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Volatility rocked the stocks of rare earth companies in the wake of speculation overseas that China might restrict exports of materials vital to several high-end U.S. products, with shares in 30 stocks rising a combined average of 5.6% during Wednesday trading.
Fluctuations have become the norm for the 30 Chinese rare earth companies that make up the rare earth index, with stocks prices rising by 30% on average since May 7, according to data provider East Money.
China is the world’s biggest producer of rare earths, which are vital for many high-end products such as phone components, electric car batteries and cutting-edge military hardware. The U.S. is a major consumer of China’s supply, fueling speculation that Beijing might respond to escalating trade tensions by turning off the tap.
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