China becomes world’s biggest importer of rare earths – analysts

Hope for the beleaguered iron ore sector has come in the form of higher prices and signs that steel demand is picking up in China, Reuters reports.

The U.S., Japan and the European Union have filed an official complaint at the World Trade Organization this morning, urging the body to take actions against China’s restrictions on these metals. President Obama warned China that it would not be allowed to gain a competitive advantage in world trade by "skirting the rules."

MarketWatch quotes  Nomura economist Zhiwei Zhang as saying:  "Overall, economic conditions are getting weaker at a fast pace. The slowdown is happening faster than the government expected."

Molycorp's mould-breaking deal with Neo Material Technologies sent its shares rocketing in New York on Friday and some industry observers say the tie-up creates a vertically integrated company that will transform the industry. Others see REE prices continuing to drop with some already down 70% and China's grip on the market undiminished – exports could double this year and domestic production continues to ramp up.

Molycorp and Neo Material Technologies Thursday announced the signing of a definitive agreement under which Molycorp will acquire Neo Materials for approximately CDN $1.3 billion. This will create one of the most technologically advanced, vertically integrated rare earth companies in the world.

China, the world’s largest supplier of rare earth, may almost double exports this year, meeting quotas set by the government as lower prices continue to stimulate demand.

Brazilian mining giant Vale (NYSE: VALE) has contacted China's second largest container line China Shipping Group to negotiate a way for its very large ore carriers (VLOCs) to dock in Chinese ports again

The mining sector's bellwether companies were all beaten down on Monday after China's premier Wen Jiabao delivered a downbeat outlook for the world's second largest economy adding that there were "new problems" to deal with.

Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose to their highest in nearly a decade, data showed yesterday, suggesting oversupply in top copper consumer China where demand has been slower than expected.