Molycorp.Inc. (fka MCPIQ)

[docrew0]

Inner Mongolia Baotou Steel Rare-Earth (Group) reports 11/27/2013

http://quotes.wsj.com/CN/XSHG/600111/financials

They report in a couple of days. If you've been following the Chinese Rare Earth miners they haven't been doing so well overall and hence the consolidation by the state to save the industry and raise prices. Manipulation for sure, oversupply certainly but now the state will control production volumes and have a hand in the spot price exchanges. Not really the best developing situation for lower cost base materials for manufactures. Already over the past 12 months we've seen temporary mine closures in an attempt to limit supply. It's happening and their efforts have lifted prices since June.

In the background companies have been working down inventory stockpiles from 2011. Now many companies have reached the end of those stockpiles as we heard from the Moly Zibo processing plant and have begun buying again. We are just seeing the return of many of those buyers who have been buying the minimum or on the side lines waiting to see how the WTO rulings play out.

As long as we don't see a world wide meltdown and companies continue to report quarter over quarter profits the demand will continue to rise. Good luck