Price recovery policies in the rare earth industry is out of the doldrums

At yesterday's meeting of the fifth "China Baotou Rare Earth Industry Forum" upload a message that China will continue to take a series of measures to promote the healthy development of rare earth industry. Rare earth prices rebound in the second half of the cases, the policy has given a positive support, rare earth industry will usher in a new opportunity for development.

Ministry Secretary Chen Yanhai raw materials, said yesterday that the first half of this year, smelting and separation of rare earth minerals and products production was 41,000 tons and 35,000 tons, plans to complete in the first half for 87% and 78%, to achieve industry profit of about 20 million. Over the past two years, China's rare earth industry management achieved positive results, but many deep-seated problems remain unresolved, illegal mining situation remains serious, with an estimated 2012 volume of rare earth minerals the country illegally have more than 40,000 tons, illegal smelting separation products There are 50,000 tons. In addition, excess capacity, a lower proportion of high-end products the problem persists, smuggling, pollution and other more serious problem in some areas.

From this point of view the company's performance during the first half of rare earth, some appalling. Minmetals Rare notice in the first half net profit dropped 95.5 percent; Xiamenwuye [-0.89% funding research report] previously announced first-half results announcement, saying that from January to June this year, attributable to shareholders of listed companies net profit of 71.1757 million yuan , down 77.69%. Affected by rare earth products continues to slump, Xiamen Tungsten Rare first half year sales price and sales volume fell sharply, leading companies affiliated Changting Jinlong Rare Earth Co., Ltd. due to operating losses and provision for inventory losses of 109 million yuan to prepare. Company said the first half of this year, the rare earth market is distorted, mainly raw materials with the product price is upside down.

Although the first half of the rare-earth prices continued to fall, but in the second half, the rare earth prices has been significantly increased. According to Orient Securities tracking data show that neodymium oxide latest price 332,500 yuan / ton, over the past month rose 29.1 percent; praseodymia 507,500 yuan per ton, nearly a month prices rose by 38.1%; ton of neodymium oxide, praseodymium price of 345,000 yuan, up 27.8 percent last month.

In the rare-earth prices rise at the same time, ushered in the rare earth industry consolidation in the industry development opportunities.

Chen Haiyan, said the coming period, China will continue to carry out special operations to combat illegal, unplanned and beyond the plan focus on combating the production, smuggling and other illegal violations against illegal enterprise, once discovered immediately ordered to stop production for rectification, and confiscated. Meanwhile, in the formation of large rare earth group speed at the same time, China will pass environmental review, environmental restoration, resource tax reform, improve industry access policy, mandatory plan to optimize production management, improve relevant laws and regulations and other measures to increase the earth behind elimination of production capacity, and further promote the industrial structure adjustment and upgrading of rare earth, rare earth industry to promote the implementation of cleaner production and healthy development.

On Wednesday, the Ministry of Public Security, the Department of Homeland eight departments jointly issued a document, the decision from 2013 August 15 to November 15 in the fight against rare earth mining, production, circulation of illegal special action.

For this special action, GF Securities analyst giant Guoxian that "implementation of the results can be expected." He said the campaign unfolded, praseodymium neodymium supply is expected to tighten significantly, because the South ionic rare earth smelting enterprises generally lanthanum, cerium, praseodymium, neodymium and other light rare earth products to take low inventory policy, there is a certain future praseodymium neodymium prices upward momentum. In the rare earth smuggling operation, the integration of large groups will enter a substantive stage, but also a positive impact on enterprises, may be concerned about Minmetals Rare Earth.

Guotai Junan Securities analyst Sang Yong Liang also believes that the metal praseodymium neodymium prices will rise 70,000 yuan / ton, the upstream companies have more than 30% gross margin. Baotou Steel Rare earth prices and sales results to the most sensitive, if the combat effect is significant, then the results will return to the Baotou Rare Earth High.



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Central overweight Rare remediation rid of local protection

Given the rampant black chain of rare earth and other reasons, such as the South separated ion ore smelting enterprises to obtain more than 70% of unknown origin, individual local governments in violation of national industrial policy, rare earth smelting and separation of rare earth projects in excess of authority, or even condone illegal rare earth production, the central government is increase the earth's remediation efforts. Reporters learned that Southern city of Ganzhou Rare Earth subordinate Anyuan County leaders have a major problem due to underlying earth was dismissed.

Southern ion ore smelting enterprises

More than 70% of unknown origin

Evening of August 7, the Ministry prominently on its website officially released eight ministries "to combat rare earth mining, production, circulation of illegal behavior special action program."

"You look at the whole program of action, a one, very specific, and if this does not work, it may also have more stringent measures introduced." Yesterday at the Fifth China Baotou Rare Earth Industry Forum, a close Ministry sources told reporters the case said.

The Chinese Rare Earth Society Secretary General Ma Rongzhang presented at the Forum this year, the rare earth industry key issues, working with the program of action outlined quite consistent priorities and requirements, including the fight against illegal exploitation of rare earth acts, acts of illegal production rectification, cleaning waste products of rare earth recycling and comprehensive utilization of enterprise, against black interests chain.

In Ma Rongzhang seems rare black chain rampant very important reason is illegal profiteering drive.

According to its introduction, the current resource tax per ton of rare earth ore north in 5000 to 14,000 yuan, the South rare earth ore resources tax per tonne from 6000 to 36,000 yuan, plus a variety of resource tax per ton of ore taxes accounted for over 50% of the sales price; while potential illegal digging of private pay any taxes you can not get the 50% of the difference, even without considering the costs of environmental protection and social responsibility.

