The Policy Decide the General Direction of Concern Rare Earth and Emission Reduction

Taking into account the introduction of real estate on March 1 the five countries "Conditions could dampen investor confidence, the HSBC China manufacturing PMI in February fell to a four-month low, we lowered the rating to" hold "of the nonferrous metals industry. Base metals and precious metals no significant opportunities, industry Aspect is still rare earth policy tightening is expected, as well as energy saving benefit. We recommend investors configure the sub-sectors of rare earth (Guang Sheng colored, * ST Guanlu, Baotou Steel Rare Earth, Xiamen Tungsten) and energy conservation benefit shares (the western materials, Yi balls resources, Grammy).

1.Base metals: real estate regulation affecting demand 
To replenish stocks ahead of the end of the Fed easing, and regulation of real estate concerns to China again, after the Spring Festival, basic metals downstream enterprises is not the same as in previous years, a large number of procurement but to demand the main base metals consecutive weeks crash. Taking into account the HSBC China manufacturing PMI in February fell to 4 month low on Friday introduced the five countries "Conditions could dampen investor confidence, we recommend a short-term reduction with base metals.

2.Precious Metals: The dollar index Refresh six month high 
The dollar index continued to rise, and refresh the six month highs this week, gold and silver fell by -0.25% and -0.40% respectively. Gold ETF SPDR Gold institutional investors are still underweight gold positions dropped to a seven-month low of 1,254 tons in February 28 Kusakabe. We believe that precious metals there is no obvious short-term opportunities. 

3.Small metal: looking forward to the rare earth policies favorable landing 
Maintain rare earth sub-sectors "buy" rating. Although the week this week, light rare earth oxides price fell by 1.99%, 0.36% heavy rare earth oxide prices (praseodymium, neodymium prices edged up 2%, up 5% dysprosium, lanthanum and cerium prices fell by nearly 10% and 8% ). March 5 upcoming two sessions, we believe that favorable policies may exceed expected, as detailed in the report, "the heavy rare earth undervalued, dividend policy will continue. Proposed to continue to focus on: * ST Guanlu Rising colored, Baotou Steel Rare Earth. The tungsten areas: tungsten concentrate prices rose slightly to 1,000 yuan, but the downstream products not follow up. Lithium carbonate prices steady, but Tian Qi Li Tai Lisen shareholders overwhelmingly approved benefit due to the acquisition of the Group has been. Is expected that the acquisition the Tai Lisen to thickening of the company in 2013 EPS to 0.83 yuan.

4.New materials: energy saving core benefit 
China and more fog and haze makes energy conservation a hot market, new material part of the company is expected to benefit. Including western material (titanium clad steel plate used for flue gas desulfurization); recycled metal the subject: Grammy Yi ball resources. This week the NdFeB H35 Price cost ratio fell from 0.98 to 0.96, the cost of processing enterprises to further increase the pressure.

Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com

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