Lynas, rare earth stocks jump on China’s latest export curbs

Lynas Rare Earths Ltd (ASX:LYC ), Australia’s largest rare earth miner, saw its shares surge on Wednesday after China said it would begin banning the export of several rare minerals to the U.S.

China’s latest curbs focus on restricting exports of gallium and germanium compounds, critical materials used in electronics and defense. The restrictions were likely in retaliation for the U.S. imposing even stricter chipmaking export restrictions on Chinese firms, which Beijing lambasted.

Other rare earth stocks also rallied, reflecting optimism over the sector’s ability to capitalize on tightening global supply. Lynas (F:LYI ) Rare Earth jumped nearly 6%, while Iluka Resources Ltd (ASX:ILU ) another key Australian player, jumped nearly 4%.

The broader ASX rare earth sector also benefited, with smaller firms such as Arafura Resources Ltd (ASX:ARU ) and Alkane Resources Ltd (ASX:ALK ) recording gains of 3%, and 6%, respectively.

Hong Kong-listed China Rare Earth Holdings Ltd (HK:0769 ) climbed 4%, while miner MMG Ltd's (HK:1208 ) shares were 2% higher.

China's export curbs come as incoming U.S. President Donald Trump vowed to put hefty tariffs on goods from China, triggering risks of an escalated trade war between world's two biggest powers.

Source: Investing.com