Currently RE market remains stable, slightly lower transaction prices of individual products , there are manufacturers that are traded are relatively light rare earths , not the goods . Mixed views on the business outlook , bearish see stability of both , some businesses may think the outlook is still upward .

Praseodymium , neodymium market, businesses offer a smooth , slightly lower part of the business transaction price . According to the manufacturers with Ganzhou understood praseodymium , neodymium with votes 40-40.6 yuan / ton, with weekly prices were flat. Currently without a ticket price remained at 340,000 yuan / ton, the price is slightly lower individual businesses 1-2 thousand dollars / ton, although the market is more deserted, there are vendors do not accept less than 340,000 reflects the price of shipping. According to sources from the industry , although rare hitting has achieved results, but there are still a number of illicit small processing plant supply into the market , driving down the market price.

Metal, according to the current manufacturers offer Ganzhou Rare Earth and China Association released pricing information displayed neodymium metal prices continue to fall , according to the manufacturers with Ganzhou understand the current metal prices have been as low as neodymium 406,000 yuan / ton , according to feedback from other manufacturers of metal dysprosium prices temporarily remain stable at 2.4 million yuan / ton or lower , not significantly reduced .

Gadolinium products, according to gadolinium iron plant reflects merchant shipping now positive, but the order is not ideal , the current price is the lowest level since mid-July, although not dramatically diving prices , factory shipments are still minor adjustments to the current gadolinium iron ship with ticket prices at about 170,000 yuan / ton , lower prices at 167,000 yuan / ton. The current prices are gadolinium oxide 15-15.5 Million / tonne between shocks.


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December 12, 2013 market price of rare earth products

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How impact on the total mining tungsten, rare earth and other control?

Rare earth industry is a small industry, from minerals to oxides, salts, metals and alloys , to a variety of rare earth materials, according to the national output ranging up to only 1,000 yuan. From the look of global rare earth production is only about 120,000 tons of aggregate demand (100% rare earth oxides computing ) , a variety of global production of rare earth materials , only a few dozen tons. However, the rare earth is a highly strategic emerging industries associated with characteristic industry is serious excess capacity in the industry.

Over the last decade , due to the rare earths are inappropriately too stir around are starting a large rare earth projects. Rare earth products , including oxides, metals and a variety of rare earth materials all working exceptionally production than sales , oversupply appear. Expansion of production capacity much faster than demand growth . China's major rare earth products production capacity even more dramatically than the total demand at home and abroad , resulting in a great waste of social resources , reducing the efficiency of resource allocation , the impact of the structural adjustment and industrial upgrading.

According to incomplete statistics , in 2012 the main rare earth products and production capacity than that excess coefficient as follows: 3.2 of rare earth oxides , rare earth permanent magnet materials 3.89 , 2.94 rare earth luminescent materials , rare earth hydrogen storage materials 2.37 , rare earth catalytic materials 1.72 . The past two years , due to the world economic downturn and the impact of domestic economic slowdown , coupled with the 2011 surge in rare earth materials , rare earth downstream enterprise applications lag serious injury benefits, as well as rare domestic reduction techniques and alternative technologies development, so that the already excess capacity to face weak demand in the market, many rare earth raw materials companies underemployed or discontinued, rare overcapacity become the Government and the industry at all levels of headaches chronic disease , and the formation of rare earth production capacity more eliminate the more cycle. Even more disturbing is that in a very serious overcapacity situation in many areas of high-tech banner or banner , or predict a high return on investment is difficult to achieve, is still under construction new rare earth projects, so that excess production of rare earth increasingly serious .

Rare overcapacity caused mainly due to the existence of the institutional mechanisms and drawbacks . For example, one-sided pursuit of GDP improper performance concept and assessment methods ; do not pay attention and focus on economic value ; do not respect the laws of supply and demand , price-volume markets such as basic economic rule of law ; lack of investment and financing rigorous audit , access system and carefully beforehand , and afterwards review checks and accountability ; "offside" behavior of local governments to become a major force overcapacity hand ; many state-owned enterprises , the central enterprises over the pursuit of product diversification , resulting in investment decisions ; lack of self-discipline , lack of access to early warning industry mechanisms , and so on .

Overcapacity is not a phenomenon unique to the rare earth industry , according to statistics in 2012 the domestic industry overcapacity coefficient: 1.39 Steel , cement 1.36 , 1.37 flat glass , aluminum, 1.39 , 1.33 shipbuilding . From the comparison of rare earth and iron and steel industry overcapacity coefficient of view, the production of rare earth overcapacity serious than in other industries . And steel , cement and other major overcapacity large industries, causes and ways to resolve the overcapacity rare similarities . Rare overcapacity caused a variety of factors influence its solution should also be a multi-pronged approach to lay a portfolio .

First, the allocation of resources and play a good role in balancing supply and demand in the market

Overcapacity is a market phenomenon , in a certain sense a modest surplus is the norm , it helps to balance supply and demand , and promote technological progress and management innovation. Moderate demand is greater than supply market competition mechanism into play premise , with the promotion of competition and so on. Market allocation of resources and the role of the law of value , and changes in supply and demand for capacity has some regulatory role . Oversupply leading to double down prices and profits , leaving some companies even cause loss quit , thereby reducing the production capacity, and vice versa. Under normal circumstances , the invisible hand of the market will be quite effective in regulating supply and demand , suppress or boost production capacity. Of course, this has a certain period that is appropriate lag effect , companies , investors abandoning capacity , will have had to bear heavy losses when the plant shut down . Unfortunately, excessive government intervention or interference corporate investment behavior, market excess signal disregard the already strong position given , still the land , taxation, credit , etc. to duplicate construction projects to support . While some state-owned enterprises or central level, due to institutional and many other reasons , did not form in the strict sense of the market dominant position improperly to pursue scale value as the primary goal, rather than benefits and investment income as a primary consideration. Lack of major investment mistakes effective accountability . Respect the laws of economics , market allocation of resources to play a good mechanism for regulating the supply and demand relationship is a subject in the future to seriously.

