Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Holding Co, the nation's biggest rare earths producer, said on Thursday that short supplies of these valuable minerals represent an "irreversible" trend, a comment that could spark market speculation of further price rises.
China's top rare earth producer said on Sept 15 that the country is not intent to maintain its role as the world's major rare earth supplier, and the trend of tight supplies is irreversible.
Eastern Ganzhou city has ordered three rare earth mines to halt production by year-end, according to local mining authorities.
Villagers from East China's Fujian province have complained that profiteering still prompts unlawful miners to take risks by playing "hide-and-seek" with local law enforcement.
Soaring rare-earth prices are drawing increased attention from Chinese private investors, who are being forced to seek opportunities overseas because of tight limits on domestic mining.
Surging rare-earth prices will hinder the country's targets for energy conservation and emissions reduction as the increased cost of raw material has affected downstream producers.
Surging rare earth prices have attracted Chinese private enterprises to enter the field, but limited mining lease licenses forces them to seek opportunities abroad, China Business News reported.
Rare earth prices will remain bullish in the second half of this year, but won't be higher than the first half's level, as companies in downstream activities halt production due to expected high operating costs.
China's tight rare earth supplies will be an "irreversible trend" and prices will remain at high levels, a domestic entrepreneur said on Monday.
China has launched a five-month inspection campaign that aims to crack down on rare earth production that is not in line with government regulations, the country's industry ministry said on Monday.
Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co, the country's leading rare earth producer, said Monday that its half-year net profit jumped 458.51 percent from a year earlier.
The rare-earth processor China Minmetals Nonferrous Metals Co said it is planning to halt output to adhere to the country's mandatory production limit.
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