"Rare park development disorder causes excess production capacity further." Rare Association Secretary-General Ma Rongzhang in an interview with reporters said. He said that since 2010, many areas of rare earth park planning and construction. The existing national park about 18 rare earth industry, similar to the planning of these parks, and many more resources at the core extends to midstream and downstream industry chain, involving separation of rare earth smelting, magnets, light function, hydrogen storage, polishing powder, rare earth catalysts and other major new materials, which will lead to the construction of the park of rare earth production capacity further overcapacity.

Rare industrial parks everywhere is the only rare earth industry overcapacity, a microcosm. In recent years, the rare earth industry capacity sprawl to the already fragile chain facing a new crisis.

From the authorities was informed that this year, rare earth Association conducted specialized research. Rare earth recycling business, for example, the survey showed that there were rare comprehensive waste recycling enterprises 55, of which 39 in Jiangxi, Jiangsu, 4, 3, Hunan, Inner Mongolia, Shanxi, the two, Henan, Shandong, Guangdong, Zhejiang, Yunnan each one. Since 2011, the approval of the corporate assault around 90%, waste treatment capacity of 190,600 tons. Among them, the waste treatment capacity of 142,000 tons NdFeB, waste fluorescent powder processing capacity 23,100 tons, waste polishing powder processing capacity 21,500 tons of rare earth waste processing capacity 04,000 tons. At present, annual production of 80,000 tons NdFeB about 30% of total waste by only 24,000 tons; fluorescent powder production 05,000 tons, 30% waste is counted as 01,500 tons; polishing powder yield 1.5 tons, this point of view, rare earth recycling enterprise production capacity has far exceeded demand.

"At present, China's rare earth industry showed overcapacity is becoming increasingly prominent, companies large losses, operating rate of less than 30%, especially in the illegal enterprise under the impact of the whole industry competition is fierce." One Baotou rare earth enterprises responsible person "Economic Information Daily "correspondent said. These people admitted that China's rare earth companies a total of about more than 120 rare earth oxide production capacity equivalent to up to 32 million tons, in addition to foreign enterprises device production, market supply far exceeds about 12 million tons per year of total world demand, capacity a significant increase in domestic demand coupled with rampant illegal enterprises weakened, multiple factors have contributed to the domestic rare earth product prices fall, production and operation of the deteriorating situation.

It is worth noting, by the rare-earth prices and strict control policies to stimulate domestic and foreign resources, but also to accelerate the exploitation of rare earth rare earth facing severe domestic competition. Zhang, chairman of Baotou Steel Rare Earth, including a number who have expressed worries about rare earths, when the domestic rare earth prices will be a great impact on overcapacity problem will worsen. According to statistics, at present there are nearly 40 foreign countries, more than 200 companies planning more than 500 rare earth projects, including the United States, Australia, Brazil, Canada, Kyrgyzstan and other 15 countries, more than 40 rare earth project is progressing rapidly . U.S. molybdenum company's current production capacity has reached 5000 to 6000 tons, by the end of 2013 will reach 400 million tons production capacity; Australia Yalainasi factory in Malaysia last year, has successfully produced the first batch of rare earth products, its annual production capacity will reach a few years 22,000 tons, to meet about one-third of global demand. After 2015, only the United States and Australia that the two companies to meet global market demand outside China.

In this regard, Ma Rongzhang that, first we must resolutely combat black chain, as soon as possible metals regulations, a clear main responsibility to establish long-term mechanism to regulate rare earth production and management behavior. Secondly, as soon as possible on the rare earth waste recycling project for comprehensive rectification, combining guidance, regional planning, the establishment of regional recycling center, regulate rare earth waste production and business activities, incorporating industry regulatory category. In addition, you should strongly promote the use of rare earth balance. Especially lanthanum, cerium and other elements of an annual surplus surplus 30,000 to 50,000 tons, should be encouraged to lanthanum, cerium in the field of environmental protection, structural materials in applications such as water purification, denitration catalyst, UV protective glass, rare cast iron, steel, rare earth , rare earth magnesium, rare earth copper, rare earth and aluminum.


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August 20: Rare earth prices to sustain gains, lower purchasing cautiously bullish do not change upstream manufacturers do not ship psychological, because the supply and demand sides deadlocked, the rare earth market volume was light based.

