This year in rare earths has been a game of two halves, to use a well-worn football cliché.
The first half was characterised by surging prices and supply shortages as China tightened its grip on rare earth producers.
Prices came to a peak in July and August but then gradually softened through to the end of the year, as demand for rare earths outside of China dwindled.
The trend between January and the start of the third quarter can be put down to a combination of factors largely controlled by the Chinese government.
Three days before the start of 2011, China’s Ministry of Commerce (MOFCOM) announced that it had reduced its first half export quotas by 35% year on year.
At the same time, the government continued...