Rare earth industry brewing a new round of "cut price"

Reporter July 2 from the National learned several rare earth enterprises, faced with rare earth market downturn this year, the grim situation, the domestic rare earth industry is brewing a new round of "cut-price", and as China's largest rare earth production companies Baotou Steel Rare Earth, has taken the lead from July 1 onwards will belong to rare earth processing plant shut down for six months.

According to general manager Zhang introduced the Baotou Rare Earth, Baotou Steel Rare Earth by the 29 points (sub) companies, covering almost all the rare earth industry chain downstream products. The rare earth plant shutdown is in line with Baotou Steel Group Corporation oxide ore beneficiation migrated to the Bayan Obo mine overall implementation of the project, the company smelting and separation of rare earth functional materials such as downstream industries can use the company in recent years the reserves of rare earth concentrates normal production, will not affect the company's downstream business development, does not affect the company's annual performance goals.

Baotou Steel Rare Earth for the first time this year shut down problem, Inner Mongolia University of Technology Dean Professor Zhang Yin earth analysis that, in fact, since the second quarter, most of the small and medium rare earth enterprises began to stop production or semi-production, mainly due to continuous market price of rare earth decline, rare earth enterprises large losses. Although since June, the severity of rare earth oxide prices have increased in the range of 3% to 5%, but now the price has dip to 2010 levels. Recent rare earth producers raised the praseodymium neodymium oxide offer, but a large number of downstream NdFeB magnets factory reject replenishment, turnover is rare, so rare earth market is showing no signs of stabilization and recovery, it can hardly be optimistic about the market outlook.

The reporter learned that the current semi-annual report has not been published Baotou Rare Earth, but from a quarterly perspective, Baotou Steel Rare Earth performance fell by 79.67%. From last year's situation, as the overall industry downturn, Baotou Steel Rare Earth three times issued "stop price" announcement. At the same time, the industry leading enterprises Minmetals, Chinalco and Xiamenwuye to follow its production. In the whole industry, "cut price" a month later, some rare earth stock market appears broad, including representative species of rare earth neodymium oxide, praseodymium prices rose 20 percent, reached 450,000 yuan per ton. But after a brief rise in rare earth prices will return to the down channel. Ultimately, the 2012 average price of rare earth fell about 40% over the previous year.

It is reported that, following the Baotou Rare Earth started this year's "cut price" After the first shot, the domestic rare earth industry, several leading companies will follow, are being implemented, "Stop insured." Industry experts believe that the second half will show a rare earth continued low prices or consolidation trend, and the enterprises converting full-year earnings improvement, but after the "cut-price" after the rare-earth prices continue to fall sharply little probability.



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The first and second batch of rare earth quota allocation

On July 1, the Ministry of Commerce issued the 2013 second batch of rare earth export quotas, light rare, heavy rare earth quotas of 13,821 tons and 1,679 tons. Baotou Steel Group, which topped the rare earth export quota, LREE 1662 tons, 93 tons of heavy rare earths.

As early as last year, the Ministry of Commerce issued the first batch of 2013 rare earth export quota 15,501 tons, of which light rare earth quota of 13,563 tons, 1,938 tons of heavy rare earth. Up to now, China's rare earth export quota in 2013 totaled 31,001 tons.

Compared to 2012, this year's rare earth export quota has not increased significantly. Reporters learned that in 2012, China's rare earth export quotas totaling 30,996 tons this year than last year, an increase of only 5 tons.

The first and second batch of the total were 15,500 tons, the basic plan is based on decentralized quota.

Reporters combed second batch of rare earth export quota list of companies found that access to the export quotas with the first batch of the same company, still 24, including Baotou Steel Group Corporation, China Minmetals Group.

Among them, the China Minmetals Group received light rare earth quotas 802 tons, 171 tons of heavy rare earths; Aluminum Group was light rare earth quotas 373 tons, 96 tons of heavy rare earths, are also big for the export quotas.

