The uncommon earth elements are metals of large importance to many industries. China has utilized its quasi-monopoly as a lever towards Western economies. Chinese export restrictions further increased the prices of uncommon earth elements on the planet marketplace in the 3rd quarter. This is 17 metals, on which industries depend on the automotive manufacture for reinforcement. Their dollar prices increased by 8.2% compared to the erstwhile quarter. This data was calculated by the Bavarian manufacture Association (vbw) in the latest edition of the monthly index of natural material prices. This is simply a continuation of the trend from erstwhile months; according to vbw, the prices of uncommon earth elements have already increased by 8.9% in the second quarter.
"We must urgently reduce our dependence, especially on China," said the managing manager of vbw, Bertram Brossardt. Although Chinese authorities suspended export control after gathering president Xi Jinping with U.S. president Donald Trump, the agreement in the trade dispute was inactive not reached.
Elements of uncommon earth: German manufacture suffers
In spring, Beijing initially introduced export control for 7 uncommon earth elements in retaliation for the duties threatening Trump; this control was further tightened in October. Rare earth elements are essential for the production of electronic components and magnets in the electronics, automotive and reinforcement industries.
According to various estimates, the People's Republic of China produces almost 2 thirds of the world's uncommon earth resources and converts 90 percent into industrial needs. due to the fact that these metals are besides crucial to the Western the arms industryboth the US and the EU want to reduce their dependence on China. However, many experts believe that this may take years.
How much is Germany dependent on China?
According to the price index of VBW natural materials, in the 3rd quarter, not only uncommon earth metals, but besides precious metals specified as gold, silver and platinum, whose prices increased by 12.6%. "This shows the current uncertainty," Brossardt said. "Investors are increasingly seeking seemingly safe investments specified as gold".
