Rare crackdown landing promote the healthy development

Despite the recent sharp rise in rare earth prices, but it is only short-term performance, the downstream demand is what determines whether the price of rare earth showing steady growth of the main factors. When the manufacturing weak downstream demand short time is difficult rapid growth recovery in the case, national policy continuity is crucial. If the relevant policy or campaign continues, rare earth prices likely will continue to be steady for some time.

Recently, the Ministry of Industry and Information Technology, Ministry of Public Security, Ministry of Land and other eight departments jointly launched to combat rare earth mining, production, circulation of illegal special action officially started. So far, the industry has long been popular rare earth "hitting" action finally landed. Previously, rare earth prices have already heard this rise, rare earth industry seems to usher in a good, but industry insiders said rare earth industry, how the situation in the future, depends on whether there is strong support for the downstream market, the continuity of good policy and policy implementation efforts.

Heard good news rare earth prices rise

After a sharp decline after 2011, rare earth prices have been at low levels. However, the recent rare earth market has finally ushered in a fiery. Beginning from July 2013, rare earth prices generally rise, which praseodymium neodymium, dysprosium, terbium, europium and other basic products prices rose 30% -40%, dysprosium oxide and up to 75 percent of the increase.

The industry believes that the current round of price increases and the current national efforts to rectify the rare earth industry in combating private mine closely associated. It is reported that in mid-June this year, Ganzhou mine inspection bureau organizations, private local rare earth mine conducted a comprehensive blow. Subsequently, Ganzhou forestry sector also carried out actions against exploitation of rare earth occupation of forest land. Affected by the strong share price performance rare earth permanent magnet plate, which since July Minmetals Rare Earth stock has risen 50.27%, Sheng and resource shares are up 58.91%.

This year August 15 to November 15, the Ministry of Industry and Information Technology, Ministry of Public Security, Ministry of Land and other eight departments join forces in the fight against rare earth mining, production, circulation of illegal special action. Focused on investigating illegal poaching, exploration and exploitation of undocumented illegal; ban illegal mining (recycling) mines, minerals and confiscate the illegal income, and will be punished; clean up illegal construction projects in the recovery of rare earth resources, conduct, did not seek recycling behavior of rare earth resources, and immediately ordered to stop production rectification.

The industry believes that these policies may continue to promote earth floor prices. Wikipedia information analyst Du Shuai soldiers said, after many parts of the domestic private mine has started action against rare, the recent focus of national policy is to combat illegal exploitation of rare earth, want to control the extraction from the source to enhance the rare earth industry's overall profit. "In recent years the phenomenon of repeated Luancai private dug earth, because no environmental costs of illegal miners, with ultra low sales a tremendous impact on the market, but also a serious squeeze the living space of informal enterprises, therefore, thorough investigation of the overall fight against private mining speaking will push up the overall price of rare earth industry. "

It is reported that the Ministry of Industry and Information Technology and other eight departments in the fight against illegal acts of rare earth during the special action, the Ministry of Industry and Information Technology will most likely introduce relevant regulations, promote the formation of rare earth industry to further regulate long-term mechanism. Zhuo record information analyst Bei Zhang said that if this series of policies to effectively continue implementing it, will help stabilize the rare earth market, curb speculation behavior, the formation of a fair, open and equitable prices of rare earth products.

In addition to short-term speculation suspects prices is difficult not optimistic

Du Shuai Bing, currently rare earth industry is in the traditional sense of the off-season, and the NdFeB permanent magnet materials, luminescent materials, rare earth hydrogen storage materials and other major developments in the industry downstream applications poor, weak demand. The major listed companies in rare mid-year financial report also proved this point. Heng Industrial Co., Ltd. Jiangmen Bureau released 2013 half year results notice, the first half, net profit attributable to shareholders of listed companies fell 85.54% over the previous year -95.18%. Xiamen Tungsten released semi-annual report, net profit attributable to shareholders of listed companies to 71.1757 million yuan, down 77.69%, which continues to slump in the first half of rare earth products, sales prices and sales volume fell sharply, leading to affiliated companies in Fujian Province changting Jinlong Rare Earth Co., Ltd. due to operating losses and provision for inventory losses of 109 million yuan to prepare. In addition, Taiyuangangyu, Keheng shares JPMF number of listed companies have announced in the first half net profit fell.

