Ferro-alloys.com：According to the Russian satellite news agency, Argus analytical agency (Argus analytical agency) said that Myanmar's military coup has triggered concerns about a reduction in the supply of rare earth metals and stimulated the surge in the stock prices of most listed rare earth companies in China.

The armed forces seized the Burmese power on the grounds of cheating in the election last year and imposed a one-year state of emergency.

Myanmar is China’s main supplier of rare earth ore. China is heavily dependent on imported rare earth ore from Myanmar, which accounts for more than 60% of the country’s total rare earth consumption.

The shares of Shanghai Shenghe Resources Holdings are up 10%, rising to 19.04 yuan per share. Minmetals Rare Earth shares rose 5.1% to 20.04 yuan per share.

According to data from the Institute of Rare Minerals and Metals, the price of lanthanum oxide from China in December was US$3,566 per metric ton, and the price in August 2019 was US$1810.

This surge indicates strong potential demand in the industrial sector. Analysts said the incident in Myanmar further contributed to panic.

Investors are optimistic about the long-term prospects of the rare earth metal market. It is expected that the shortage of raw materials in Myanmar will reduce the output of rare earth products and support domestic prices.

Restricting Myanmar's export of rare earth mines has also boosted the stock prices of major processing companies, including manufacturers of permanent magnets and electric motors.

According to the US Geological Survey, Myanmar produced 30,000 tons of rare earth metal oxides, equivalent to 12.5% ??of global production in 2020. China’s share of this market is 66.7%, while the United States accounts for 15.8%.

• [Editor:zhaozihao]