Rare Earth Producers Still Beholden to Chinese Supply

The performance of rare earths producers such as Australia’s Lynas Corp (ASX:LYC) and Molycorp (NYSE:MCP) is still tied to how much rare earths supply China releases into the market. However, the author saw things looking up overall for producers outside of China.
 
As quoted in the publication:
 
You could say that the non-Chinese rare earths miners and processors have been taken for fools. All that work, and then the market is again flooded, forcing prices lower. But it’s worth thinking again. While companies like Lynas Corp were funded on the back of rocketing prices, their very existence now means China’s monopolistic stranglehold is broken. Lynas may not be achieving great things as a share, but if it can manage to hang in there, it could have a good future when prices rise.
 
The rare earths story really isn’t that complex and in truth, the more market players, the more these rare earths become less “rare”. That can only be a good thing.
 
 
 
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Japanese imports of rare earths from India

Indian Prime Minister Modi will visit Japan on August 31, people have yet to Japanese media have reported visit to Japan & ldquo; achievements & rdquo ;. "Japanese Economic News" reported on the 28th in the headlines, Japan and India will reach an agreement on September 1, imports of rare earths from India.

The report said that Japanese Prime Minister Shinzo Abe and Modi at the Tokyo talks, the Japanese companies and Indian companies to achieve common development and production of rare earth contract, the negotiations have been conducted for several years. Starting early next year in February, 2000-2300 tons of rare earth will be shipped from India to Japan. This is probably for the Japanese production of rare earths by 15% of the total.

"Japanese Economic News" commented that, before more than 90 percent of Japan's rare earths are imported from China, but since the collision occurred in Japan and Diaoyu Islands waters, China has reduced the amount of rare earth exports to Japan, making Japan uneasy. Since then, the Japanese government actively to increase rare earth import channels, and is committed to the development of substitute materials of rare earth, but there are still 60% of the rare earths to be imported from China. Imported from India to make rare Japanese imports of rare earth tend to diversify further, change the status quo of China's dependence. Apart from India, Japan is also working with Vietnam, Kazakhstan negotiate joint production of rare earth projects in order to diversify risk.

Indian leaders meeting in Japan & ldquo; China issues & rdquo; still more than rare. Japan's NHK television reported that Abe will be out for the China National Offshore activity is frequent, and India to discuss strengthening cooperation between the security field, the establishment of diplomatic and defense between Japan and India's cabinet members level consultation mechanism, and promised to provide loans to India. Japan's "Daily News" commented that the Indian Ocean is connected to the Middle East and other places in East Asia maritime traffic. China in recent years in the South Asian countries to strengthen the influence, Japan and India will issue a joint statement by the leaders of the talks between the two countries to strengthen the joint.

However, Japan and India would like to look into the honeymoon period is not easy. According to Japan's "Yomiuri Shimbun" reported on the 26th Fair Trade Commission of India to Japan in India 14 companies out of high fines, the amount of up to 43.2 billion yen (about 2.558 billion yuan). Right now, Japanese companies have expressed strong dissatisfaction against this practice in India relevant departments.


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Rare Earth Alliance Will Be Set Up

Seven domestic rare earth companies have formed an industrial alliance to sue Japan's Hitachi Metals for its patent monopoly in the United States.
 
Sun Baoyu, chairman of the board of Shenyang General Magnetic Co Ltd and leader of the alliance, said the companies want to end the longtime monopoly held by the Japanese firm in various international markets.
 
The alliance has already kick-started the process by hiring lawyers to ensure that their production process does not infringe on the Japanese company's patent rights. In addition, Sun and his alliance plan to prove the invalidity of three patents owned by Hitachi Metals Ltd, as part of its efforts to break the stereotype among potential customers.
 
The Japanese firm had the key intellectual property patent rights for neodymium iron boron untill July 8. Hitachi Metals holds more than 600 neodymium iron boron magnet patents and has authorized only eight Chinese companies with their 149 patents.
 
Hitachi's own material patent in the United States has expired, Sun said, adding that Chinese companies that had development and processing patents that are different from those of the Japanese company should be allowed to sell their products in the US markets.
 
China has about 200 neodymium iron boron magnet producers, with five companies having annual production capacity of more than 3,000 metric tons and 20 with capacity of between 1,000 and 3000 metric tons.
 
If the Japanese firm's patents are held valid, then domestic companies can sell their products only within China. Sun said the production of neodymium iron boron magnet products has remainedstagnant at about 80,000 metric tons, of which, one-fourth is patented and the rest is either sold domestically or pending approval of patents in overseas markets.
 