Some experts said that despite the recent sharp rise in rare earth prices, but it is only short-term performance, the latter is not optimistic about rare earths market. Reason is that the recent rise in rare earth prices, mainly due to the state in addition to the illegal exploitation of rare earth smelting products to combat intensified, so that separation of the illegal exploitation of mineral and smelting companies have discontinued the illegal supply of a significant reduction of rare earth products, it also exists as speculation , took the opportunity to lift the price of rare earth products may not lower the real demand pull.

Du Shuai Bing said: "Rare earth is not a formal market-oriented industries, small plate, easy to hype it like metal, prices may rise and supply changes, the supply of rare earth industry, even if the product is large, as long as there trader speculation, the price can be fired up. "

In addition, Bei Zhang also said that the Ministry of Industry and Information Technology to carry out remediation after news of rare earth, some sellers worry about the future of rare earth rare earth supply, stockpile appear reluctant to sell, resulting in a rapid rebound in the short term prices.

Rare earth prices go, first decide on the downstream demand. Du Shuaibing analysis, in the long run, enabling national policies to stimulate return to reasonable prices of rare earth products to enhance the industry profits. But in the short term, weak downstream demand of rare earth, rare earth prices rose too fast and if the downstream applications will play a certain rejection. Therefore, the market is not optimistic about the latter part of rare earths.

The healthy development of the industry need to look at policy enforcement

In addition to prices return to reasonable outside the Ministry of Industry and Information Technology in the fight against illegal rare earths will also conduct special operations to eliminate unhealthy competition in the entire industry, the formation of a large group of rare earth has played a certain role.

Turning to the current state of development of rare earth industry, Bei Zhang said: "The separation of rare earth smelting industry serious excess capacity." Du Shuai soldiers also believes that, in recent years, many rare earth smelting separation plant respond to national call, has been integrated into a large group, but Overall, the rare earth smelting separation plant products supply is still very large. According to him, the state gives the rare earth smelting and separation indexes and market demand considerable, but the separation of rare earth smelting plant capacity is very large, while the state allocated to the production of rare earth smelting separation plant with production capacity falls far short of targets, rare earth smelting separation plant poor survival situation. Therefore, to ensure the interests of rare earth smelting separation plant selection desperate, looking to make up their own private ore production capacity of waste. This will lead to private dug Luancai repeated, the supply of rare earth smelting and separation products increased.

Meanwhile, the rare earth industry concentration is low, many enterprises, but the lack of core competitiveness of large enterprises, industry self-regulation is poor, there is a certain degree of vicious competition. Xiamen University, China Energy Economic Research Center Lin Boqiang that the immediate importance of the prompt implementation of the rare earth industry consolidation. Through the integration of rare earth industry to inhibit disorderly exit, eliminating self vicious competition purposes to ensure efficient implementation of the rare earth resources strategy.

With the national anti-mine efforts to increase private and private dug Luancai and illegal conduct rare earth smelting separation phenomenon will be effective governance, and was recognized by the State of rare earth smelting separation plant to continue to develop, we must close the large group. This will further accelerate the industry consolidation, increased industrial concentration.

For the rare earth industry development of the next, Du Shuai Bing said, depends on the continuity of the relevant favorable policies and government enforcement. Because the downstream demand is to determine whether the price of rare earth showed steady growth of important factors, but the current domestic and international economic environment, manufacturing weak downstream demand in a short time is difficult to rapid growth recovery. In this case, the continuity of national policy is essential. If the relevant policy or campaign continues, avoid sports-style action, then there may be rare earth prices will continue to stabilize over time; if the enforcement of the national policy to relax, then do not rule out a new rare-earth prices will likely continue to decline in a market.

It is learned that in order to solve the problem of rare earth industry, weak downstream demand, the Ministry of Industry and Information Technology is preparing to promote downstream applications of rare earth market policies to reverse the current decline of rare earth industry. In mid-July of this year, China Rare Earth Industry Association in China Academy of Engineering organized the overall development and application of rare earth resources strategic planning seminars, China Rare Earth Industry Association Deputy Secretary-General Chen Zhanheng introduced the "rare earth resources and the application of the overall strategic development plan," the drafting of outline . The industry believes that, once the "overall development of rare earth resources and the application of strategic planning," released during the year, the whole environment for the survival of rare earth industry, or are expected to reverse.


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