Magnets rare earth smelting processing volume reduction drop unprofitable

From raw material prices, the first half average price of neodymium oxide, praseodymium 301,000 / ton, down 29%, a decline of 12% dysprosium oxide 1847.4 yuan / kg, down 63 percent, a decline of 45%. Press N50 prices, the average price of 221.8 yuan in the first half Magnets / kg, down 29 percent, a decline of 14%. Based on projections, we estimate unpublished results notice other results are as follows: Baotou Steel Rare Earth, net profit fell more than 80%; Rising colored, half loss; Ningbo Yunsheng, net profit fell 50%.

Rare earth prices stabilize reason. In mid-June after a slight rebound in rare earth prices stabilize and, peers generally considered rare earth prices bottoming out of the industry pose a greater good, and the secondary market has recently experienced a wave bigger bounce. We recognize the conclusions of rare earth prices bottomed out, however, whether the industry constitutes a positive, we need to find the cause of rare earth prices rebound. Processing enterprises from the first half performance magnetics situation speculated that in the first half sales fell Magnets 10% -30%, up 20% -40%, overall still in the doldrums, can not support the upstream supply of rare earth market remains current for more than demand situation. Contrast upstream company profits, we can see that the first half of 2012 Rising colored Baotou Steel Rare Earth and sales gross profit margin was 48.75% and 14.76%, sales margin was 29.26% and 1.63%, while the first half of 2013 light rare average price fell 29 percent, the heavy rare earth price fell 63%, rare earth smelting enterprises in the profit or loss for the state, which we can conclude: Rare earth prices bottoming out from the cost of support.

As rare earth smelting enterprises already in the low-profit status, rare earth prices will support the acquisition costs, it is difficult to continue to decline, but the state of oversupply in the rare earth, rare earth prices rebound height is limited. Next longer period of time, rare earth smelting enterprises will go to production capacity in the state, is difficult to improve performance. Magnets same excess capacity, rare earth prices continue to decline no longer the case, we believe that high-margin hard magnetics processing enterprises long, strong bargaining power will gradually degenerate.



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National Rare Earth Catalyst Conference held in Lanzhou

July 17th, 19th National Conference of rare earth catalytic held in Lanzhou. During the meeting, exhibition, including "New Rare Earth Catalytic Materials Preparation and Characterization", "rare earth catalytic reaction mechanism", "rare earth catalytic and environmental protection", "rare earth catalytic petroleum fine chemical", "rare earth catalytic and new energy," etc. latest results and progress.

Catalyzed by the Chinese Society of Rare Earths commissioned the meeting by the Chinese Academy of Sciences, Lanzhou Institute of Chemical Physics Oxo Synthesis and Selective Oxidation State Key Laboratory for contractors. The experts will discuss the rare earth catalytic facing opportunities, challenges and direction of development, is committed to promoting communication between academia and industry in order to promote China's rare earth catalytic technology development and related fields.



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Rare earth prices stabilized stabilized markedly remediation

With Ganzhou region to combat the "black earth" action in depth, rare earth prices gradually stabilized stabilized in recent days, rare earth prices rose across the board, especially in the heavy rare earth prices rose nearly 20%. The industry believes that rare earth prices or maintained at a higher position, but subject to the constraints of the downstream demand cool, rare earth prices continue to rise or difficult to get out of the stock market.

Public information display, in mid-June, is considered to be rare in Luancai cause worsening water pollution Xunwu County in Jiangxi Province, the public security departments launched a massive campaign illegal mining report. Number of business-related persons have been arrested on suspicion of illegal operation, illegal enterprises were ordered to stop.

Recently, rare earth prices began to rise gradually. On the one hand, the relevant departments to combat rare earth mine makes a lot of private private mining enterprises were shut down, the market is relatively small earth; among traders on the other hand is a lot of opportunity sellers, driving up the price of rare earth.

Heavy rare earth prices also led to the rise in the northern light rare earth oxide, praseodymium neodymium quoted in the beginning of June this year, 240,000 yuan per ton, the current market price of 29 million yuan, or more than 10%.

Rare earth prices in 2011 reached the most boom, then prices tumbled all the way, the price of each variety has fallen by almost two-thirds. Neodymium oxide, praseodymium prices from a high of 1.4 million yuan per ton all the way down to 24 million.

According to reports, despite the corporate inventory of rare earth materials is very low, but not very strong willingness restocking general orders are received, they go to buy rare earth materials.

See now is that rare earth prices rise, but the price is still relatively rare earth ore stable, indicating that rare earth prices rose more reason Ganzhou Rare Earth After the renovation, the short term market supply shortage caused by the downstream demand has not significantly improved.

