Top Highlights

• “The new measures could be aimed at tackling the rare earths surplus in China,” Gwen Yang, analyst at Shanghai Metals Market, said by phone. “The new regulation could reduce China’s supply of rare earths oxides by about 20%, and that should provide support to domestic prices.”
• Analysts highlighted one aspect of the new regulations that could put pressure on Chinese output: refineries may no longer be able to use imported ores in order to produce above their government-set production quotas, they said. Imports — mostly from neighboring Myanmar — now provide about a quarter of China’s rare earths raw materials.

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