State Reserve Bureau and a number of companies signed agreements RE Shouchu

Rare earth industry continued to slump, the rumors about the stock market seems to be purchasing and storage of a stimulant to revitalize the market.

Recently, the news from the industry, said the State Reserve Bureau has with China Aluminum Industry, China Minmetals, Ganzhou Rare Earth, Xiamen Tungsten and Rare Earth Rising colored purchasing and storage agreement was signed. Insiders also said that the signing of the agreement means that the purchasing and storage of rare earth has been officially finalized, but has not yet issued an official document, related businesses do not want to disclose details.

A rare earth industry investment in charge of purchasing and storage of rare earth acceptance did not disclose further details of the 21st Century Business Herald reporter to interview, but said that at present, the Ministry is stepping up research to advance the detailed program of domestic rare earth industry as a whole and healthy development.

"Competent authorities in the coming year will certainly be playing a combination of boxing, the country's current problems encountered in the development of rare earth industry as a whole is not simply rely on to stimulate purchasing and storage can be solved, even if the implementation of a new round of purchasing and storage, the role of the market is also very limited, the key will have to see the follow-up as well as what specific initiatives. "The investment in the rare earth industry sources said on 21st Century Business Herald reporter.

It is worth noting that a large group of rare earth strategy is also accelerating. December 9, Rising colored announcement that the company has received notice of Rare Earth Industry Group Co., Ltd., a wholly owned subsidiary of the controlling shareholder of Guangdong Province, Guangdong Provincial Economic and Information Technology Commission reported "Guangdong Provincial Economic and Information Technology Committee of the Guangdong rare Earth industry Group Co., Ltd. established the fact that the program filing instructions "has received the reply of the Ministry of Industry. This also means that the Ministry had planned "5 + 1" Six Adds Rare Earth Group is also a member of the camp, at present, leaving only Ganzhou Rare Earth has not yet been approved by the Ministry of Industry.

But then within two industry sources report to the 21st century economy, told reporters, Ganzhou Rare Earth preparatory programs already reported, "This month also should get a reply."

Continuous Shouchu stimulate the market

Even if the State Reserve Bureau has not yet released an official document of purchasing and storage of rare earth, but the market has shown a high Shouchu enthusiasm. Insiders said, after the previous round of purchasing and storage, the current spot market tensions, a new round of purchasing and storage will also promote a more substantial rise in the price of rare earth. During 2014, according purchasing and storage of rare earth sector performance is expected, within two weeks of the rare earth sector leading gains in this period reached 30%.

"The market in the expectation of purchasing and storage is mainly due to the purchasing and storage of this year with the 2013 index, therefore, based on the current situation of the industry, we also believe that there is still this year to continue purchasing and storage space." Merchants Securities RE Peng Bo, chief industry analyst, told the 21st Century Business Herald reporter.

In August this year, start purchasing and storage of rare earth, according to the plan of the State Reserve Bureau, and its total purchasing and storage of 10,000 tons, which plans Shouchu neodymium oxide, praseodymium 4000 tons, 1200 tons dysprosium oxide, praseodymium, neodymium oxide, 500 tons each, etc. this number of purchasing and storage basically in line with market expectations.

Price-wise, this year neodymium praseodymium oxide reserve price is about 311,800 yuan / ton, compared with the market price go up to about 1800 yuan / ton; dysprosium oxide reserve price higher than the market price to rise by about 10%, other varieties are generally higher than the market price.

As for the new round of purchasing and storage plan, Ding Qi Shun Securities researcher said that the current tariff temporary retention, increased purchasing and storage of rare earth policy is actually a combination of regulatory changes in the transition to, "WTO losing makes rare earth export tariffs, quotas faced canceled in the past as a precondition to the export control policy mix is no longer applicable, must shift to resource tax as the core of the policy mix. However, due to the large group to promote the integration of rare earth, hitting resistance is large, the current rare earth resources tax increase heat yet to come. "

Meanwhile, Qi Ding also said that in addition to the main approach transition policies pushed through massive purchasing and storage of rare earth prices, continue to accelerate the integration of a large group of rare earths, as well as enhanced hitting and accelerate the development of "rare Regulations" of multiple initiatives carry out.

21st Century Business Herald reporter learned that 15 to 20 December, the Ministry of Land Department jointly, environmental protection, the State Administration of Taxation, Customs Department and other major ministries went to Hunan, were rare special rectification inspection, and focus on examination, including Changsha City effective rare Earth Chemical Co., Ltd., including eight companies.

"RE sector is currently in the fundamentals and stock stagflation bottom end, both for the rare earth industry restructuring needed to rectify, it is the ruling force performance, rare earth is expected to achieve bottom reversal in 2015, both from the industry structure is still rare prices will enter a new stage of development. "China Merchants Securities report said.

Market consolidation is the key

When regulators pronged domestic rare earth industry consolidation, when several rare earth companies who accept 21st Century Business Herald reporter, have said the current price of domestic rare earth resources severely undervalued, major ministries industry through efforts to clear bottlenecks on the occasion, effectively effectively combat the "black rare earth" is undoubtedly the key move to solve the dilemma of the industry.

"Black RE Trading has never been able to eradicate, which impact on the informal market businesses, the impact on the industry is very large, the lack of effective protection of the resource itself, other supporting consolidation measures are also palliatives." Baotou Rare Earth, a private company official said on 21st Century Business Herald reporter.

According to the reporter, "black" RE margins there are two main aspects, one in the rare earth mineral resources than the regular tax underpaid about 25,000 -3.2 yuan / ton, on the other hand is in the mining process, hardly any environmental costs. This makes the rare earth industry in recent years, a grasp on the price, but then relapse into illegal mining of chaos, the cycle of lower prices.

In fact, due to profit-driven, over the years, even if the special rectification action coalition of major ministries frequently Sword, but in Jiangxi, Inner Mongolia and other major domestic rare earth resources concentrated area, "black" rare earth companies still can not stop. And for the resurgence of gray transaction chain, from eight ministries and the formation of the Joint Action Group has also developed a program of unprecedented blow.

In October this year, the Ministry issued "on the fight against organized illegal acts rare special action letter" clearly October 10, 2014 to 2015 March 31 calendar months of action to combat illegal rare in the country since. Insiders said that the Ministry crackdown has led the market immediate, and as continuing to promote the "anti" action, coupled with a number of policies supporting the implementation, "the next year, the domestic rare earth market should have a significant rebound . "

"Rare Earth" hitting "has become China's rare earth industry Vital lies, while the rare ability to stabilize prices rise, it is a rare test" hitting "the success or failure of a standard." Ministry Director of Engineering and Raw Materials Division Shi Yaojiang said.


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