Rare earth prices counterattack exploration because private traders checked mine stockpile

First half of the rare earth market downturn, price and volume are greatly reduced. In the absence of demand to support the case of the recent rise in rare earth prices are contrarian, Baotou Steel Rare Earth and Rare Minmetals shares last week after another limit.

"This is a rare earth prices rose too unreasonable." Rare earth analyst Du Shuai Bing told reporters.

In addition to re-price the Baotou Rare Earth, Minmetals close dysprosium, the industry said, Ganzhou Rare Earth Industry remediation, traders took the opportunity to pull stockpile rare earth prices go round price is the reason.

It is reported that China Minmetals Rare Earth Co., Ltd's rare earth smelting separation plant - a wholly owned subsidiary of Jiangxi County Red Gold Rare Limited also involves the use of a private mine, since June has been suspended since late production. Reporters on the above issues to the China Minmetals Group confirmation, Minmetals said the matter knowledge.

Anomalous rare earth prices soar

Since early this year, rare earth prices have been in the doldrums, prices have fallen to 2011 levels before skyrocketing. However, Baotou Steel Rare Earth and other leading enterprises has gone against the tide recent price increases.

Xiamen Tungsten, the color of shares in the first half results announcement showed in the first half of rare earth market downturn, price and volume are greatly reduced.

July 11, Xiamenwuye first-half earnings announcement, net profit attributable to shareholders of listed companies 71.1757 million yuan, down 77.69%. Among them, rare earth products continues to slump during the first half of this year, sales prices and sales volume fell sharply, leading to affiliated companies Changting Jinlong Rare Earth Co., Ltd. due to operating losses and provision for inventory losses of 109 million yuan to prepare. The color of shares is expected in the first half attributable to shareholders of listed companies net profit of 13.9136 million yuan ~ 34.7839 million yuan in the previous year fell 50% to 80%.

Market downturn has stimulated the traditional sales season, leading enterprises have begun to raise prices a bailout - July 11, Baotou Steel Rare Earth metal praseodymium neodymium t price raised to 365,000 yuan, while the price of only 310,000 yuan in early June, 6 by the end of 34 million.

In addition, since June 20 began, a number of rare species prices are gradually rising. Light rare earth neodymium praseodymium oxide rose represents 12% of the heavy rare earth dysprosium behalf up to 30%. According to the information provided, as of July 12, praseodymium neodymium oxide market tax price of 285,000 ~ 295,000 yuan / ton, tonne lower than the previous day rose to 5,000 yuan; metal praseodymium neodymium 380,000 ~ 385,000 yuan / tons and tons lower than the previous day up 15,000 yuan; terbium oxide is 3200 ~ 3400 yuan / kg, per kilogram from the previous day rose 400 yuan.

Minmetals its separation plant checked

An interview with reporters believe that the current round of price rises is due to Ganzhou Rare Earth comprehensive anti private mines, rare earth traders hoard goods not due.

June, Jiangxi Ganzhou mine safety supervision bureau directly under the branch departments with non-coal mining enterprises within their jurisdiction to conduct a special inspection of the rare earth ore for comprehensive anti-private, multi-mineral inventory of furniture was closed. Reporters from Ganzhou several rare earth enterprises at that, Minmetals Rare Earth's Jiangxi Rare Earth Co., county red gold mine due to the use of private, temporarily halted.

Gan County Red Gold Rare earths are important local rare earth separating enterprises. 2008, Minmetals Minmetals Nonferrous Metals Group Co., Ltd. joint Gan County Red Gold Rare Ltd. and South China new material fixed Resources Limited, jointly established the China Minmetals Rare Earth Co., Ltd., Jiangxi County Dingnan red gold and rare earths Dahua new material has been incorporated into Minmetals Rare banner.

This is rare territory south central enterprises compete for the layout. Central enterprises in 2008 is basically a rare earth prices began to rise, only to realize that to compete Southern Rare Earth, but more business cooperation with local separation, separation of smelting link from intervention.

Minmetals Rare Earth Company headquarters no production capacity, the general procurement achieved through trade sales. Local application of rare earth materials, one yuan business person in charge told reporters: "the game between interest groups. Mineral resources in the hands of Ganzhou Rare Earth Mining Company, is certainly the first feed their own enterprises. Others separation plant stuck his neck, have enough to eat . "

"From the share of regular source of ore pipeline not enough, pipeline separation plant had to take from another private mine." The company official said, "Ganzhou Rare red gold caught in this regulation in the positive with the end of June to suspend production. "

Reporters on the above issues to the China Minmetals Group confirmation, Minmetals said the matter knowledge.

Separation plant hungry traders hoard goods

Person in charge of a number of rare earth separation plant, told reporters that the mandatory production enterprises with business plan targets capacity mismatch. In Jiangxi County Red Gold Rare Ltd., for example, on January 15 this year, the Ministry of Industry and Information Technology issued a 2013 first batch of rare earth production plans mandatory notification, Gan County Red Gold Rare company received the first batch of this year prescriptive Indicators 835 tons, will be South China company received 600 tons of new materials. The first annual general quota is equivalent to half of the quota.

Two rare earth enterprises total production capacity 9000 tons / year, including Gan County Red gold is 4600 tons / year, given South Huawei 4400 tons / year. Public data shows that in 2010, two companies separated output reached 7,000 tons, nearly 80% of capacity utilization; 2011, capacity utilization is less than 50%, in 2012 the actual production was 2,194 tons, capacity utilization fell to 20%. According to this index calculation, Minmetals Ganzhou two rare earth separation plant capacity utilization rate is only 30%.

"In this case, the separation plant in order to ensure efficiency, will go to the private mine." An isolated company official said, but now the national efforts to combat large private mine, part of the separation plant had an empty stomach. The dollar company official told reporters that in their business, for example, the regular source of ore started normal enough in the past half of the amount.

In the state of rare earth minerals to combat private, some companies have been remediation discontinued. Traders taking advantage of this opportunity. Insiders said that many traders Ganzhou Rare Earth does not currently ship, store goods to be gone up.

"Rare earth prices have been low to a certain extent, the separation plant are at a loss, prices have been bottom of the range, rare earth enterprises and traders need to stimulate you, too need incentives to market price to fly a while, although this is contrary to order." The company official said.

But Du Shuai soldiers on the market outlook is not optimistic: "This approach in the end how long? European immediately into the summer break, the procurement will be more sluggish." Lack of demand to support the price of rare earth in a variety of artificial stimulation, fear will continue to slump.


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