Molycorp(NYSE:MCP)are leading re ticking higher early amid new 2013 rare earth quotas set in China over the weekend.
China's Ministry of Land and Resources(MLR),announced that the first production quota for rare earths this year will be set at 46,900 tonnes.
Another quota will be announced later this year and the latest figure is broadly in line with recent output caps.According to Bloomberg last year's quota was not disclosed,but production totaled 93,800 tons in 2011.
China is responsible for more than 90%of the global supply of rare earths and a few years ago embarked on a crackdown on illegal rare earth mines and consolidation of the industry under a few large producers.
In December China also cut export quotas for rare earths by 27%to 15,501 tonnes compared to the 2012 figure.
The production and export quotas has not helped to put a floor under prices of the 17 elements used in a variety of industries including green technology,defence systems and consumer electronics,which have continued to fall from 2011's.
The MLR also set production for tungsten concentrate at 43,500 tonnes and antimony at 37,680 tonnes.
