Rare heroin profits but no risk?

Rare earth industry to upgrade the second wave rectification actions. August 7, led by the Ministry, Ministry of Public Security and other eight ministries joint special rectification program of action of rare earth industry official release. From August 15 to November 15 to carry out special operations, with emphasis on investigating a number of private mining, poaching and other illegal typical cases. This is also the first time in two years, on the rare earth industry, the largest special rectification action.

Remediation work will be in the fight against illegal poaching and eliminate unhealthy competition, the formation of a large group of rare earth play an active role.

As an important strategic resource, rare earth in 2012 along with the global economic downturn, the industry has become one of the most injured, many rare corporate profits or even losses dropped significantly.

Last year, some rare earth products prices fell even reached 75%. Statistics show that in 2012 China rare earth ores, metals and compounds export volume was 1.63 million tons, down 3.5%, and far below the 2012 export quota of 31,000 tons. In addition to the economic downturn impact, rare earth export restricted net decline of domestic enterprises has become an important reason. China was once the world's leading supplier of rare earth, accounting for up to 95%. However, for the protection of scarce resources, since 2007, China began to implement mandatory rare earth production planning, and begin to reduce exports of rare earths. And 2012 is seen as the most stringent regulation of rare earth industry for one year. In this regard, many countries continue to broaden our pipeline of rare earth imports, attention gradually turned to Vietnam, Mongolia, Pakistan and other countries to reduce dependence on China.

Not long ago, the Ministry held a national work conference to further increase the mobilization of rare earth mining, smelting separation, environmental protection, import and export order rectification and strengthening the rare earth industry management, remediation activities are still mainly against rare earth mine private. Affected by the campaign, some sellers worry about rare earth supply, stockpile appear reluctant to sell, resulting in a rapid rebound in the short term prices.

Secondary market, turning the long earth plate up again scenery, rare earth prices have rocketed news sparked renewed enthusiasm to do more, the recent emergence of an underlying stock rally.

"RE prices rebounded inherent to a reasonable price range needs." China Rare Earth Industry Association Deputy Secretary-General Chen Zhanheng in said rare earth prices in the doldrums over the past year, many have been separated smelters unprofitable, or even a loss. Recent affected by various factors, of rare earth price spikes have some element of speculation. "RE prices always fluctuate large, easy to spike."

Recent price increases in the heavy rare earths, dysprosium oxide prices higher, the highest increase of 70% or more. Dysprosium metal in a larger amount of magnetic material in the wind power, hydropower and other fields versatile, the recent price rise may be related to the downstream industry demand for green energy, but the long term, the emergence of alternative technologies will likely make prices fall.

In the three-month renovation period, the Ministry will also timely introduction of relevant regulations, promote the formation of rare earth industry to further regulate long-term mechanism.

"Rare earth industry, the profits of heroin, but not the risk of heroin, various forces can play a role here, not white do not do." Rare earth traders pointed out that the time of low prices 20,000 yuan -3 yuan / ton, when the highest price 400,000 yuan / ton. Low cost, high profit. Rare is more addictive than drugs. This is a chain of interest, and tied to the officials from the people, from the mine to traders, from the local to the central rate of the broader social and market relations.

Profiteering result of repeated illegal mining and smuggling, but also makes the price spike. Combat and regulation that regulate the market, protect the environment. And the establishment of rare earth exchange will help stabilize the market and curb speculation speculation, the formation of a fair, open and impartial rare earth product prices, is conducive to long-term healthy development of rare earth industry.

Remediation industry will accelerate mergers and restructuring. After this round of regulation, does not exclude a large Rare Earth Group approved listing. May 2011, the State Council issued "on the promotion of sustained and healthy development of rare earth industry a number of opinions" made with 1-2 years' time, the basic formation of large-scale enterprises as the leading pattern of rare earth industry, the South ionic rare earth industry's top three bit conglomerate industrial concentration above 80%.


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