Today's Hard|Forum Post
Today's Hard|Forum Post

Saturday October 22, 2011

Chinese Giant Halts Rare Earth Shipments to Hike Prices

China hasn’t been part of the World’s Capitalist Club for very long, but they learn very quickly. China controls the lion’s share of the world’s production of rare-earth and is starting to exploit that natural resource. Rare-earth prices rise causing electronics prices to rise. It’s a no brainer: The law of supply and demand at its finest.

In recent years China has deliberately increased rare earth prices. This has affected, for example, disk drive prices, although, very recently, rare earth prices have declined.