Purchasing and storage of rare earth rich upstream alleged enormous benefits divided by several large groups

Recently, some media reported that the state purchasing and storage plan will be ten billion rare earth opened in October , there are already purchasing and storage enterprises began to quietly raise funds to expand production scale , etc., to meet this national reserve .

According to reports, the purchasing and storage enterprises have six participating , purchasing and storage products praseodymium , neodymium oxide, praseodymium oxide , neodymium oxide, dysprosium .

In this regard, industry analysts reporter , from the perspective of the whole industry chain , purchasing and storage of rare earth in reality is "Combating downstream rich upstream . "He believes that this involves the distribution of benefits chain deep-seated problems , Minmetals , Baotou other upstream companies to benefit from purchasing and storage .

" Shouchu only reduce the supply , driving up prices, although in the long run , is indeed healthy development direction, but it does not solve the most critical rare earth industry downstream demand to reduce the problem , is not sustainable. "he told reporters .

Purchasing and storage price becomes critical

Widely believed , the state purchasing and storage of rare earth price, is the most critical part of the entire purchasing and storage part.

According to earlier media reports, the plan will be slightly higher than the national market prices recently purchasing and storage . Analysts believe that if the state purchasing and storage at higher than market prices , will lead to currently hold stocks of goods , such as hoarding of goods traders and manufacturers earn pours . At the same time , the supply contract , the earth will be more serious hype , holding the goods will be an occasion to price increases.

The market is still a popular way of purchasing and storage pricing is in accordance with the first eight months of this year the average price of purchasing and storage . "In this regard we do the statistics , and concluded that the first eight months of this year , the average price is lower than the current market price . "the analyst said . He believes that if storage price below the market price, then the market will stimulate enterprises purchasing and storage price increases confidence in the setback .

State of mind for purchasing and storage from 2007 . In 2011 ago, the majority of people do not know the value of rare earth deep , resulting in a lot of cabbage prices of rare earth products are sale to foreign countries, illegal smuggling rampant. Thus , the state decided to raise prices through purchasing and storage means , purchasing and storage concept was first proposed .

An industry told reporters , after a hurricane assault rare earth prices after 2011 , China's rare earth prices in recent years has emerged dramatically plummeted. According to the U.S. TMR 's follow-up study , currently has 37 foreign countries and regions, 261 companies up to 429 rare earth projects, including the United States , Australia and other 13 countries, 38 large rare earth project progress . The data also show that the next 5 years, China 's rare earth production will grow beyond 10 times , so Wang Jian believes that the current purchasing and storage for price stability is also a great help .

But through Shouchu desire to raise the price of rare earth in the end of last year a purchasing and storage process has been demonstrated little effect . Last year, the country had passed Baotou Steel Rare Earth and Rare Minmetals Rare implemented before purchasing and storage , but never released the exact price and purchasing and storage of rare earth total .

According to a number of rare earth production information organizations for business research , purchasing and storage of rare earths last year, the State Reserve Bureau amount is: 11,000 tons of lanthanum cerium , praseodymium, neodymium 4,000 tons , 1,000 tons of neodymium , praseodymium 500 tons , 200 tons of europium , terbium 150 tons , dysprosium 400 tons , 2500 tons of yttrium , totaling 19,750 tons . The purchasing and storage price is higher than the market price, the total purchase price will be up to 60 billion yuan, payment cycle for up to 6 months.

Purchasing and storage of fat whose pockets ?

The researcher told reporters that the country should also follow the purchasing and storage of rare earth invitation to tender in the form of last year , the State selected several rare earth enterprises , invite several companies to acquire the amount and price of rare earth to bid , after the bidding companies to collect rare and self- preservation, then the way the government through cash back on purchasing and storage of goods for payment. Since the implementation of reserve side in the enterprise , leading to purchasing and storage enterprises to participate in the process of purchasing and storage revenue is very impressive.

Facts have proved that last year involved in purchasing and storage of Minmetals Rare Earth and Rare-Earth has gained a profit from purchasing and storage .

Analyst, told reporters that China Minmetals Rare 2Q11 earnings better than the first quarter, it is due to the recognition of the national reserve of cash back . The same situation also occurs in the Baotou Rare Earth body .

This year, Minmetals Rare has released "on the 2013 second batch of rare earth mandatory production plan targets Adjustment Notice " , announced that its two subsidiaries yields were from the original 835 tons and 600 tons was adjusted to 1335 tons and 800 tons. Analysis of the industry , which is probably connected with the forthcoming purchasing and storage are not unrelated.

Analysts currently provided to reporters may be involved in the business of purchasing and storage of rare earth inventory, total production capacity of 89,500 tons display Baotou Steel Rare Earth ( which LREE 79,000 tons , 10,500 tons heavy rare earth ) ; rare earth production capacity of 38,200 tons of aluminum ( which LREE 18,200 tons , 20,000 tons heavy rare earth ) ; Minmetals rare total capacity of 20,100 tons ; total production capacity of 17,000 tons of rare earth in color ( of which 7,000 tons LREE and HREE 10,000 tons ) ; colored Rising production capacity of 10,500 tons .


"State through the upstream rare earth raw materials purchasing and storage of large enterprises , leading enterprises to master distribution rights are raw materials , in the interests of the rich on the poor will inevitably split , the downstream applications enterprise only passively endure . "the analyst said.

Another industry also said that the rare earth market downturn could last 10 years because of expensive raw materials , downstream of the upstream squeeze profits , and dampen the enthusiasm of end-user applications . This is like a drastic measure , the industry sustains serious injury basis . Thus , the industry recovery no longer depends only on the industry , the need for external conditions match .

Researcher told reporters, as rare earths are purchasing and storage for domestic rare earth industry leading enterprises, purchasing and storage of the huge benefits is mainly divided among several Rare Earth Group , the survival of small businesses continue to compress , plus all aspects of national policy support , rare large group formation process is accelerating.


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