It is a good period for the depressing rare earth industry to conduct industrial upgrading officially. Ministry of Finance, Ministry of Industry and Information Technology have jointly issued the "Special Funds Management for Rare Earth Industry Upgrade", which will support "R&D of Technology and Standards", "R&D of Technical Application and Industrialization", "Development of Technical Platform". The measures have incorporated a number of subsidy financing and capital injection to support the rare earth technology development and industrialization.

The special funds will be utilized for the following five perspectives: Rare Earth Resource Extraction Supervision; Rare Earth Mining, Smelting Environmental Technological Innovation; R&D of Rare Earth Key Technologies and Standards; Technology Development and Industrialization of High-end Applications of Rare Earth; Construction of Public Technical Services Platform.


Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
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China’s largest rare earths producer, Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-Tech Co Ltd.(Baotou Steel Rare-Earth), saw a year-on-year decline of 56.58 percent in net profit last year. Moreover, Baotou Steel Rare-Earth plans to achieve 2013 with annual sales revenue totaled RMB 7.5 billion Yuan, down 18.85% compared to 2012, according to the company’s 2012 annual report released on Friday, March 29, 2013.
 
The company’s net profits amounted to RMB 1.51 billion Yuan, while operating revenue decreased 19.83 percent year on year to RMB 9.242 billion Yuan in 2012, earnings per share came in at 0.624 Yuan, in 2011, its net profits reached RMB 3.48 billion Yuan as well as per share reached 2.87 Yuan in 2011, according to its annual report filed with the Shanghai Stock Exchange.
 
“Rare earth market still remains in the doldrums in 2012, the rapidly falling prices of its rare earth-related products and a sharp drop in demand led to the profit and revenue declines. Moreover, the costs of raw materials have increased over the last year, which have increased production costs and push profit margins down”, the company explained.

                  
 
In fact, the company said that it earned a net profit of RMB 1.689 billion Yuan in the first nine months of last fiscal year, which means Baotou Steel Rare-Earth where as it recorded a net profit loss of RMB 1.79 billion Yuan during the fourth quarter due to the company had suspended rare earth production since October 23, 2012.
 
In addition, the annual report also noted that, under the central government’s plan, only one rare earth upstream enterprise was to be permitted in Baotou. Baotou Steel Rare-Earth has signed an integration agreement with 12 other rare earth producers in the region last year. The company plans to speed up its rare earth monopolization in the Inner Mongolia autonomous region. Moreover, will continue to strengthen communication with Sichuan, Shandong, Gansu (Province), promoting to set up the “China Northern Rare Earth Group”, while led to the creation of the industry’s first ever “mega-company” this year.
 
At present, almost all China’s enterprises are facing the problem of insufficient demand; the relatively sluggish domestic and overseas consumption market has slowed down the demand for rare earth oxides from the electronics, automobile and other industries. Moreover, the contracted demand from Japan and the US, the world’s second and third largest rare earth consumers respectively also will directly hit the domestic rare earth enterprises. Therefore, expects that the external environment will continue to affect the downstream demand for rare earths as well as the price of rare earth oxides will not make substantial improvement in the short term.”


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According to the website of the Environmental Protection Office, 80 rare earth producers in China meet environmental protection requirements, and passed inspections by the Environmental Protection Office. 5 of them are located in Baotou.

These five enterprises include Baotou Xinyuan Rare Earth Hi-Tech and New Material Company, Baotou Luodiya Rare Earth Company, Baotou Tianjiao Seimi Polishing Powder Company, Baotou Rewin Rare Earth Metal Materials Company and Baotou Santoku Battery Company.

After the inspections, environmental protection equipment standard and management ability of enterprises will improve.


Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
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China’s rare earth export primary materials increased by 289.12 percent in February, to 1,106 metric tons (MT), compared with the same month in 2012; prices continue to drop month-on-month.

An industry analyst told Metal-Pages that China’s exports of rare earths increased sharply in February because the country exported only 284 MT in the same period last year and was assisted when prices continued to fall throughout the month, which in turn encouraged buyers to restock.

The average price for rare earths in February was $22,650 per MT, down 11.32 percent compared with $25,540 per MT in January.

“Exports increased due to low prices. Many consumers will restock before March when sales are stronger. In addition, many consumers restarted production after the Chinese New Year in February,” the analyst added.

                  

China’s rare earth prices have continued to weaken, with little business reported on the spot market and producers unwilling to sell product at lower prices due to high production costs. Prices for light rare earths and some heavies, such as dysprosium and gadolinium are unchanged, while prices for rare earths of fluorescent powder, such as europium, terbium and yttrium, have edged down slightly.

Reports from Metal-Pages note that market participants remain bearish on the future of rare earths and are expecting prices to decline in the short term, with supply outweighing limited demand from downstream industries.

Traders confirmed that 99-percent praseodymium-neodymium metal is being offered at $61,984 per MT, while the Chinese 99-percent praseodymium oxide market remains quiet due to weak demand. Current prices for dysprosium oxide 99 percent are unchanged at $322 per kilogram, while prices for ferrodysprosium are still at $338 per kilogram, according to Metal-Pages.

China’s terbium oxide market has been described as flat with sporadic trading in the spot market. Industry sources state prices are likely to fall slightly in the near term given lackluster demand from the downstream fluorescent powder industry. Current prices for terbium oxide 99 percent are at $603 per kilogram.

The 99-percent cerium oxide market is sluggish due to weak demand, with most suppliers putting 99-percent cerium oxide prices at $5,956 per MT.


Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
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Email: sales@chinatungsten.com
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