EU and US could reach trade deal this weekend - Reuters
Investing.com-- Shares of major rare earth companies in Asia gained on Wednesday following China’s implementation of extensive export controls on five critical metals essential for defense, clean energy, and various other industries.
This move comes after a new 10% tariff on Chinese goods imposed by U.S. President Donald Trump.
In China, leading rare earth producers saw gains. China Northern Rare Earth Group High-Tech stock (SS:600111) jumped nearly 3%, while Xiamen Tungsten Co shares (SS:600549) rose 1.5%.
These companies are pivotal in the extraction and processing of rare earth elements, which are vital for products ranging from smartphones to advanced weaponry.
In Australia, Lynas (F:LYI) Rare Earths (ASX:LYC), one of the world’s largest rare earth miners outside China, saw its shares advance 3%.
Iluka Resources (ASX:ILU) stock jumped 3.5%, while Arafura Rare Earths (ASX:ARU) shares gained 2%
The export controls target minerals such as tungsten and indium, which are crucial for various high-tech applications. China’s dominance in the supply chain for these minerals, producing the majority of the global supply, means that these restrictions could have significant implications for global industries reliant on these materials.
Analysts suggest that these developments may lead to increased investment in rare earth mining and processing capabilities outside of China, as countries and companies seek to diversify their supply chains in response to geopolitical tensions and supply constraints.