Australian rare earth companies surge amid US-China tariffs

ABC NEWS (Australia)

The ASX declined amid broad selling, though gold producers and rare-earth miners saw strong demand. Lynas Rare Earths, Australian Strategic Minerals, and Arafura Rare Earths saw gains after China announced restrictions in exports and Donald Trump's latest tariffs-on-China announcement. Meanwhile, Bitcoin had a rough weekend, and oil prices dropped below $60 per barrel.

Transcript

00:00There were some fears of a minor bloodbath today after the US market fell heavily on

00:05Friday when Donald Trump did a Truth Social post threatening China with a massive extra

00:10tariff because it's going to clamp down on rare earth exports, which America and the

00:15rest of the world need for magnets and semiconductors, and which China has carefully cornered the

00:20market in.

00:21But as the Black Knight in Monty Python would say, tis but a scratch, less than 1%.

00:27There was some selling of most miners and banks, but buying of ANZ after the new CEO detailed

00:31his revolution to analysts.

00:34And a whole lot of buying of Australia's intrepid band of rare earths companies trying to break

00:39China's stranglehold.

00:41Linus Rare Earths, Australian Strategic Minerals, Northern Minerals and Arafura Rare Earths.

00:46Also ASX listed Sun Silver, which has found some silver in the Nevada desert, announced

00:52that Australian Ambassador to the US, Kevin Rudd, had asked him for a briefing about the

00:57discovery ahead of the Prime Minister's meeting with Mr Trump.

01:00Very exciting.

01:02Back to the tariffs, here's a simplified graph of America's tariff regime at the moment,

01:07with China getting slugged four times the average of the rest of the world.

01:11Or rather, American buyers of Chinese products are getting slugged, of course.

01:14Now add another 100% to that, and trade with China would screech to a halt.

01:20Bitcoin had a bad weekend, and the oil price fell to below $60 a barrel.

01:25Only the second time it's done that since early 2021.

01:29Here's a chart of global crude oil in transit, that is in tankers on the ocean.

01:34It's even more than in 2020, when Saudi Arabia flooded the market during their price war with

01:40Russia.

01:41Finally, the Aussie dollar has bounced back above 65 US cents.

01:45And that's finance.

01:47reBRIONA which is, as a national market, is moving, would be critical to the current

01:48instrument service resistance, and overall burden to increase its Aviation that is

01:57much more than in, in a state level of NASA.

02:01The United Statesyear the general cobalt has a ticket to $ sarees of $eries in the US,

02:04which has about $25 billion to cover 15 dollars in this year.

02:07At least of the epidemiollarnak has improved besteration on the documentation,

02:11clements Ungovic and Australia .

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