Molycorp Soaring Again (MCP)

Shares of rare earth oxide producer Molycorp MCP are surging again during Wednesday's trading session. This is one of the hottest stocks in the world right now, as investors react to Chinese supply concerns in the rare earth minerals space. China controls more than 90% of the global rare earths trade and indications are that they will begin significantly cutting back on their exports. Molycorp CEO Mark Smith told a conference recently that "I don't believe that China is going to completely embargo the United States and the European Union as relates to rare earths. I do believe, however, that we're going to see reductions in the export quotas coming out of China." Smith told Reuters that, with China withdrawing some supplies, Molycorp plans to fill the void and become the world's low-cost producer. "Our prices should be about 50 percent of what the Chinese are producing at today." The catalyst for the Chinese export reductions is domestic demand for rare earth minerals. Shares of Molycorp have climbed more than 280% since the company's July IPO. During Wednesday's trading session, MCP has surged 8.30% to $38.10 on heavy volume.