Unrest in the Middle East, the European debt crisis and the rising global economy will put pressure on commodity prices. Rare earth stocks, vanadium miners and related Chinese miners have been in a correction since their run up late last year. Molycorp (MCP) fell from $62 to $45 earlier this month and is now at $53. Rare Earth Recourses (REE) fell from $16 to $12 and is now at $14.50. Qiao Xing Universal Resources (XING) fell from $3.50 to $2.50 and is now at $2.70. China GengSheng Minerals (CHGS) fell from $5 to $2.70 and $3.47. And China Shen Zhou Mining & Resources (SHZ) fell from $10 to $6 and is now $6.50.
Demand is real. The hoopla started with the news that China is going to limit export of vanadium and rare earth metals. For rare earths, one of their key applications is in military missiles and defense systems. The idea that the government will cut back on missiles and defense systems just because the minerals cost too much is nonsense. http://www.vanadiumsite.com