Three Rare Earth Giants Resume Production
- Details
- Category: Rare Earth News
- Published on Friday, 08 March 2013 10:18
The stop of production for protecting the price seems fails to achieve the desired results, for the rare earth prices remain sluggish. Under the pressure of the production, the three rare earth giant, including Baotou Steel Rare Earth, Minmetals and Chinalco Rare Earth, resume the production after nearly four months' production halts.
With the coming of the traditional rush season of rare earth consumption in March and April, the downstream application providers are expected to launch a new round of supplementing inventory, and there's a common wish of rises in rare earth prices among industries.
Enterprises gradually resume production
According to the reporters learning from Baotou Steel Rare Earth, the range of the corprorations resuming production covers the smelter directly under Baotou Steel Rare Earth, Huamei Corp., Hefa Corp.,Ganoderma company as well as the Quannan Jinhuan Corp. and Xinfeng Xinli smelting separation plant. Also, Minmetals Rare Earth and Chinalco resumed production after the Spring Festival as well.
"Generally speaking, there comes the traditional peak season of consumption of rare earth in March and April. In terms of corporations, several companies halted for a long time. Therefore, the resumption of production sounds reasonable to come along with the rush season at present," said an analyst, "however, from the current point of view, the downstream demand is not active."
Constrained by excess production capacity and sluggish downstreams demand, the price of rare earth in 2012 experienced a sharp decline in the stock market. For example, the offer of praseodymium nedymium oxide was 760.000 at the beginning of 2012, while it has dropped to 400.000 by the end of last year.
Under the pressure of price, Baotou Steel Rare Earth was the first to announce halts. Subsequently, the other two rare earth giant, Minmetals Rare Earth and Chinalco Corp. annnounced as well. Despite these giants,
some small and medium-sized enterprises have also joined in it, such as some small companies doing with rare earth smelting separation and magnetic materials.
Looking forward to a bottom price of rare earth
However, the strategy of protecting the price by halting production did not reach a desirable result. For instance, the price of praseodymium nedymium oxide only realized a rise of 10% in a short term of the shutdown and sank down later. Now its price is just around 350.000.
As it is analized, there're two main reasons for its low effection. One is the diversity of the sales channels, which led to a gap between the price of formal-produced and illegal-produced rare earth. the other reason is that downstream demand is indeed the doldrums and the overseas supply began to increase.
According to media reports, the U.S. energy company Molycorp and Australia's Lynas Mining Corporation's Mount Weld mine were to start second mining. These two companies were expected to achieve an annual output of rare earth of about 40,000 tons, which will have a direct impact on the export of China's rare earth industry.
As far as we understand, there're still some small rare earth separating enterprises which do not resume production until now, and their downstream demand remains slowdown. Presently, with the coming of the rush season, whether the rare earth price will bottom up depends on the demands of the downstreams.
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
According to the reporters learning from Baotou Steel Rare Earth, the range of the corprorations resuming production covers the smelter directly under Baotou Steel Rare Earth, Huamei Corp., Hefa Corp.,Ganoderma company as well as the Quannan Jinhuan Corp. and Xinfeng Xinli smelting separation plant. Also, Minmetals Rare Earth and Chinalco resumed production after the Spring Festival as well.
"Generally speaking, there comes the traditional peak season of consumption of rare earth in March and April. In terms of corporations, several companies halted for a long time. Therefore, the resumption of production sounds reasonable to come along with the rush season at present," said an analyst, "however, from the current point of view, the downstream demand is not active."
Constrained by excess production capacity and sluggish downstreams demand, the price of rare earth in 2012 experienced a sharp decline in the stock market. For example, the offer of praseodymium nedymium oxide was 760.000 at the beginning of 2012, while it has dropped to 400.000 by the end of last year.
Under the pressure of price, Baotou Steel Rare Earth was the first to announce halts. Subsequently, the other two rare earth giant, Minmetals Rare Earth and Chinalco Corp. annnounced as well. Despite these giants,
some small and medium-sized enterprises have also joined in it, such as some small companies doing with rare earth smelting separation and magnetic materials.
Looking forward to a bottom price of rare earth
However, the strategy of protecting the price by halting production did not reach a desirable result. For instance, the price of praseodymium nedymium oxide only realized a rise of 10% in a short term of the shutdown and sank down later. Now its price is just around 350.000.
As it is analized, there're two main reasons for its low effection. One is the diversity of the sales channels, which led to a gap between the price of formal-produced and illegal-produced rare earth. the other reason is that downstream demand is indeed the doldrums and the overseas supply began to increase.
According to media reports, the U.S. energy company Molycorp and Australia's Lynas Mining Corporation's Mount Weld mine were to start second mining. These two companies were expected to achieve an annual output of rare earth of about 40,000 tons, which will have a direct impact on the export of China's rare earth industry.
As far as we understand, there're still some small rare earth separating enterprises which do not resume production until now, and their downstream demand remains slowdown. Presently, with the coming of the rush season, whether the rare earth price will bottom up depends on the demands of the downstreams.
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
sales@chinatungsten.com
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