Shares of Critical Metals Corporation (CRML) tumbled 6.79% in pre-market trading on Monday, as investors reacted to news of potential trade developments between the United States and China that could impact the rare earth metals sector.
The decline in CRML's stock price comes amid a broader selloff in rare earth stocks, with several companies in the sector experiencing significant drops. The downturn appears to be triggered by reports of progress in US-China trade talks, which could lead to a pause in escalating tariffs and a potential delay in China's implementation of rare earth export controls.
According to U.S. Treasury Secretary Scott Bessent, discussions on the sidelines of the ASEAN Summit have resulted in a framework that could prevent the imposition of 100% tariffs on Chinese imports. Moreover, Bessent indicated that China might postpone its rare earth minerals and magnets licensing regime by a year. This development has sparked concerns among investors about the future pricing power and market dynamics of rare earth companies like Critical Metals Corporation.
The pre-market plunge of CRML reflects the uncertainty surrounding the rare earth metals market as traders reassess the sector's outlook in light of these potential trade developments. With the United States also signing deals on critical minerals with Southeast Asian partners to diversify supply chains, the competitive landscape for companies like Critical Metals Corporation may be shifting, contributing to the downward pressure on its stock price.
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