Analysis of the industry, if the state for the rare earth remediation efforts have been strengthened, the future price of rare earth or can be maintained at a high level, but the rare earth prices could be reversed, and more depending on whether there is improvement in downstream demand.

GF Securities recently released report shows that rare earth prices bottomed Nearly nine years after the fall has begun to rebound; downstream demand is bottoming out, the emerging demand steadily; continue to focus on the core if the future policy against illegal rare earth and large group integration, the rare earth full restoration of rising prices is a high probability event.

Many in the industry have suggested that the integration has been closed in order to avoid illegal project site relocation of production, effectively curb illegal poaching of rare earth resources, Pirates of the transportation incidents, legislation to expedite the development of rare earth, rare earth as an important strategic resource that needs to highlight its due prominence, rose to national strategic level. Secondly, the practical implementation of inter-provincial joint regulatory measures to further implement the joint monitoring mechanism of rare earth region, improve the communications system. Finally, the proposed development of rare earth industry to support countries to develop specific policies, including capital, technology, personnel and other aspects. On the rare earth deep processing industry in technological innovation, environmental protection and enhancement, research and development, personnel training, etc. to give tilt, rare earth enterprises to guide the healthy development of legal compliance.



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Japanese investment in rare earth refinery in Jamaica will be put into operation

Teeth media reports, Jamaica technology, energy and minerals minister Powell said, Nippon Light Metal Company invested 300 million teeth tooth Andrew Yuan (about $ 3,000,000) from bauxite refining building rare earth plant has now completed more than 95% factories also have all the necessary equipment imports in place.

Plant is completed, the Japanese company will extract bauxite REE. The ultimate goal is an annual plant extract 1,500 metric tons of rare earths. All plant operating costs will be Japanese company. In January this year, according to media reports teeth, Nippon Light Metal Company in Jamaica bauxite (clay) sediments found in high concentrations of rare earths.

Powell said, I believe this is a successful demonstration project. In fact, we will soon start the factory with Japanese companies operating in the commercial negotiations. Currently, all rare earth production demonstration plant jointly owned by the two sides.

Jamaica Bauxite Institute and Nippon Light Metal Company in September 2012 signing of the Memorandum of demonstration projects.



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July 17, 2013 RE market

Today, many varieties of rare earth market price changes, the overall trend for the better, suppliers increased again praseodymium, neodymium and dysprosium metal oxide prices. Erbium oxide market prices continue to rise, some suppliers raised yttria offer.

According to Ganzhou manufacturers now reflect praseodymium neodymium metal with ticket prices again raised 420,000 yuan / ton, the price is higher than the weekend 2-3 million / ton. Dysprosium iron with a vote passed 1.8 million yuan / ton, there are vendors that temporarily will not accept less than 1.83 million yuan / ton sold dysprosium iron.

Europium, terbium market, europium oxide recent transaction is still active, fewer inquiries, market prices will remain stable, with the current mainstream fare in the 400-410 yuan / ton or so. Terbium oxide market recently with ticket prices continue upward, according to Ganzhou to the supplier of terbium oxide with mainstream fare 340-350 yuan / ton, some businesses will not accept less than 3.55 million yuan / ton shipments.

Neodymium and praseodymium oxide, dysprosium oxide market by the traders thermal inquiry, it is understood that some separation plant in the sale of neodymium oxide, praseodymium futures, futures prices with no votes 265,000 yuan / degrees. Currently neodymium oxide, praseodymium, dysprosium oxide is more difficult to find a spot, suppliers reluctant to sell. Today, dysprosium oxide with votes 1,780,000 yuan / ton. According to Ganzhou traders said, and now the stock is expensive period before purchase, and now the still heavy losses, not going out at today's prices.

Two days erbium oxide price fluctuations, with a vote yesterday can accept 280,000 yuan / ton ship suppliers today will once again raise the price 1-2 million / ton, very price intentions clear. Manufacturers said demand for downstream applications now no significant improvement in raw materials rose unpredictable temporarily keep watching on the raw materials market, only the demand procurement. Today yttria prices slightly upward, before willing to 60,000 yuan / ton shipped, the price is raised to 65,000 yuan / ton, according to Fu Bao understand the first half of the overall downward trend, nearly a month yttria prices remain stable , the current mainstream market prices slightly up, but the market is still a large volume, can hardly be improved due to market demand.

Magnetic scrap market, two days short of the higher recycling prices 92-95 yuan / kg, long 97-98 yuan / kg, tiles 108-110 yuan / kg. Today, a slight increase in motor scrap recycling prices, Taizhou, Linyi region Brushless mainstream recovery price 79-81 yuan / month, brush recovery price 121-131 yuan / month. Small traders shipped is not positive, the stock market continued to rise so that the hands stock traders who want to keep watching the market, looking for a better shipping timing.



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