Market Chatter: Molycorp Gains Nearly 5% On Reports that China Will Restrict Rare Earth Exports
Molycorp ( MCP ) is up nearly 5% after reports that the Chinese government has barred Baotou Steel, its state-owned rare earth minerals enterprise in Baotou, Inner Mongolia, and the largest prodcer of minerals in the world, from exporting its products.
The Chinese Ministry of Commerce did not include Baotou Steel in its list of approved exporters for 2012, according to reports.
The export ban could potentially affect global supply for rare earth minerals, since Baotou Steel accounts for about half the world's rare earth production. But the restriction could benefit non-Chinese producers such as Molycorp.
Shares are up $1.25 to $27.68, with a 52-week range of $25.60 - $79.16.
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