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China’s Crackdown on Illegal Mining and Supply to Result in Long Term Shortage of Tech Metal Minerals
As the world’s largest producer of tech metals, China provides more than 90% of global supplies. The consolidation in the Chinese tech metals industry, coupled with a state-sanctioned crackdown on illegal mines in the country, is expected to result in a further increase in tech metal shortage in the near future.
China’s eight government authorities with Ministry of Industry and Information Technology (MIIT) and Ministry of Land and Resources involved, have jointly launched a special campaign at the end of last year to crack down illegal mining, trading and production of technology metals.
Technology metals are only a tiny market, but they are critical to ensure the sustainable development of high-tech industries and international defense engineering. Tech metals have broad applications across a number of industries, and tech metal producers are considered important components of the global economy.
The technology metals prices globally are expected to rise again amid expectations that impending stricter environmental rules will again limit the supply. Therefore, investing in technology metals will be a good play for wise investors as demand for tech metals remain high and supply remains restricted due to China’s plans to improve technology metal pricing.
“The tech metal prices should gradually upsurge in the long term, as a result of limited supply for technology metals as well as China’s government consolidation and integration on tech metal resources”, forecasts Galaxy Magnets, the biggest manufacturer of bonded NdFeB magnets in the world.
China will seriously crack down on illegal sewage; illegal companies will be blacklisted and also be published. Market sources believe that the move means that the crackdown on illegal mining and supply in China will be further strengthened which is favorable for the market regulation and higher tech metal prices.
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