Heavy And Light Rare Earth Prices May Appear Differentiation

In tumbled trend of rare earth prices throughout 2012, during the state and enterprises to take a premium Shouchu discontinued insured and other measures were not rare earth prices can significantly rising trend. According to publicly available data, in 2012 about 40% year-on-year decline in the annual average price of rare earth, close to being "cut." Dysprosium oxide and terbium oxide average market price of the more significant reduction in the price declines of 40% and 46.6%. However, the export of of lanthanide products and cerium but contrarian rose year-on-year growth of 41% and 84% respectively, the price decline is also smaller. Can be seen, the larger decline in export prices of heavy rare earth elements such as dysprosium, terbium, and the light rare earth exports impact on a smaller scale.

The still general consulting metallurgical industry analysts pointed out that the fourth quarter of 2011, so far scarce rare earth prices by illegal private mines and overseas mining heavy volume, was a the shock downward trend, but the southern ionic rare earth minerals for our unique, rich in heavy The rare earth elements, there are obvious advantages compared to overseas rare earth mine in the reserves and grade. So the next few years is expected the heavy rare earth prices will gradually rise, light rare earths by the heavy volume of overseas mines will maintain low volatility. Heavy rare earth prices rise, mainly due to the following:

First, the heavy rare earth reserves are very limited. Based on USGS data show: the world's total rare earth reserves of 110 million tons, the Chinese reserves accounted for 50% of the approximately 55 million tons, which only 3% of China's reserves of about 165 million tons of proven reserves of southern China's rare earth ionic, therefore, rare earth ionic annual output of 50,000 tons of dollars static reserve-production ratio of less than 37 years, and this the main varieties of the ore in gold. The heavy rare earth is only part of the rare earth ionic, so more scarce. According to the agency is expected in the next world, more than 80% -90% of the heavy rare earth demand will continue from China to meet.

Second, will accelerate the reduction of the heavy rare earth stocks. The main reason for the decline of heavy rare earth prices in the near future is that pre some countries, as foreseen in the heavy rare earth scarcity to import large quantities of the formation of the stock, while the economic crisis lead to downstream companies cut a short-term oversupply situation, so the heavy rare earth. As the economy rebounds, the downstream enterprises will accelerate the consumption of existing inventory of heavy rare earth new demand will rapidly increase.

Third, the Southern rare earth industry will accelerate the integration. Another reason is that the Southern small mines stealing stealing and selling heavy rare earth prices. Currently, relevant departments have formulated relevant industrial policies, to increase the punishment for the rare earth indiscriminate digging of private behavior, Southern Rare Earth resources in the province are encouraged to promote the industry consolidation. Industry consolidation is complete, the efforts to control production and prices for the heavy rare earth will be greatly enhanced.

Other hand, according to the agency expects that by 2015, lanthanum, cerium, praseodymium, neodymium and four light rare earth ore production in China of the world's total output than will decline from 94% in 2010 to 61% in 2015. Moreover, the future of the four light rare earth ore production will increase every year. This will greatly ease the contradiction between supply and demand of the light rare earths, so future prices will be difficult to improve.


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