"Very few international customers would be interested in our products because of the influence of Hitachi's patents," said Sun. Chinese producers have to compete in the low-end market where many have been suffering from losses and production suspensions.
 
The alliance has been sell its products since July and received interest from many international customers, Sun said.
 
Neodymium iron boron magnets are widely used in high-technology industries, from new-energy automobiles to mobile phones. It is estimated that an iPhone has at least 10 components where neodymium iron boron magnets are used. China already accounts for 90 percent of the global rare earth supplies. Rare earths are a group of minerals that have a wide range of uses in high-tech sectors such as defense and renewable energy.
 
 
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Japan and India intends to develop rare earth enterprises

Comprehensive Japanese media reported that Toyota Tsusho and other Japanese enterprises have basically reached a consensus with the Indian companies will jointly develop rare earths in India, and in 2015 exports to Japan. Japanese Prime Minister is expected Shinzo Abe and Indian Prime Minister Modi will show support to develop during talks in Tokyo on September 1. It is reported that export scale will reach one thousand tons or more.

Japanese and Indian companies from a few years ago began negotiations around the issues of rare earth exports, and now finally settled in terms of price. The Japanese and Indian firms to jointly develop rare earth rich sources of procurement or Japanese companies, is expected to achieve a stable supply.

Japanese Prime Minister Shinzo Abe and Indian Prime Minister Modi recently to reach a common production plan at the Tokyo summit. It is reported that Indian companies from uranium and thorium ore production of mixed rare earth materials, the use of Toyota Tsusho production of electric and hybrid vehicles required for rare earth materials neodymium, lanthanum, cerium and praseodymium and other rare earth materials.

India hopes among Japan's Prime Minister Modi's visit to get support for a nuclear agreement and its huge market to attract investment.


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America and Australia to discuss the development of rare earth resources

According to reports, USA and Australian officials have discussed how to develop rare earth resources in Australia, the meeting seems to involve Mary Kathleen uranium before, according to a study by Queensland's chief geologist Brad John, the mineral containing rare earth resources 7000000 tons. The uranium was discovered in 1954, has experienced several times of mining, until 1984, shutting down. Local mining officials hope mine project to restart, also began to attract mineral company to develop through bidding.


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Supplier of rare earth hold wait-and-see attitude, price remains stable

Rare earth the mainstream market prices remain stable, vendor now mainly wait-and-see attitude, a rectification movement has opened the industry for a period of time, while the integration to speed up the pace, they dare not rashly substantial price, the market wait-and-see attitude.

At present, Dy products market, prices stable or slightly adjusted 1-2 yuan / ton, as previously offer higher now slightly callback to 145-146 yuan / ton near, dysprosium iron price is adjusted to 149-150 yuan / ton. Lanthanum, cerium products market, the recent price changes, the oxide and metallic relatively smoothly, according to the Baotou area supplier said metal lanthanum and cerium metal present ticket prices remained at 40000 yuan / ton and 45000 yuan / ton. At present, the oxide prices in the 1.5-1.6 yuan / ton near the shock.

Praseodymium and neodymium magnetic material market price is still little changed today, the main price in Ganzhou is still concentrated in the 395000 yuan / ton, praseodymium neodymium oxide quotation is concentrated in the 310000 yuan / ton, the recent neodymium metal prices weak shocks, Ganzhou area vendor prices slightly downward, the neodymium metal band ticket pricing in 380000 yuan / tons. According to metal neodymium rare association yesterday in the quotation, with tickets already dropped to 37.2-38.3 yuan / ton. It is understood as part of the downstream magnetic processing factory, the strong magnetic product price stability, such as D6.5 cylindrical price a factory Guangdong area still maintained at 145 yuan / kg, nearly two weeks there has been no change in price.


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The market for rare earths prices overall steady, dysprosium products no obvious change

The market for rare earths prices overall steady, dysprosium products without obvious changes, traders offer relatively strong, praseodymium and neodymium the quotation of prices steady, although not significantly reduced, many businesses also said the rise space limited. Some traders said Monday it will wait and have a look, no clear price, also reflects the market for “ no action ”. Individual businesses to adjust the price slightly, slightly. Before business August forecast for the market pick up better, the market trend is expected in August, near the end, the businessmen said that the market may still continue smoothly before the end of the month.

Praseodymium, neodymium market today offer basic last weekend market, Cao Shen praseodymium oxide prices concentrated in the 52.5-53 yuan / ton, neodymium oxide in 295000 yuan / tons. Europium, terbium yttrium oxide, the market downturn, according to some enterprises to reflect, europium, terbium has been purchasing quantity is less, the total annual demand is not, may be only a few hundred tons, prices will not be significantly increases. The yttrium oxide market because there has been excessive supply, so the market has been difficult to pick up, 5N yttria offer from traders recently has been maintained at 4-4.1 yuan / ton, listing price of rare earth aluminum recent also only 42000 yuan / ton.

