Three factors caused by weak rare earth industry

According to data recently disclosed Hohhot Customs , in 2013 , the export volume of rare earth Hohhot Customs is 5065 tons , up from 2012 , but exports fell by 50 %. Rare earth export quotas in the country , Inner Mongolia Rare Earth companies can get 25 %. Therefore , the increase in volume and a drop in price Inner Mongolia Rare Earth exports , reflecting the 2013 development of rare earth industry weakness .

Since the third quarter of 2011 , Inner Mongolia 's rare earth industry as a whole showed a downward direction, specific performance prices, shrinking exports . Price Monitoring Baotou City Economic and Information Technology Commission show that in July 2012 , the price of Baotou Rare Earth Carbonate of 68,000 yuan / ton, compared with the high point in July 2011 fell by 23,000 yuan / ton, July 2013 fell to 27,000 yuan / ton ; since November 2013 , called " rare earth market benchmark" neodymium oxide price to 32 yuan, down 11 yuan / ton than July 2012 .

The market continues to decline enormous difficulties for business . It is understood that , at present, about 70 percent of Baotou NdFeB idle capacity , a serious shortage of production started smelting and separation enterprises. Despite the support of government purchasing and storage , but operating income Baotou Steel Rare Earth ( parent company ) 2013 first three quarters of 2012 dropped 50% over the same period , profits shrink 2.3 billion. Rare earth export performance is weak . 2012 , the actual number of Baotou rare earth export is 4,086 tons , only completed 50% of export quotas . 2013 , export quotas Baotou region remains surplus .

Analysis of the reasons for the weak rare earth industry , the industry believes that mainly affected by the following three factors.

First, by the impact of the black earth industry chain. In a rare earth industry conference, Secretary-General of China Rare Earth Industry Association Mayon peaks have been disclosed , it is estimated that the industry beyond the plan , unplanned rare earth production accounted for 50 % of total sales . Illegal production enterprises rely on illegal mining digging steal to get raw materials in the production process, but also to escape the regulatory environment , coupled with the sale of non-payment of taxes to rely on smuggling , the production cost is very low. Black earth industry chain to make regular product sales are sluggish , increasing the regular production difficulties and market malaise .

Secondly, the conflict intensified demand and production capacity of the weak market . The past two years , the world economic recovery is slow , demand for rare earths slowdown , the U.S., Japan , the European Union and other major importing countries continued to decrease rare earth rare earth imports. Meanwhile, after the third quarter of 2011 , the domestic rare earth sharp price increases , cost pressures forced some low-end application of rare earth out of the market . In 2012, global demand for rare earths market less than 10 tons, although in 2013 there has been a slight increase , but the increase is far from digestion of rare earth production capacity, estimated annual consumption does not exceed 20 tons. It is estimated that China's rare earth smelting and separation capacity of 320,000 tons , existing and under construction production capacity of 400,000 tons of NdFeB .

Thirdly , technological advances weaken the strength of rare earth consumption . With prices soaring in recent years, rare earth , rare earth enterprises have applied through technological innovation , or reduce the amount of rare earths , or looking for alternatives. On the rare earths market seminar held in November 2013 , insiders pointed out that , at present, is to light rare earth permanent magnet device development , although rare devices increased demand , but the demand for total rare but not synchronized growth even decreased. Rare earth permanent magnet materials are the most important areas of consumption of rare earth , which reduce the amount of rare earth , to bring pressure on the market is huge. In addition , thanks to technological advances , LED lights has replaced the trend of rare earth energy-saving lamps . LED lights are much less rare than the required three-color light , which makes the global demand for rare earth phosphors declined significantly.


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