MIIT new round of efforts to rectify the unprecedented Rare

According to reports, the Ministry of unprecedented new round of efforts to rectify the earth, environmental protection, Customs, Ministry of Land Resources, Ministry of Commerce and other ministries will conduct several rounds of inventory. According to discuss the program, the Ministry will organize a large group of rare earth as the 2013 program priorities. Will focus on the existing business enterprise involving rare earth as the main assets as a link, established in accordance with market rules. And the state will crack down on black industry chain to bring the industry chaos, stability of rare earth industry price.

New round of rare earth industry consolidation brewing or will usher in a new order

Currently, the progress from the point of view, has been preliminarily identified formed by the Baotou Rare Earth, Rising colored, aluminum Group, Minmetals Ganzhou Rare Earth Group 5 leading enterprises led industry consolidation. For the formation of the Ministry ultimate goal of integrating the formation of rare earth enterprises nationwide is 2 to 3 large enterprises. By then, the state of the rare earth industry management efforts will be more sets, rare earth resource development, smelting separation market circulation, export quotas and other issues will also be effective in improving promote the healthy development of the whole industry.

Supply and demand of rare earth exports rose behind end dual stimulation

This year, although prices are still weak, but the country of rare earth trade rebounded track every month since February, exports have gradually rise. According to the National Customs this week to provide information, in April, the national capacity of 2,196 tons of rare earth exports, an increase of more than six times, compared with March exports increased by 28%. Using government data center consulting services of Customs statistics indicate that in the first four months, the national export volume of 6,112 tons of rare earth.

Investment Advisor in the metallurgical industry researcher Yuan Zhibin, said upstream suppliers to downstream demand to pick up inventory requirements dual stimulation, resulting in a quarter of China's rare earth exports increased significantly. But prices continued to slump circumstances, export growth to China's rare earth companies did not bring the same positive earnings.

2010 skyrocketing price of rare earth on the one hand to promote research and development of a large number of enterprises are turning to alternative technologies earth, on the other hand led traders to hoard goods firm behavior. August 2011 to allow traders continued to decline after the losses, but also strengthened its reluctance to sell will. In addition, the shrinking demand, sluggish exports indicators are mined each year is greater than the market demand, and because of cheap rare earth mining costs, mining companies are the most complete index full capacity even exceeded. In addition, periodic repeated illegal mining of rare earth digging of private market supply and demand imbalance led to increasingly serious, and because of production to export the entire supply chain, not a ticket, low cost of production would be justified to pipe out of the market of rare earth, rare earth stocks steadily climbing common cause .

Despite the large number of rare earth group purchasing and storage and other means to take control of the market supply, but the pre-corporate crazy stockpile and subsequent development of alternative technologies, resulting in rare earth prices are still drifting lower, up to now has been falling for about 20 months, is much larger than previously down cycle. With rare earth projects in other countries and gradually put into production, future global rare earth supply will be more relaxed, only two Australian Lynas U.S. Mountain Pass mine project will meet the current demand for rare earths in addition to abroad. Moreover, demand for rare earth series released in Japan found that the amount of rare earth day, earth cooperation with India to achieve substantive progress and Toyota rare earth extraction techniques applied to the field of electric vehicles in this series of messages, the Japanese earth depends on the country has declined.

Therefore, the slow pace of de-stocking, development of alternative technologies and foreign rare earth project competition context, rare earth prices will continue to decline. While being based on such expectations, leading to China's rare earth export enterprises will increase. Compared to the large Rare Earth Group, up cycle traders stockpile many more fragile financial chain, prices continued falling prices of the next 20 months, and its willingness to sell is strengthening. Inner past four months the composition of exports of rare earth view, private sector exports grew much larger than the magnitude of state-owned enterprises.

From the demand side perspective, Abe quantitative easing policy to stimulate economic madness, the yen depreciated. The demand for rare earths, on one hand early accumulation of rare earth materials have been exhausted, into the restocking phase; hand yen devaluation increased risk aversion also stimulate them to take other currencies alternative to rare earth element is undoubtedly related to the low Enterprises have a strong appeal.

In addition, the global economic recovery is expected, especially in the U.S. housing market to pick up, enhance the market expected the Fed to reduce the scale of QE, which boosted market confidence. This was originally the EU into a debt crisis is undoubtedly a major benefit to companies operating rate has increased, this year, the PMI index from the EU trend can be seen.

Therefore, while the supply side to the inventory based on national rare earth enterprises demand and export prices are expected to bring increased willingness; hand restocking demand side needs to improve capacity utilization, dual stimulation led to a quarter of China's rare earth exports rose.


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