China’s biggest producer of rare earths suspended production at its processing plants for one month. Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-Tech Co, said the move is aimed at warding off a plunge in prices and stabilizing the market. During the suspension period, the company will stop supplying raw materials to its smelting and separation plants and to partners of those companies. “It’s the right decision to absorb inventory overstock after a rapid decline in demand over recent months caused by skyrocketing prices, some having risen fourfold this year,” said Liu Minda, Analyst at Huatai Securities Co. Figures compiled by Shanghai Metals Market show that the average prices of rare-earth oxides declined by more than 20% during the three months ending October 17. “Processing plants have to cut production to keep prices from falling,” said Wei Chishan, Researcher at Shanghai Metals Market. China set a production ceiling of 93,000 tons of rare earth elements for this year. The central government’s total export quota for this year is 30,194 tons, slightly lower than 2010’s 30,258 tons, the China Daily reports.