The exchange-traded fund (ETF) that is benchmarked against the prices of rare earth metals declined on Wednesday, ETF Trends reports. The Market Vectors Rare Earth/Strategic Metals ETF dropped as Molycorp shares fell more than 20 percent on news of a downgrade amid declining demand for rare earth metals. JP Morgan Chase & Co. downgraded its outlook on Molycorp to neutral from overweight and lowered its 2012 year-end price projection owing to a “lack of clarity” on the effects of speculative purchases on rare earth prices. The Industrial Mineral Co. of Australia also lowered its estimate on rare earth demand.
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