Praseodymium oxide mainstream manufacturers tax price 535,000-545,000 yuan / ton. Neodymium oxide 350,000-360,000 yuan / ton.

Dysprosium oxide mainstream manufacturers tax price 240-260 yuan / ton, dysprosium iron mainstream manufacturers tax price 240-260 yuan / ton.

Lanthanum oxide mainstream manufacturers tax price 27,000-29,000 yuan / ton. Cerium oxide mainstream manufacturers tax price 28,000-29,000 yuan / ton.

Praseodymium neodymium mainstream manufacturers tax price 365,000-375,000 yuan / ton, praseodymium neodymium metal mainstream manufacturers tax price of 460,000-470,000 yuan / ton.

Europium oxide phosphor grade mainstream manufacturers tax price 4,800-5,000 yuan / kg. Terbium oxide phosphor grade mainstream manufacturers tax price 4,300-4,500 yuan / kg.


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"Rare earth industry, the whole industry chain are decadent unbearable this year is to the freezing point, in June sales to its lowest in two years, the order is very small, with an estimated 7-8 months would be even worse." By the end of June, the domestic rare earth minerals agency Manufacturers Qiu Zhicheng, on the "new industries" Reporters large inverted grievances.

Qiu Zhicheng of our products manufacturers, rich in rare earth mineral resources Ganzhou, Jiangxi. Just before the June 18, Ganzhou Authority organized mine safety inspections, relevant departments are private mining of rare earth crackdown launched a full-scale, the majority of private mining stocks were seized.

Despite the positive impact against private mining, rare earth quotations began to rise, but the downstream market demand does not pick up, the oversupply of criticism still can not be effectively mitigated. Baotou Steel Rare Earth, represented by rare earth traders, had reluctantly chose discontinued insured. Qiu Zhicheng overseas customers or reject replenishment transactions scarce, investors can hardly optimistic.

Prices rebounded briefly

Recent Ganzhou action against illegal exploitation of rare earth bear fruit, rare earth prices began to rise.

Wikipedia information rare earth industry, senior analyst Du Shuai soldiers to reporters, for example, since June this year, the severity of the rare earth oxide prices have increased, including praseodymium oxide from 1.1 million yuan per ton rose to 1.6 million yuan per ton, terbium oxide from 2.2 million yuan per ton rose to 3.1 million yuan per ton. Within a month, the two products rose by as much as 40% -50%. But the prices are still lower than last year's lowest price.

"Our concern is that rare earth-related product prices, but because of Ganzhou combat exploitation of private mine this gimmick caused transient recovery." Du Shuai soldiers bluntly, the government's remediation efforts is still not big enough, the effectiveness is limited, all prices could No steady also only play a question mark. Downstream processors and traders are on the sidelines.

The downstream end of the current capacity utilization rate of NdFeB products into seven or eight, but not low-end products to three percent, in fact, the low-end products accounted for 80% of total NdFeB market.

Data shows that in 2011 foreign customs import statistics than the rare earth export statistics of China Customs number higher than 1.2 times the normal amount of smuggling that 120% of exports.

For the rare earth industry longstanding private mining excessive digging and smuggling in recent years, relevant departments of the action never stops in order to protect rare earth market order, especially in 2012.

April 2012, China Rare Earth Industry Association to set up; June, formally introduced Rare invoices; August, rare earth trading platform was set up; September, the state of rare earth resources in the implementation of strategic purchasing and storage. In addition, the government also increased the rare earth industry, environmental barriers to entry. October, the National Office of the Ministry of Industry and Information also carried out illegal acts on the verification of the consolidation of rare earth action.

Although the government campaign frequently, but still can not stop the private mining and smuggling, and these illegal acts have intensified the trend.

"Adequate supply of high profits and a lot of people take the risk. Rare earth materials manufacturers in order to make the difference and avoid state taxes, preferring to risk the purchase of raw ore from private mines, which has become the unspoken rules of the market." An unnamed country Rare earth traders told reporters, many local governments forced performance requirements, collusion with the private mining boss, or eye, close one eye.

As a result, they pulled down the prices of rare earth products, forming a vicious competition in the market environment.