The price of products is still relatively strong, steady, the current market mainstream price in the 1450000 yuan / ton near, dysprosium iron ticket in 1500000 yuan / tons. Today, up to 14; 00 Bohai quotient dysprosium oxide average tax price in 1638 yuan / kg, but as part of supplier understands, now high prices are still difficult to clinch a deal, the market outlook is not necessarily a sharp rise.


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Rare earth prices have stabilized or part of the business of the goods is not up

This week the rare earth market most products prices were flat or slightly down, PR and Nd, Dy products prices stable, europium, terbium prices drop shock. Praseodymium, neodymium, erbium oxide, gadolinium, price is also a slight adjustment, amplitude. There are some businesses before the expected to purchase the praseodymium neodymium, dysprosium oxide certain, now wait-and-see market does not ship.

The price difference of europium, terbium, dysprosium dysprosium oxide products, steady operation, a trader said that although there are goods, but is not willing to, foreign price is higher, no obvious loosening. Price fluctuations related to iron and dysprosium dysprosium metal is smaller, at present Ganzhou area a supplier that dysprosium metal with ticket in 1950000 yuan / tons. Europium, terbium market because demand is limited, the market downturn downlink, especially the terbium oxide, a trader from the feedback situation, last week the terbium oxide price in the 2600 yuan / kg, while the current price in the 2400-2500 yuan / kg, otherwise the supplier said it's still reported in 2600 price is not adjusted, some businesses hold wait-and-see will be the price of goods is much higher than the mainstream market price, such as 2800 yuan / kg or more.

Praseodymium, neodymium products market, the recent PR, nd single oxide prices stable or slightly adjusted, in the range of 5000 yuan, such as grass sink praseodymium oxide, at present Ganzhou area traders quotation at 52.5-53 yuan / ton, the basic flat with last week. Neodymium oxide prices over the past two weeks slightly fluctuation, the price this week, some suppliers price rose after the first down, when offer higher downstream difficult to accept, the current prices relatively early changes, more concentrated in the 29.5-29.8 yuan / ton near. Praseodymium neodymium alloy and mixed oxide prices relatively stable, Bohai quotient and spot market quotations from suppliers are more concentrated in the 310000 yuan / ton or slightly low, praseodymium neodymium alloy prices this week has been maintained at 395000 yuan / ton.


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Xunwu County Fix The Illegal Exploitation Of Rare Earth

Recently, Xunwu county of Jiangxi province held a special meeting to go on special rectification work of illegal mining of rare earth.

The meeting urged all villages and towns of all departments should fully recognize the importance of efforts against illegal rare earth mining and the necessity, which set up the protection of rare earth resources protection for advantage backwardness, east snowland water quality and protect the cadre own idea, earnestly fulfill rare earth resources and ecological environment protection responsibility, investigate mining rare earth.

Xunwu county party committee Shen Baochun stressed, departments at all levels should conscientiously in accordance with the unified arrangements and requirements of county Party committee,and county government establish and improve the mechanism of dynamic inspection, supervision responsibility mechanism, linkage mechanism, case report mechanism; To strengthen the law enforcement, intensify patrols, blow, accountability, building "the high tension line" to combat illegal mining of rare earth behavior, to grasp the real battle illegal mining rare earth work pays special attention to, to defend national strategic resources, protection for hills and green, building a harmonious found wu to make positive contribution.

 

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Dredge and healthy development of rare earth industry or welcome

RE is an important advantage in resources, have been widely used in military, electronics and other industries, is an important strategic mineral resources can be used in the manufacture of magnesium, aluminum, titanium and other alloy material, its most notable feature is the substantial increase in other products quality and performance, is vividly called & ldquo; industrial vitamins & rdquo ;. China is not only the largest producer of rare earth first, but also the export superpower. However, the industry has been due to disorderly competition, rare earth to escape the & ldquo; cabbage price & rdquo; cheap fate.

In support of the rare earth industry, technological innovation and healthy development of industry, the Ministry of Finance, the Ministry of Industry and Information Technology have jointly issued the "State of Things and the rare earth industry development grant fund management approach." Hereinafter referred to as ("Regulations"), it is learned in the field of rare earth industry mainly supported by grant funds include five aspects: First, the exploitation of rare earth resources regulation; Second, the rare earth mining, smelting and environmental transformation; third is rare common key technologies and standards development ; four are rare high-end application technology development and industrialization; five public technical service platform. Rare earth industry subsidies from the central budget, the Ministry of Finance, the Ministry of Industry and Information Technology fulfill their duties, division of labor, co-management. Industry experts said that China's rare earth industry into the policy tone period.

