Investing News Network (INN) reached out to David Anonychuk, Managing Director of M.Plan, to provide comments for their January 16, 2020 article “US to Sell Rare Earths to China Under Trade Deal”. China has agreed to increase their imports of scandium and yttrium from the US over two years — the problem being that the US is not currently producing these elements.
When asked about the news that scandium and yttrium are listed among goods that will see increased exports to China, David responded that it will “probably raise some eyebrows” and make investors rethink positioning in rare earths in general. “Whether it contributes to something in reality, in actual trade flow, is a different matter,” he said, adding that today the largest consumers of scandium are US based. “If you think about the future and where scandium is expected to grow the most, it’s going to be in the transportation sector. Transportation is the key, and if we think of electric vehicles and where it’s going … it’s predominantly China and Asia based,” referring to a future where China will be an importer rather than an exporter.
“Ignoring the short-term news, just thinking about the future, China really is the story of where things like scandium would benefit from on an import nature … the dynamic will shift. Maybe this story is stepping out a bit and seeing the bigger picture, as to the hidden drivers, even though in a practical sense no one (in the US) is going to rush out to supply China.”
To read the full INN article online, please click here.