CRML, USAR, MP and Other Rare-Earth-Metals Stocks Fall 10%+ Intraday
Critical Metals, Energy Fuels Inc. and other rare-earth stocks sank more than 10% intraday Thursday on a combination of a broad Wall Street sell-off and a report that the Trump administration won't guarantee minimum prices for rare-earth metals.
$Critical Metals (CRML.US)$ led the way downward, sinking as much as 18.5% intraday.
Other rare-earth metals firms to fall included $Energy Fuels (UUUU.US)$ (down as much as 17%), $USA Rare Earth (USAR.US)$ (16.5% softer at its session low) and $MP Materials (MP.US)$ (which lost as much as 13%).
The stocks fell after Reuters quoted unnamed sources as saying U.S. President Donald Trump's administration is backing away from guaranteeing rare-earth companies other than MP Materials a set minimum price for their products.
Reuters said the administration – which has made developing non-Chinese rare-earth metals a priority given their importance to electric cars and other high-tech devices – no longer plans to offer such promises.
The news service said U.S. officials do plan to stick to a minimum-price guarantee previously given to MP, which the government has taken a 10% stake in.
However, Reuters said the White House is backing off of word given to the industry last summer that MP's price guarantee wouldn't be a "one-off."
That said, the news agency quoted unnamed sources as saying the administration might still use tariffs to set U.S. price floors on some rare earths, which could serve as de facto minimum-price guarantees.
Reuters also said the U.S. Energy Department later issued a statement calling its article “false and relies on unnamed sources that are either misinformed or deliberately misleading.”
However, the news agency said the department didn't say which parts of the story the government considers false.
The Reuters report came on a day when volatile assets like rare-earth companies had been at risk of falling anyway as part of a broad market sell-off.
The $Dow Jones Industrial Average (.DJI.US)$, $S&P 500 Index (.SPX.US)$ and $Nasdaq Composite Index (.IXIC.US)$ were all trading lower Thursday afternoon in part on poorly received earnings and forward guidance from $Microsoft (MSFT.US)$, which sank more than 10% intraday.
Rare-earth stocks had been soaring in recent months on Trump's move to boost the U.S. industry as a counterweight to Chinese rare-earth firms, which currently provide much of the global supply.
For instance, USA Rare Earth rose nearly 700% in the less than seven months between hitting a $5.56 all-time low on March 27 and a $43.98 all-time high on Oct. 13.
Trump's initiative has included the U.S. government taking equity stakes in $Lithium Americas (LAC.US)$, $Trilogy Metals (TMQ.US)$ and $USA Rare Earth (USAR.US)$.
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Jerry Kronenberg
Director of Financial Content
Former top editor at Seeking Alpha, Fidelity.com, TheStreet.com and UPI.
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goatmaster721 : 5 dollars
The Braveone : that's a wish/that will never come true.......
9521 : Slapping one's own face
Joey Hall508 The Braveone : There's no doubt that these companies would be fine without the government's help. I listen to the CEO's interview the day after the initial report of the government's investment that was proposed by Howard Lutnick. He called her and proposed the government's investment and of course anyone would take it even when they don't need it. And Of course we know that the other investment was tied to Saudi Arabia or one of those countries as partners with the US government on that project. Most of the people on this site are young and trying to learn and I don't know what they think when something like this happens. I've been trading for 40 years but I have never seen a time when one person constantly disrupts a group of stocks like he constantly does. IT completely affects the new investors and the wealthy investors could care less. I'm a swing trader that only keeps a stock when it shows strength. I bought 2 rare earth stock for the same reason everyone did. Trump, existing companies with a product that sells itself. I look up everything about the companies. I put in the work but news that comes out at 5:45 I can't control. I recommend that you find a larger firm that can save your ass because most stock are not very liquid after hours and most of the time the company your working with just buys it themselves, for a fee but of course we are talking about large or consistent traders. There are very few on this site. I personally have monitors that run 24 hours a day including weekends. This is my job. I know that all of these stocks will go up with progress, not Trump. It really bothers me when small traders get caught up in a stock for no reason because one person Stupid comment. Good luck to all of you. At least you're trying.
DeweiLin8 : Who the hell spread the rumor that the White House is giving up mineral resources and not providing a safety net for MP? The Department of Energy just refuted that claim today.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
101628797kammalranM : gold spiking day by day but here plummeting
Slay2dudes : ok
105165983 DeweiLin8 : I've been deceived before and suffered significant losses due to false information. Now, I only trust myself.
Joey Hall508 DeweiLin8 : They said they wouldn't guarantee the base price like they said they would. I read it in the news comments. look
Joey Hall508 DeweiLin8 : Trump said he would guarantee the base price. Dumb statement. why would anyone do that anyway. It's called rare earth for a reason. Trump and his team talked too much. None of the companies ask for help in the first place. They were surprised when the call came in. It would help if he said nothing but he does it all the time as you know.
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