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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