For similar Ganzhou government seizure of private mining act, indeed, to some extent, ease the contradiction between supply and demand of rare earths, however, to really promote the earth tends to balance supply and demand, alone against private mining can not be done.

Severe overcapacity

Rare earth industry has been in oversupply, production than sales momentum, once the demand is slightly sluggish, industry-wide weakness quickly.

Of rare earth resources in the country, accounting for 23 percent of the world total, but it took more than 90% of the world market supply. The current global production capacity of rare earth minerals, including private, including about 20-30 million tons, while the global demand for rare earths is more than ten million tons, far higher than the supply demand.

Ministry of Commerce on July 1 announced 2013 second batch of rare earth export quotas show LREE, heavy rare earth quotas of 13,821 tons and 1,679 tons. Plus released the first batch of 15,501 吨 quota of rare earth export quotas for the year 31,001 tons, compared with last year's 30,996 ton for flat. However, according to Chinese customs statistics Information Center recently released data, in 2012 China's rare earth minerals, metals and rare earth mixture exports totaled 16,265 tons, down 3.5 percent, accounting for only 53% of annual export quotas.

Insiders predicted by the global economic slowdown and rare earth prices rise and other factors, this year's export quotas may still be used up, a state of excess.

Investment Advisor in the metallurgical industry researcher Yuan Zhibin accept the "new industries" interview analysis, rare earth supply and demand imbalance for two main reasons: First, the lack of domestic rare earth applications, expressed in absolute amounts were smaller and the core technology behind, while the state has I hope to guide the rapid development of the field of application of rare earth; Second, increased supply of rare earth abroad, the domestic price of rare earth smuggling resulting in the low, thereby strengthening the company's sales of domestic rare earth export quotas led to the wishes of low usage.

"Foreign companies generally have a certain amount of rare earth reserves, they can first inventory, and then wait for the price changes, which is a strategy of foreign capital." China Rare Earth Industry Association Deputy Secretary-General Chen Zhanheng believe that some countries are trying to use inventory by temporarily reduce procurement strategy to drive down China rare earth prices.

Weak downstream demand

Nearly a year ago, due to the international economy has not yet out of the woods, the domestic slowdown in GDP growth and other factors, the rare earth industry has entered a period of weak demand in the doldrums. Smelting enterprises have ceased or reduced separation of rare earth materials production plant underemployment, rare earth minerals and rare earth raw material prices remained low and factories operating difficulties, have already become the norm.

July 2, performance and stock price decline of Baotou Steel Rare Earth Sarkozy announced that the company's processing plant will be discontinued dilute half. In dilute dressing plant was halted, the company smelting separation and downstream industries such as functional materials in recent years, the company can use the reserves of rare earth concentrates normal production.

This is a dilute Baotou Steel Rare Earth processing plant shut down for the first time this year, but in the situation from last year, as the industry downturn, Baotou Steel Rare Earth released on three occasions discontinued insured announcement. Other leading companies within the industry Minmetals Rare Earth, aluminum and Xiamenwuye also followed discontinued. Discontinued insured in the whole industry a month later, although some rare spot market appears broad, but after a brief rise, prices will fall. Ultimately, the 2012 annual average price of rare earth fell by about 40%.

Aforementioned rare earth traders said that since the second quarter, most of the small and medium rare earth enterprises began to stop production or semi-production, mainly due to a continuous decline in the market price of rare earth, rare earth enterprises large losses.

April 19, Baotou Steel Rare Earth released a quarterly report, the reporting period the company achieved operating income of 2.296 billion yuan, down 35.39%; net profit of 2.45 billion yuan, down 79.67%. Rising nonferrous metals, rare earth and other rare earth giant Minmetals has disclosed for the first quarter earnings report also far from ideal.

July 11, Xiamenwuye first-half earnings announcement, the company reported a net profit of 71.1757 million yuan during the period, down 77.69%. Among them, rare earth products continues to slump during the first half of this year, sales prices and sales volume fell sharply, leading to affiliated companies Changting Jinlong Rare Earth Co., Ltd. due to operating losses and provision for inventory losses of 109 million yuan to prepare.