Number of policy measures to promote the industry trend for the better

In order to protect the rational development of rare earth resources, government has issued a series of related policies. May 19, 2011, "Some Opinions of the State Council on promoting the sustainable and healthy development of rare earth industry," released in the environment, access system, export management, tax and other aspects of the implementation of a more stringent policy, effectively promote mergers and reorganizations. This is the rare earth industry, the State Council promulgated the first programmatic document of great significance for the development of the industry.

November 9, 2012, to promote the healthy and orderly development of China's rare earth industry, regulate the rare earth industry adjustment and upgrade the management of special funds, the Ministry of Finance issued a "special funds to upgrade the rare earth industry restructuring management approach" (hereinafter referred to as the "Regulations"), the use of Yijiangdaibu, free financing and capital injection method of rare earth mining has been completed overall supervision of the construction of the local government system to give a one-time bonus, incentive payments are generally not more than 20% of the actual project investment.

And for the introduction of the "management approach", industry experts say, covering the rare earth industry in the whole industry chain upstream and downstream enterprises, and with the introduction of export quotas for rare earth industry as well as frequent industry consolidation, rare earth prices will gradually stabilize .

"Management approach" shows that the rare earth industry grant funds to support the exploitation of rare earth resources, supervision; rare earth mining, smelting and environmental transformation; rare common key technologies and standards development; rare high-end application technology development and industrialization; and public technical service platform .

& ldquo; rare earth industry on behalf of grant funds to award a penalty, can enhance the enthusiasm of enterprises to standardize development continued at a loss for the previous rare earth enterprises but also a support, help enterprises to standardize their behavior. & rdquo; Zhuo record information analyst Xu Haibin said.

China Rare Earth Industry Association Deputy Secretary-General Chen Zhanheng believes that in recent years through the introduction of a number of national policies and measures to be adjusted, the development of China's rare earth industry to the good momentum evident, especially in the environmental aspects of performance is particularly significant. & ldquo; under the guidance of a series of policies, China's rare earth companies invest in environmental protection has been greatly improved over the local government is also a lot of work in this regard & rdquo ;. It is reported that Zhang, general manager of Baotou Steel Rare Earth had said publicly, Baotou Steel Rare Earth will focus on optimizing product structure, extend the industrial chain, enhance product value, increase investment in environmental governance, centralized sewage treatment.

In terms of industry concentration, China has basically formed Baotou Steel Group, China Minmetals, the aluminum company, Guangdong earth, Ganzhou Rare Earth and Xiamen Tungsten and other six companies led industry development pattern. Earlier this year, the Ministry of Industry and Information Technology was held in conjunction with the relevant departments to form large-scale enterprise groups rare special meeting in Beijing, raised key support this six companies were led to further promote mergers and acquisitions, formation of large rare earth enterprise groups. Recently, the news about the rare earth enterprise integration also frequently appear. Xiamen Tungsten July 9 announcement that "Xiamen Tungsten Co., Ltd. Rare Earth Group was established plan" has recently received the Fujian provincial government approval. Currently the program has been submitted to the Ministry of Industry and Information Technology approved the record. Aluminum Corporation of China's Rare Earth Co., Ltd. China Rare recently with the Commission by letter, Shandong Province, China Iron and Steel Research Institute Group Co., Ltd. signed the "rare earth enterprises in Shandong on promoting the integration of the Letter of Intent," in Beijing, the three parties will build & ldquo; Shandong Rare Earth Group & rdquo ;.

Xu Haibin believes that the introduction of the rare earth industry subsidy fund management approach, the integration will play a stimulating effect on the industry in some way. Because the scale of rare earth enterprises in the management and technical level, and have an advantage, easier to get financial support, particularly in countries proposed the formation of a large group of rare earth program after some corresponding policy will tend to support these groups of rare earth enterprises . The upgrade from the Ministry of Industry and Information Technology recently publicized 2014 list of the rare earth industry restructuring intended to support projects special point of view, only swept the Baotou Rare Earth on which 11 projects, the aluminum company also has 10 projects selected, the advantages of large enterprise groups obvious. The industry believes that the current development of rare earth industry is facing difficulties, some financial support and superior resources concentrated in large enterprises, under pressure to survive, some small and medium rare earth enterprises may accelerate closer to big business, or self-eliminated.


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