Following the launch of the coking coal futures, the voice of the industry on the introduction of rare earth futures trading is getting high. Analysts said it may be difficult to meet the requirement of the futures contract for Standardization, due to its various classification of rare earth products.

It is understood that, as a rare resource, our reserves of rare earths accounted for about 23% of the world's total reserves. After years of efforts, China has become the world's largest country of rare earth production, application and export. Nevertheless, China's rare earth enterprises still don't have the pricing power in negotiations with foreign buyers.

In recent years, with the increasing intensity of the rare earth mining of foreign countries, which reduce their dependence on China's rare earth export to some extent, the domestic rare earth prices immediately plunged into a decline. According to the data released, the annual average price of rare earth in China fell by about 40% in 2012, which closed to being "cut", and the average market price of dysprosium oxide and terbium oxide suffered declines of 40% and 46.6% respectively.

                  

What deserves our attention is that the decline of domestic rare earth price is difficult to stop. Analyzing from an official statistics from Baotou city, we learn that the domestic price of some rare earth products will still falling.

In view of this, after four months' halts of production, China's largest rare earth producer - Baotou Steel Rare Earth recover its production. Following it are two other great producer of rare earth, who resumed their production also. Even though, most of other producers are still on the sidelines.

With the gradual resumption of production of rare earth producers, the strategic pruchase and storage occurs to producers again. Recentlly, Yan Chunhua, the deputies to the National People's Congress, suggested that our country should do purchase and storage on rare earth industries with reasonable price on the basis of mining demand.

In fact, as early as in 2011, when the prices of rare earth suffered from sudden rises and drops, producers had already put forward the function of rare earth futures to maintain the stability of rare earth market.

Even so, analysts still have some doubts on the launch of rare earth futures.


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Rare earth price continue to decline after a spurt in price in 2011, in the application areas of rare earth situation is too, getting worse.  

“ rare earth is now not rare actually”, Li Ruijun of China Land and Resources Economy Research Institute, he told the reporter, saying :“the supply and demand of rare earth may get out of balance in the future.” Many experts in rare earth industry expressed the same worry as Li.

It is worth noting that, Yan Chunhua a NPC delegate suggested to accelerate the construction of rare earth futures transaction platform, when being interviewed by presses.

Surplus is a matter that can not be ignored. According to an official data in Baotou City, prices for some parts of rare earth products keep falling in February, among which, rare earth carbonate average price is 3.2 yuan/ton, down 600 year-on-year.

Vice president Wang Zhongshan of Nanjing Rare Earth Research Institution said that many rare earth manufacturers failed to come into operation, light rare earth products suffered heavy stockpiles.
“Because of the fluctuations of rare earth market price last year, many downstream companies have begun seeking for substitutes, thus reducing the demand for rare earth.” Said Gao Yuxin an industry analyst of Ruixin Metals Network.

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2011 experienced skyrocketing rare earth prices in the short-lived after a series of crash to record lows, and application of rare earths market also continued downturn and shrinking.
    
"At present, the rare earth is not rare." Yesterday (March 14), the Chinese Academy of Land and Resource Economics, said Dr. Li Ruijun future global rare earth supply and demand imbalances in. Yesterday, China's rare earth seminar sponsored in metal mesh Shui Road 2012 (third) a number of rare earth industry veteran for the plight of rare earth overcapacity issue of deep concern. It is worth noting that, in this year's "two sessions", the National People's Congress, when interviewed by the media, the Chinese Academy of Sciences, Yan Chunhua recommended the establishment of a rare earth futures platform.
    
Excess, in the rare earth industry has become a topic can not be ignored. According to a statistics official from Baotou City, in February, the domestic part of the rare earth product prices continue to fall. Among them, the average price of rare earth carbonate 32,000 yuan / ton, the chain fell 600 yuan / ton, down 37,000 yuan / ton; cerium oxide average price of 49,000 yuan / ton, unchanged, down 54,300 yuan / ton; lanthanum metal The average price of 85,000 yuan / ton, a decrease of 400 yuan / ton, down 40,000 yuan / ton.
    
WANG Zhong Shan, vice chairman of the Nanjing Research on Rare Earth, said at the meeting, many rare earth production enterprises underemployment, many products on the market has no market value, especially in light rare earth backlog more serious. "Due to the impact of 2011 rare earth prices spike, many downstream applications enterprises start looking for alternatives, and also to reduce the actual demand for rare earth." GAO Yu Xin, Shui Road metal mesh rare earth industry analyst, said the past two months to see, this year, the rare earth market is still not optimistic, 2013 RE market is still facing a lot of problems, must crack down on smuggling, private mining digging wrongdoing, strict enforcement of environmental standards.

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Texas Rare Earth Resources Corp. , a heavy rare earths exploration company, today announced that on March 8, 2013 the Company completed its purchase of the surface lease at the Round Top project, known as the West Lease, from the Southwest Wildlife and Range Foundation (SWWRF) for $500,000 cash and 1,063,830 shares of restricted TRER common stock. TRER has also agreed to support the SWWRF through an annual payment of $45,000 for ten years to support conservation efforts within the Rio Grande Basin and in particular engaging in stewardship of Lake Amistad, a large and well-known fishing lake near Del Rio, Texas.

The West Lease comprises approximately 54,990 acres and is fully paid until 2028, thereby having a lease value of approximately $293,000. Most importantly, purchase of the surface lease gives TRER unrestricted surface access for the potential development and mining of its Round Top project.

                  

Dan Gorski, Chief Executive Officer, stated, “We are pleased to welcome the Southwest Wildlife and Range Foundation to the Texas Rare Earth team as shareholders and supporters of our project. Having complete and unfettered access to the deposit and to the adjacent lands necessary for all mine infrastructure is an important milestone in the development of this deposit and underscores the confidence we have in the economic viability of our Round Top project. Funding for this lease purchase is within our current budgetary guidelines and we believe adds significant long-term value.”

Susan Potts, Director and Secretary of the Southwest Wildlife and Range Foundation, stated “TRER is a good neighbor and steward of the natural resources in Sierra Blanca, and Southwest Range and Wildlife Foundation is pleased to be a part of the company going forward. We look forward to a long relationship with TRER in their continued efforts in total resource management of one of Texas’ crown jewel ranches and mineral deposits.”


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