Decline in performance rare earth enterprises out of the "low performance" little hope

" Data Hero, results see success or failure" , seemingly overnight , a few years ago from the rare earth industry boom transformed into a depression.

By the first half of rare earth products prices continue to fall , the recent semi-annual report released by listed companies in the rare earth showing bad data , and even North Baotou , South Rising , dongxia tungsten, in varying degrees, Minmetals also declining performance .

Baotou Steel Rare Earth recently released semi-annual report, first-half operating income of 4.832 billion yuan , down 23.27% ; colored Rising released in 2013 half year results notice , it is estimated in the first half operating income of 495 million yuan , up down 55.94% .

Adjustment in the global economy is still in the recovery phase , the domestic economic growth is slowing , rare earth product prices continued to fall, so that the domestic market is also weak demand throughout the rare earth industry downturn .

Research Fellow in the Waterhouse Chang Hsiang opinion, rare earth product prices , industry overcapacity , capacity utilization is less than 40 % of the entire range of product applications of rare earth industry is very limited, therefore , also caused weak market demand .

"In addition, rare earth industry disorder, Jet Hematite smuggling phenomenon is more serious , and this phenomenon is to suppress the domestic rare earth prices , but also caused a severe decline in the performance of rare earth companies ." Chang Hsiang in the "China Sankei Shimbun " reporter, said .

Chang Hsiang believes that the decline in performance of listed companies also have a great relationship with the policy , at the policy level , the government introduced a series of protective rational development of rare earth resources , rare earth prices soaring , more and more enterprises to enter the rare earth market , attracted a large number . " black " secretly mining enterprises and tax evasion, profiting from , causing chaos throughout the rare earth market .

Throughout recent years, the domestic rare earth enterprises in the market environment , most of the time falling prices of their products in the stage , which is rare weak performance of listed companies is one important factor . As early as 2010 to 2011 , A-share market leader Baotou Steel Rare Earth ever created 29 months or more than 17 times the record. However, the good old days gone, from the rare earth industry profits into recession in less than a few years , the face of rising market prices downward , to Baotou Steel Rare Earth and other large domestic enterprises have to seize the limited production, discontinued this last one the straw in order to protect the price .

However, he was full of ideals was a cruel reality suppress messy , suffered a crushing defeat , the rare earth market could well be " never recovers land" means.

"This macroeconomic fluctuations have a great relationship ." CBIW Industry Research Institute industry researcher Xu full Jin in the "China Sankei Shimbun," told reporters .

XU Man- Jin told reporters , rare earth has the "industrial vitamin " reputation, directly or indirectly applied in various industries in the national economy , so demand for rare earth macroeconomic fluctuations have a huge impact . On the one hand , China's petroleum, chemical, metallurgy, textiles, ceramics , glass, magnetic materials and other industry downturn , but also affected the company 's rare earth consumption ; hand, downstream key application areas of investment in fixed assets also have a certain level of weakening , the impact of the expected demand for rare earth market .

" China Sankei Shimbun," the reporter was informed that, as early as 2010, the rare earth market in rapid outbreak stage, therefore, many local governments are also plans to build a lot of rare earths park. Rare Association Secretary-General Ma Rongzhang in an interview , said the existing 18 national parks, park planning similar to these , and many more resources to the midstream and downstream industry chain extension of the core of these rare earths park's construction will lead to excess production capacity further .

"Not only that , many illegal production out of the earth into the market, with the price advantage of these rare earths to seize part of the market share, the affected part of corporate revenue and earnings , which have great impact on the market ." Xu full Jin said .

For the future of rare earth market , Chang Hsiang expressed concern. He introduced the short term, subject to the impact of remediation activities , is expected to be a considerable number of the next sale of illegal exploitation and black business was shut down , the market supply reduction, the price will be bullets . But in the long run, the rare earth industry is difficult to change the situation of hardship , lack of effective demand-driven industry , in addition , the establishment of large enterprise groups , the difficulty to achieve industry restructuring is still large , the future of rare earth market has not improved much .

More worrying is that China's rare earth industry overcapacity , leading to oversupply , market competition, overcapacity problem will become more serious . Faced with this dilemma, the rare earth industry to the altar , when the diameter of the open up Rocker .

XU Man Jin believes that for China's rare earth industry, the industry should strengthen market supervision , focus on strengthening the rare earth mining , processing, distribution and other aspects , maintaining market order , and cracked down on illegal production and operation of enterprises. For the rare earth enterprises, respond to strengthen technological competitiveness , increase value-added production and processing of rare earth , rare earth extends downstream applications , the development of rare earth products with high technological content .


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