue, but about development benefits of Chinese manufacturers.

Government sources have reported a few days ago that Baotou Steel Rare Earth Hi-Tech Corp. and Jiangxi Copper. set in the coming weeks an unspecified price mechanism on the rare earth elements in response to what China is to ultimately give a better position in the international market for valuable raw materials.

Investors have the opportunity to participate indirectly using certificates over the producers in the development of prices for the rare earths. From the Royal Bank of Scotland is a certificate on a basket with rare metals rhodium, ruthenium and iridium (DE000AA0R3X1). The basket combines both Canadian equities Uranium Participation Corp.. and Sprott Molybdenum Participation and the metals rhodium, ruthenium and iridium. In the past twelve months, the product grew thanks to the recovery in share prices of the producers with a value increase of 33 percent over the past six months, the increase is 10.6 percent. The certificate (DE000AA0XEK0) issued by the same rhodium, one of the rarest metals in the earth's crust brought, since August 2009, a gain of 14.5 percent. The paper currency hedging (DE000AA0XEJ2) came to a profit of 7 percent. Rhodium is used mainly in Katalysatorbau.

From the RBS is also an Open End Certificate on the Rare Metals Mining Total Return Index (DE000AA0RPC5). The index is calculated by Standard & Poor's and represents 15 companies in the field of promotion of rare metals. The index traded in dollars. The product came on a twelve month period, a gain of 34.2 percent over six months to an increase of 12.3 percent. The product with a currency hedge (DE000AA0RPD3) rose only 7.4 percent, because it could not benefit from the appreciation of the dollar.

The need for the lithium battery is represented by the product providers on the shares of lithium-sponsors. From UBS a certificate will be offered on a basket with lithium producers (DE000UB1LTH2). The basket contains the 15 largest companies in the lithium industry. The share of the four largest companies in the basket is limited to 15 percent. Among the heavyweights of Rockwood Holdings, Soc. Quimica Minera, FMC and Rio Tinto. The performance is in the past six months at minus 6 percent. Since March, there is also an ETF of Hauck & Aufhauser on the S-Box lithium index (LU0470205575). This index forms the performance of the 25 largest companies in the world, who are mainly active in the production of lithium. The investor had previously suffered a loss of 19.5 percent, however.

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