The Commerce Department said that the quota assigned according to the relevant enterprises from 2010 to October 2012 and the export performance computing. Quota in accordance with relevant companies from 2010 to 2012 export performance computing, and the enterprises export quota to notice shall prevail.

It is noteworthy that, placed in front of China's rare earth enterprises question is whether these quotas are exhausted. Customs Statistics Information Center data show that in 2012 China's rare earth minerals, metals and rare earth mixtures were exported 16,265 tons, down 3.5%, accounting for 2012 annual export quota of 30,966 tons of 53%. This phenomenon occurs not only in 2012, after the actual export volume is also far less than the export quotas.



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July 3 Rare Price Quotes

July 3: The current rare earth downstream receiving goods will for the time being insufficient, the manufacturers offer mixed views on the outlook due to confusion, rare earth prices continue upward or still to be seen.

Tax price of lanthanum oxide mainstream manufacturers 26,000-28,000 yuan / ton.

Cerium oxide mainstream manufacturers tax price 27,000-28,000 yuan / ton.

Praseodymium oxide mainstream manufacturers tax price 380,000-390,000 yuan / ton.

Neodymium oxide 250,000-260,000 yuan / ton.

Praseodymium neodymium mainstream manufacturers tax price 280,000-290,000 yuan / ton.

Praseodymium Neodymium mainstream manufacturers tax price 350,000-370,000 yuan / ton.

Europium oxide phosphor grade mainstream manufacturers tax price 3,700-3,900 yuan / kg.

Fluorescent terbium oxide level tax price of mainstream manufacturers 2,800-3,000 yuan / kg.

Dysprosium oxide mainstream manufacturers tax price 140-150 yuan / ton.

Dysprosium iron mainstream manufacturers tax price 145-150 yuan / ton.



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Japanese imports of rare earths from China accounted for 80% of total

Although in recent years, Japanese manufacturers trying to reduce dependence on Chinese rare earths, but "Japanese Economic News" reported that Japan's dependence on Chinese rare earth rise, not fall.

January 2013 to April 2013, Japan's rare earth imports increased by 19% compared with the same period last year, reaching 4,300 tons. Among them, the domestic rare earth 63% over the previous year increased 11 percent. In addition to China, imports a large amount of rare earth production in France and Vietnam, but these are rare in fact mostly from China's rare earth processing products, so in fact made ​​in China, Japan, rare earth accounted for 80% of total imports.

According to statistics, neodymium (used in magnets) of Chinese export price at the end of about $ 77 per kg. And dysprosium (used to keep magnetic) is about $ 575 per kilogram, compared with April fell by 4%, compared with July 2011's highs above 80%. Currently, neodymium prices have hit two years and eight month low, while the price of dysprosium also hit two years and three month low.



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LED light rare earth material application for international breakthrough

July 3, CAS length (Finance Court) Chun Institute of Applied Chemistry Co., Ltd. and Chengdu Sichuan Sony source collaborative R & D "light Yuhui Shou life controllable LED light rare earth materials research and development and in the semiconductor lighting application" results, organized by the Chinese Academy of Sciences recently the results of identification. The Group believes that the original rare earth luminescent materials effective solution has not been possible to break the international exchange of LED lighting strobe issues, and realized from basic research to industry by leaps and bounds, has reached the international advanced level, making China the world the only mastered through the production of rare earth phosphors AC low strobe LED products in the country.

It is understood that the existing LED light source using DC as a driver, at work must be approved by the AC and DC power conversion, energy consumption, heat tolerance, high cost, so developers can directly use the AC drive new LED lighting products are for the benefit of the people to promote the development of LED lighting industry significant demand. In addition, at present, the products have passed China's relevant certification, and Underwriters Laboratories (UL), the U.S. Federal Communications Commission (FCC), the European unification (CE) and EU environmental (RoHS) certification, sold in the United States, Canada, Mexico, Spain, Brazil and other countries, and has achieved remarkable economic benefits.



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