Backward production capacity constrained rare earth prices

By environmental factors, glyphosate, rare earth and other industries some companies are limited production, while the downstream industry demand to pick up, pushing up prices in these industries.

SANONDA Recently expected first half profit 125 million yuan -1.37 billion yuan, an increase of 4.2 times to 4.7 times. Our main products are up sharply increased production and sales, sales prices rise is mainly due to substantial increase in performance. SANONDA Main pesticide chemical products production and sales. According SANONDA 2012 Annual Report, the company has 13 million tons / year of caustic soda, 40,000 tons / year spermine, 30,000 tons / year of dichlorvos, 25,000 t / glyphosate, 10,000 tons / year of acephate , 8000 tons / year paraquat and 6000 tons / year trichlorfon and other production equipment. Analysts believe that the benefit from the national environmental policy tightening supply constraints caused by demand and export growth, the pesticide industry in the first half as a whole showed a shortage situation.

Glyphosate 95% of the domestic market supply, mainstream business at full capacity, some SMEs for environmental policy to suppress shut down for maintenance, small and medium enterprises operating rate dropped to about 60%. Currently, 95% of the original drug glycine route most manufacturers do not offer. By glyphosate prices, increased volume, Xin shares, country shares, shares of other companies are universally notice relatively large increase in the first half performance.

Place due to the rare earth industry to strengthen enforcement of environmental policies, promote the product prices.

In early July this year, rare earth prices rose across the board, especially in the heavy rare earth prices rose nearly 20%. The main reason is mid-June, the South increased the main producing areas of rare earth Luancai illegal behavior crackdown. Is considered to be rare in Luancai cause worsening water pollution Xunwu County in Jiangxi Province, the public security departments launched a massive campaign illegal mining report. Number of business-related persons have been arrested on suspicion of illegal operation, illegal enterprises were ordered to stop.

Previously, by the impact of rare-earth prices, the majority of rare earth concept for reporting the results of listed companies is not optimistic. Among them, the color of shares on the 12th is expected in the first half attributable to shareholders of listed companies net profit of 13.9136 million yuan -3478.39 million, down 50% -80%. The color of shares that the reporting period nonferrous metals and rare earth products prices continue to decline, the company related business profits substantially reduced. Recent price increases driven by the earth, the color of shares, Minmetals Rare Earth and other company's share price since early July rose more than 30%.

Also due to increasingly strict regulatory policies have led to price increases gelatin. In recent years, a number of irregularities in the pharmaceutical gelatin capsules suppliers and producers investigated was exposed after the formal capsule production enterprises sudden increase in demand, the price of raw materials gelatin on a long fast, from $ 50,000 / ton once rose to 19 yuan / ton .

Affected by this, gelatin manufacturer Toho biological expected in the first half attributable to shareholders of listed companies net profit of 24 million yuan -2650 yuan, an increase of 64.07% over the previous year -81.16%. The reason is that equity investment projects gelatin full production, the first half of 2013 gelatin production, sales have increased considerably over the same period, economies of scale appear. Since the first half of 2013, due to market demand and product quality improvement and other reasons, gelatin greater price rise over last year.

Some media reported that many ministries will soon improve the "policy mix" to strengthen the bank loan approval management, implementation of differential pricing, the total energy consumption limits, accountability, and other old and new production capacity of enterprises linked to investment and production constraints inhibiting capacity Excess blind expansion of industries. Analysis pointed out that this will benefit the relevant industry boom recovery.

Tightening of environmental policy with the industry, product prices contrary, because the policy is relaxed in some industries the opportunity to obtain recovery. Energy Shuangliang year interim results are expected in 2013 increased 150% -200% due to the NDRC will "disposable foam plastic dinnerware" From "Guiding Catalogue of Industrial Structure Adjustment" to delete the elimination products, related policies to further promote the styrene downstream product recovery.


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