Second, changes in local government achievements, compression capacity work center of gravity

Local governments out of consideration for GDP growth , employment, tax revenue and other factors, regardless of the country of rare earth reality of serious excess capacity , and launched a new project to do so despite the overall look from the wrong country , and ultimately may form parts of the invalid subordinated debt investments and difficult , but in line with the short-term interests of the local , but also for local officials to obtain performance and achieve promotion are not unrelated. So really not to GDP Heroes, the center and the primary responsibility to the next compression rare earth production capacity of the local government is imperative.

Development is the last word, which is the law of the country regardless of market overcapacity major boost rhetoric . Notice remark true , but the development of scientific development should be invested there should be effective, rewarding investment, input-output ratio talk , talk about the real supply and demand situation, rather than pragmatism to fabricate false needs. For enterprises to truly become the pursuit of profit as the main target market entities , including banks and various investment companies.

Third, the rare corporate consolidation and restructuring and structural optimization and upgrading of both

Should be based on the principle of "government guidance, corporate body, bond assets , market behavior ," to accelerate the rare earth raw materials mergers , consolidation, reorganization process to improve industrial concentration, strengthen environmental governance , and enhance the effectiveness of rare earth raw materials and international business competitiveness. Meanwhile rare earth industry to increase the product structure and industrial structure adjustment, compression long-term products, the production of high- end products and good cost-effective use of the product . Pay attention to differences in development , to avoid homogeneous competition and avoid vicious price war competition .

Proven time and practice , regardless of market rules, a " matchmaker " approach to force the integration of the formation has been proven less successful , in fact, doing the formation of local monopolies and "only" business , that bigger is better , more pure form of ownership as possible, which , in theory, encourage diverse forms of ownership coexist with today 's orientation contrary , struggling in the operation , subject and object of sorts ( refers to merging party with the merged party ) .

Fourth, strongly encourage and develop rare earth application , restore the original market and cultivate new market demands

Currently exist on the middle reaches of the rare earth industry surplus of products , high-end products, especially lack of end-use applications exist, the overall surplus and the structural shortage of coexistence patterns . Vigorously develop the application of rare earth materials , rare earth materials into key support components, parts until the whole , it should be a top priority for future work . The past two decades , rare earth materials have broad and important applications in various high-tech fields , especially the application of rare earth permanent magnet materials has become a driving steady growth in consumption of rare earths dominant factor . But for various reasons , many applications of rare earth permanent magnet materials industry to use other magnetic materials , not only the cost is not ideal , is not conducive to energy conservation, rare earth permanent magnet upstream companies have lost part of the market . Rare earth catalyst , rare earth luminescent rare earth hydrogen storage , rare earth polishing materials market demand can be expected in the new energy vehicles , advanced manufacturing , environmental protection and other strategic high-tech industries, rare earth permanent magnet materials have similar markets and restore the original expansion of market capacity issues . Rare in glass, ceramics, steel, non-ferrous metals also have good prospects , and solve lanthanum , cerium and other elements of the problem of excess . While encouraging enterprises "going out " strategy, the development of foreign markets, especially the application of rare earth materials market .

Fifth, the use of credit and other financial means to help reduce excess production capacity and excellent companies

May be considered by the rare earth industry trade association based overcapacity establish early warning and information dissemination system to provide relevant information around the commercial banks , and rare earth projects overcapacity class barriers set up the loan . For excellent companies are given appropriate support and other credit terms . Meanwhile in resource factor prices , taxation system, accountability system , such as deepening the reform , the better the rare earth industry access. Around environmental protection departments should strengthen the regulatory environment for rare earth materials companies set strict environmental threshold.

In the rare earth industry to be firmly controlled increments , optimizing inventory , take various measures to prevent the production capacity of rare earth materials launched at further deepening the reform of investment and financing premise to establish and improve market-driven excess capacity to resolve conflicts long-term mechanism . To adhere to the central and local interaction , strengthen coordination services.

Of course , solve the overcapacity rare , there are many issues to consider. As for shutting down corporate employee relocation , debt deal with the problem of handling and transfer of assets of enterprises , product structure adjustment should be carefully studied and solved.

This spring the general election of the new government , from concept to practice full commitment to the market has been highlighting the decisive role in allocating resources , simply take longer simply rely on the Lord to promote economic investment , not trillions repeat the mistakes of investment to stimulate the economy . Currently the central leadership has repeatedly stressed that the country will not use GDP Hero, but the determination to become the central place of action is still some way to go. To solve overcapacity multi-pronged , system solutions , to lay a portfolio , but also to solve the problem , in order to cure based. Through hard work for a longer period of time, really put the high pressure down excess capacity of rare earth and rare earth end products from raw materials to vicious price competition , the formation of the supply and demand balance, reasonable structure, rational competition , the orderly development of rare earth industry new pattern.


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Email: sales@chinatungsten.com
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