Rare Earth Stocks Firming After Correction

NEW YORK ( TheStreet) -- Following a brief correction the day before, strategic, rare earth stocks have largely been trading higher as the broader equities dip in the red amid mixed U.S. jobs reports.

Shares of the recently created Market Vectors Rare Earth Strategic Metals ETF ( REMX) have inched up 0.9% to $23.30.

Rare earth stocks outside China have been heating up since Dec. 29, around the time when China said it would slash rare earth exports by 35% in the first half of 2011 vs. the same time last year.

China generates about 97% of the world's rare earth minerals supply.

Shares of Avalon Rare Metals ( AVL) have fallen 0.6% to $6.36 as it is lowered to hold from buy by Laurentian Bank. Earlier, it was popping by 2.3% to $6.55, even as the broad equities lagged.

Molycorp ( MCP) is up 0.7% to $53.21. RealMoney contributor and Shark Asset Management CEO Rev Shark recently said in a RealMoney article of his that the stock has been leading the pack of rare-earth plays that have attracted aggressive traders.

Rare Element Resources ( REE) has risen 4.6% to $14.47 as it continues to benefit from news on China's restrictions on rare-earth exports and rising demand for such minerals in the country. General Moly ( GMO), another junior miner who has benefited from the growing interest in rare-earth mineral plays, has risen 4% to $6.21.
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-- Written by Andrea Tse in New York.

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