Since August 7th day laborers Ministry's official website announced the next phase will be conducted nationwide Rare "hitting" the news, China's rare earth stocks share price once again usher rose to the north of rare earth enterprises Baotou Steel Rare Earth, for example, from August 8, after the opening, the company stock for several days rose, 8 August the company opened at 25.6 yuan / share, as of Aug. 12 closing, the company's share price was 29.57 yuan / share, only three trading days, shares rose 15.51 percent.

Although the share price rose, but so far, China's rare earth prices are still in an adjustment phase, while the rare earth prices are around by the upstream enterprises, these include the Baotou Rare Earth. But in recent years, Baotou Steel Rare earth prices have made to protect things, but now I must mention as its "awkward" thing.

Stop insured did not bear fruit

July 1, 2013 evening, Baotou Steel Rare Earth issued a "dilute selected plant shutdown announcement."

Announcement shows that the thin-election plant shutdown is to tie clad (Group) Corporation oxide ore mountains (ie, oxidized ore beneficiation overall migration to the Bayan Obo mine) project implementation, good company overall move to dilute the mill related Baiyun'ebo preparatory work, the company decided to start from 1 July, under the thin election plant shutdown half a year.

In addition, the Baotou Rare Earth's announcement that dilute processing plant was halted, the company smelting separation and functional materials can be used such as downstream industries in recent years, the company reserves the normal production of rare earth concentrates, will not affect the company's downstream industries, not affect the company's annual results goals.

While last year because the industry downturn, Baotou Steel Rare Earth three times Published discontinued insured announcements, other industry leaders Minmetals, Chinalco and Xiamen Tungsten (32.14,1.22,3.95%) followed subsequently discontinued. Discontinued insured in the whole industry a month later, some rare earth stock market appears broad and representative species of rare earth oxide, praseodymium neodymium prices rose 20 percent per ton reached 450,000. But after a brief rise, prices will fall. Eventually, in 2012 Rare annual average price fell by about 40%.

For the year, prices of rare earth movements, have declined to be named, analysts said, although rare earth prices bullish, but from the demand point of view, has not been a significant increase in the second half of market uncertainty, if the September, October do not wang so, Baotou Steel Rare Earth may have to "cut price" it.

Integrated enterprise will take time

In addition to the basic discontinued insured plans, "fall", but since the end of 2012, with 12 of Inner Mongolia Baotou Steel Rare-earth enterprise integration upstream substantive progress yet, is still in a kind of "delegated management" of the state.

May 4, 2011, Inner Mongolia introduced the "rare earth upstream enterprise integration phase work program", the local 35 companies will be mergers and acquisitions, compensation off, out of shutting down. By the end of 2012, Baotou Steel Rare Earth with one of the 12 companies signed restructuring framework agreement. In the end of 2013 have been rare forum, Baotou Steel Rare Earth, general manager Zhang said in an interview, said that 12 to be "incorporated" into the Group's business has not been substantive consolidation, is still in the early stages of integration, because " assessment do account ", etc.

"According to the Framework Agreement, the reorganization of the 12 companies and their shareholders must agree to the Baotou Rare Earth free transfer 51% stake in enterprises, consistent with the Baotou Rare Earth Development Plan and to achieve compliance with national environmental standards. Baotou Steel Rare Earth in human , technology, capital, rare earth resources, mandatory production plan targets and export quotas to give 12 corporate support. "Zhang in the rare earth forum said.

In addition, a number of insiders pointed out that the Baotou Rare Earth integration 12 companies real difficulty lies in the smelting and separation indicator is not enough. Be integrated with a home business, for example, concentrates before 1000 tons monthly subsistence, and now can only get five million tons Baotou Rare Earth Concentrate targets. Above estimates, 14 separate business capacity equivalent to a minimum of approximately 80,000 tons oxide calculation, but only 35,000 tons Baotou Steel Rare Earth Separation smelting targets.

Currently 12 companies are not included in the staffing and financial Baotou Steel Rare Earth unified management, namely in the "food" in the case financing. "Only smelting separation part, this is more of a delegated administration." The person said.

Exchange has not issued rules

In addition to the two "awkward" thing, but now, the concern is still rare exchanges to set up the past year, trading rules yet to be released.

In rare forum, Baotou Rare Earth Products Exchange Gu Ming, general manager, said in an interview with reporters, will dysprosium, terbium, europium and other rare earth as a variety of transactions, "the three is OK", but even when launched according to market conditions. These varieties have the characteristics of the larger price fluctuations, while lanthanum and cerium year price changes is small.

Data, from early June to late July dysprosium gains more fierce, from 1.1 million yuan / ton up to 2.5 million yuan / ton. Prior to this, the price of dysprosium oxide also rose fell.

Gu Ming said the goal is to exchange hedging direction towards the future may also be in the South and other places to set up storage base. For the future how to deal with the competitive aspects of Ganzhou, Gu Ming said the exchange is actually doing service work, "serving well, we will come to you like the deal."

According to information, participation in exchanges organized 12 shareholder business capacity accounting for the earth more than 80%. However, Ganzhou Rare Earth Group official website of the information, the company mastered more than 60% of the ionic rare earth quotas of production and supply of rare earth oxides, rare earth ranked first in the South. And Ganzhou Rare Earth Group is not a shareholder of Baotou Rare Earth Exchange. Moreover, in the last year, August 8 after the establishment of the Baotou Rare Earth Products Exchange, Jiangxi Province also established at the end of Ganzhou, Jiangxi Rare Metals Exchange.


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