Ganzhou Rare Earth Mineral Gangster discontinued volume is still soaring

Recent rare earth permanent magnet plate fierce offensive launched in the secondary market, "states eight ministries rectification Rare black industry chain, the fifth Baotou Rare Earth Forum also revealed positive signals, many people changed the rare earth prices continued to rebound kinetic energy limited view, but that the price boom continued existence-than-expected. "Yesterday, the Shanghai a fund manager of the" Securities "reporter said.

However, the rare earth industry insiders has to "severe" to determine rare earth outlook. WTO rare earths will be the outcome of litigation or the end of the hammer, China canceled export quotas, tariff reductions as a high probability event. In order to avoid the rare earth industry to return to competing prices, reproduction "cabbage price" formula, government departments have been trying to build rare earth industry group, to influence the supply of Illegal production volume and structure, but in the interests of the face, the promotion of these initiatives extremely difficult.

Doubling of prices of heavy rare earth

Last week, the China Rare Earth Industry Association accelerate the preparation of rare earth price index climbed nearly 200 points. The index in December last year, about 234 points, lows in July 3, 2013, fell to 154 points, down 35%. Over the past two months, compared with lows of rare earth price index rose as high as 30 percent, of which praseodymium, neodymium, terbium, dysprosium, europium price rise of 100%.

It is understood that on August 7th day laborers Ministry and other eight departments jointly issued a document, the decision on the rare earth mining, production, circulation of illegal activities for a period of three months (8.15-11.15) blow special action. "Securities" contact the brokerage researchers said, and visited Ganzhou Rare Earth compared to rectify the situation, the special action of greater intensity, broader, ranging from illegal exploitation investigate illegal mining, smelting enterprises mineral source separation legality verification extended to trade enterprise is legitimate sources of rare earth products, and clean up the recovery and utilization of waste products of rare earth enterprises.

In addition, in recent years, the demand side of the fastest growing rare earth permanent magnet materials - praseodymium neodymium heavy rare earth elements dysprosium, terbium, etc. showing signs of shortage. On August 8, the fifth held Baotou Rare Earth Forum, China Rare Earth Industry Association Secretary-General Ma Rongzhang proposal, rare earth development "severity are different", with a focus on heavy rare earth exports gradually liberalized light rare earth production mandatory plan, while implementing purchasing and storage plan smooth price fluctuations.

Researchers aforementioned judgment, which to some extent the rest of the year may be strengthened expectations of purchasing and storage, supporting the next few rare earth prices remain high or continue upward.

Five percent difference is difficult to stop private mining

Who rejoiced in the capital on the occasion, in the just concluded rare forum, participants call for "the next five years, the rare earth industry will face more severe challenges" sound.

"Securities" reporter has learned that the national total of 45 rare earth mining permits, including 44 in Ganzhou Mining banner. Since September 2011, due to Chinese rare earth mining exceeded, Ganzhou Mining overall situation in the cut, which sells inventory. Is the case, in 2012 the South Mine prescriptive plan 13,400 tons mined, but at least when the actual production 37,000 tons, the South mine Qi Cheng products of unknown origin. Although prices have been falling during the first half of this year, but according to China Rare Earth Industry Association statistics, in the meantime rare earth minerals production has reached more than 90,000 tons, an increase of 29%, exceeding the annual production quota system.

"Black industry chain" does not change the rampant huge interest-driven dictates. In the aforementioned rare earth forum, industry insiders, the current informal mining companies need to pay resource tax, VAT and bear environmental costs, these costs together account for over half of sales price per ton of rare earth minerals, and do not need to pay any taxes private mining This difference can be easily obtained.

Admittedly, the current state of the private mining hit badly, "private mine owners everywhere, catch up on the jail." But Jiangxi Ganzhou a source close to the "Securities" reporter revealed that the vast majority of private mining in the mountains inside, the Government is very hard hit, are "people do not give officials do not study," only control rare stamps can be truly dedicated to combat. Before us is the result of Ganzhou Mining discontinued for 2 consecutive years, the province's separation of rare earth smelting enterprises mainly rely on the original inventory and raw materials purchased from other provinces. It reflects the current inventory at the end of the original is about exhausted, and increasingly difficult to purchase raw materials from other provinces. Over time, the industry normally or cause problems.

The person can not help but worry, the price of a storm on the negative effects have not been eliminated, the early application of rare earth materials rapidly shrinking market recovery is slow, overall demand is still sluggish. "This will restrict the price upside, even in mid-November after the joint reorganization, fear of return to earth prices decline."

"Old aristocracy" to new materials

Rare sword hanging litigation, but also to future price movements highly variable. March 13, 2012, the European Union, the United States and Japan to the WTO on China rare earth, tungsten, molybdenum export management measures of the "request for consultations." Meanwhile tripartite appeal said that China's 17 kinds of rare earths and tungsten, molybdenum and other metals export quotas and export taxes and other restrictive measures, in violation of the relevant provisions of the WTO. About raw materials in accordance with WTO antitrust litigation process, the longest in two years the litigation results will hammer. "Securities" reporter has learned that the end result or will come out, the industry generally believe that the probability of losing a large rare earth litigation. This also means that state on rare earth quotas, tariffs and other regulatory instruments are canceled.

Rare countries have clearly established a large group, asked the central enterprises to accelerate the pace of integration, in order to export quotas ahead of the layout. However, according to media reports, the current North Rare Earth Group Although clearly integrated approach, that is, Baotou Steel Rare Earth as a leader, but 12 to be still in the preliminary assessment of the combined company which is not true integration. Southern Rare Earth integration is more unfavorable, on the one hand the seven group compete with each other, who will tap delay is difficult to determine, the rare earth industry consolidation targets fall foregone conclusion.

Galaxy magnet insiders respect, at least for now it seems the government price regulation of rare earth limited role. Under the conditions of a market economy, prices should be determined by the market, in full consideration of environmental, resource costs, to ensure a reasonable profit earth. Baotou Steel Rare Earth Rare Earth executives in the forum proposed to establish long-term price stability mechanism of rare earth products, restore the user consumer confidence.

During the interview, the industry also suggested that the rare earth industry should increase scientific and technological innovation, promote the resources of rare earth minerals to convert high-quality refined products, to meet the rapid rise of the rare earth new materials and applications businesses.


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