And because rare earth mine plans and production mandatory mandatory plans do not match, also left a separation plant demand for space, resulting in illegal mining of rare earth minerals private dug have sales going. 2012 Southern Minerals total 13,400 tons mandatory plan, south separating ore smelting enterprises to obtain 33,200 tons of mandatory plans. According to the statistical analysis of the Chinese Rare Earth Society, Southern ion ore in 2012 to produce at least 3.7 million tons, it could be projected south separating ion ore smelting enterprises to obtain more than 70% of unknown origin.

In the name of recycling

Smelting and separation of the real line

"In the name of the line recycling smelting separation of the real, which is trickery, it is absolutely impermissible." China Rare Earth Association, a management staff in an interview with reporters yesterday, the case emphasized.

According to Chinese Rare Earth Society statistics, waste recycling, 2012 NdFeB waste recycling 141,700 tons, the phosphor waste recycling 23,100 tons, 21,500 tons waste polishing powder. And part of comprehensive recycling business for illegal mining activities in the country isolated NdFeB annual output of 80000 tons of waste by 30 percent from about 24,000 tons, the phosphor annual output of 5,000 tons of waste to 30% from about 1500 tons; polishing powder years production of 15,000 tons, waste no more than 10,000 tons.

"So, there is not enough supply of these rare earths waste integrated waste recycling business process, a lot of waste recycling enterprises are likely to engage in illegal ore separation, so that gave illegal mineral tremendous market." Marong Zhang said.

In the Aug. 7 release of rare special action program in one of the priorities of its work that cleanup and recycling of waste products utilization of rare earth enterprises. "This is actually concentrating on the rare special action, since the individual is difficult to check, and verification of comprehensive recycling business is easier." Close to the Ministry of the sources said.

Ganzhou Anyuan County principal leaders

Have been dismissed due to the problem of rare earth

Marong Zhang also stressed at the meeting, in the rare earth production and regulation, individual local governments in violation of national rare earth industry policy, ultra vires rare earth smelting separation project, or even condone illegal rare earth production.

"In fact this is the case in many parts of the South may be more serious." Gap in the forum, the trade association executives told reporters.

The reporter yesterday when communicating with the relevant industry insiders informed that the recent Southern city of Ganzhou Rare Earth subordinate principal leaders of the county because of a rare-earth issues were dismissed.

Reporter through a number of Ganzhou local sources confirmed that the recent Ganzhou Anyuan County because of a major leading rare earth-related issues has resigned. An Ganzhou Rare Earth Industry sources also told reporters recently Ganzhou lot of leadership problems, but whether it is caused because the earth has yet to be understood. Earlier, the central eighth inspection teams stationed at the end of May, Jiangxi Province.

Reporters in Anyuan County site inspection found that the county leaders part of the principal leaders of a column has been vacant, no relevant name, Baidu Encyclopedia about the person's tenure of Anyuan to July 4, 2013 that Hom Yet only.

Ma Rongzhang suggested that to resolutely crack down on black chain, should be rare regulations as soon as possible, a clear main responsibility to establish long-term mechanism to regulate rare earth production and management behavior. He also said that the Chinese Rare Earth Society is studying the long-term development plan of China's rare earth industry, will be completed at the end of planning.



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August 8, 2013 RE Price Quotes

Rare earth market and then a good news, the Ministry and other eight ministries and organizations to combat illegal rare earth industry special action, according to reflect the good earth could further push up prices. It is understood that the earth is more difficult to forecast future generations, ups and downs are possible.

Lanthanum oxide mainstream manufacturers tax price 27,000-29,000 yuan / ton. Cerium oxide mainstream manufacturers tax price 28,000-29,000 yuan / ton.

Praseodymium oxide mainstream manufacturers tax price 480,000-490,000 yuan / ton. Neodymium oxide 330,000-340,000 yuan / ton.

Neodymium oxide, praseodymium mainstream manufacturers tax price 335,000-345,000 yuan / ton, praseodymium neodymium metal mainstream manufacturers tax price 425,000-435,000 yuan / ton.

Europium oxide phosphor grade mainstream manufacturers tax price 4,600-4,800 yuan / kg. Terbium oxide phosphor grade mainstream manufacturers tax price 4,000-4,200 yuan / kg.

Dysprosium oxide mainstream manufacturers tax price 210-230 yuan / ton, dysprosium iron mainstream manufacturers tax price 210-230 yuan / ton.



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Norms to prevent monopoly of rare earth industry

Improve the rare earth industry, industry concentration, and only in a fair and reasonable competition in the market resulting concentration of the rare earth industry in order to improve labor productivity in order to make China's rare earth industry reasonably healthy and sustainable development.

According to the State Ministry website Wednesday announced that the Ministry of Public Security, Ministry of Land Resources, Ministry of Environmental Protection, General Administration of Customs, State Administration of Taxation, the State Administration of Production Safety Supervision and Administration for Industry and other eight ministries jointly issued a document, will be closed from 2013 on 15 August to 15 November, a nationwide campaign against rare earth mining, production, circulation of illegal special action. After the news broke, rare earth permanent magnet stocks collective rose.

Read more: Norms to prevent monopoly of rare earth industry

Rare Earth Society: completed before the end of rare earth industry development plan

August 8, China Rare Earth Association Secretary-General Ma Rongzhang at the 8th meeting of the Fifth China Baotou Rare Earth Industry Forum, said that the preparation of rare earth industry is currently being studied and long-term development plan, the Association will be completed before the end of 2013 planning.


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