Global rare earth supply deficit should change into a surplus by 2013, Goldman Sachs says

It feels like rare earth elements are becoming slightly less rare. In step with a research note released by Goldman Sachs today, the world’s rare earth supply deficit will probably reach its apex this year, before converting right into a surplus by 2013. Goldman’s analysts constructed their projections in keeping with evidence that many Western companies have begun building their very own mines, in accordance with China’s overwhelming market dominance. Today, the People’s Republic produces about 90-percent of the world’s rare earth minerals — a bunch of 17 elements which are used to fabricate most of the flat screen TVs, hybrids and cellphones we’ve come to understand and love. Over the process the past few years, China has only consolidated its hold at the industry, due to economic policies aimed toward nationalizing private mines and implementing restrictive export quotas . Accordingly, global rare earth prices have skyrocketed, forcing mining companies within the US and elsewhere to look inward and harvest their very own deposits. The simplest downside, however, is that despite the fact that global supply spills right into a surplus in the next two years, prices probably won’t quiet down until 2015. But not less than the horizon looks brighter than it has in recent months.

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This post is tagged: economic policies, market dominance, mining companies, rare earth elements, rare earth minerals