“China is likely to do away with the rare earth export quota after the WTO dispute with trading partners,” Lin Jian, a mining analyst at Zheshang Securities Co., said, Bloomberg reports. “This won’t have much impact on the global market because the supply exceeds demand in this economy and China hasn’t been using up its export quota.”
Moreover, rare earth prices could be supported through an increase in so-called resource taxes.
REMX tracks miners, refiners, recyclers and producers of rare earth/strategic metals. Chinese companies make up 18.2% of the ETF’s overall portfolio, along with the U.S. 18.3%, Australia 12.3%, Japan 10.3% and Canada 9.3%.
Market Vectors Rare Earth/Strategic Metals ETF
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Max Chen contributed to this article.