The color of shares expected first half net profit of 13.9136 million yuan in -3478.39 million, more than the same period last year decreased by 50% -80%. Positive sea Magnets are also expected from January to June net profit of 18.84 million yuan -3769 yuan, representing a decrease of 60% -80%.

Strengthening the promotion and application of rare earth, the maximum expansion of application of rare earth market, is the survival and development of rare earth industry, the driving force and the fundamental way out.

Involving separation of rare earth materials business Hengdian East magnetic back in the second half of last year, has been discontinued. Last year, rare earth materials business to achieve revenue 31,286,000 yuan, down 68.9 percent. "Rare Earth Materials business accounted for so little impact on the company's entire performance is also very small."

Hengdian East magnetic Deputy General Manager Wu Xueping told reporters, in addition to rare earth materials, the company's main business of permanent magnet materials sales from last until the first half of this year, has a very good performance.

"The application of rare earth materials in the market belongs to MSG level requirements, the absolute demand for small and application market is also not completely open." Said Qiu Zhicheng serious, it is imperative to strengthen the promotion and application of rare earth, the maximum expansion of application of rare earth market expand the application volume, this is the survival and development of rare earth industry, the driving force and the fundamental way out.

How to expand the demand for rare earths, Yuan Zhibin suggestions: First, actively introduce rare earth application technology; Second is to strengthen businesses and Research Institute, co-operation between schools, strengthen the enterprise's own R & D strength, the government may wish to give some tax concessions, but also actively encouraging upstream vertical integration of rare earth enterprises.

From the supply side, not only to combat poaching and smuggling of rare earth private dug, but also to promote the integration of rare earth big for the subsequent liberalization of export restrictions to prepare. Only a combination of demand-side and supply-side two aspects to digest the rare earth mine production capacity excess criticism.


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Recent rare earth permanent magnet plate fierce offensive launched in the secondary market, "states eight ministries rectification Rare black industry chain, the fifth Baotou Rare Earth Forum also revealed positive signals, many people changed the rare earth prices continued to rebound kinetic energy limited view, but that the price boom continued existence-than-expected. "Yesterday, the Shanghai a fund manager of the" Securities "reporter said.

However, the rare earth industry insiders has to "severe" to determine rare earth outlook. WTO rare earths will be the outcome of litigation or the end of the hammer, China canceled export quotas, tariff reductions as a high probability event. In order to avoid the rare earth industry to return to competing prices, reproduction "cabbage price" formula, government departments have been trying to build rare earth industry group, to influence the supply of Illegal production volume and structure, but in the interests of the face, the promotion of these initiatives extremely difficult.

Doubling of prices of heavy rare earth

Last week, the China Rare Earth Industry Association accelerate the preparation of rare earth price index climbed nearly 200 points. The index in December last year, about 234 points, lows in July 3, 2013, fell to 154 points, down 35%. Over the past two months, compared with lows of rare earth price index rose as high as 30 percent, of which praseodymium, neodymium, terbium, dysprosium, europium price rise of 100%.

It is understood that on August 7th day laborers Ministry and other eight departments jointly issued a document, the decision on the rare earth mining, production, circulation of illegal activities for a period of three months (8.15-11.15) blow special action. "Securities" contact the brokerage researchers said, and visited Ganzhou Rare Earth compared to rectify the situation, the special action of greater intensity, broader, ranging from illegal exploitation investigate illegal mining, smelting enterprises mineral source separation legality verification extended to trade enterprise is legitimate sources of rare earth products, and clean up the recovery and utilization of waste products of rare earth enterprises.

In addition, in recent years, the demand side of the fastest growing rare earth permanent magnet materials - praseodymium neodymium heavy rare earth elements dysprosium, terbium, etc. showing signs of shortage. On August 8, the fifth held Baotou Rare Earth Forum, China Rare Earth Industry Association Secretary-General Ma Rongzhang proposal, rare earth development "severity are different", with a focus on heavy rare earth exports gradually liberalized light rare earth production mandatory plan, while implementing purchasing and storage plan smooth price fluctuations.

Researchers aforementioned judgment, which to some extent the rest of the year may be strengthened expectations of purchasing and storage, supporting the next few rare earth prices remain high or continue upward.

Five percent difference is difficult to stop private mining

Who rejoiced in the capital on the occasion, in the just concluded rare forum, participants call for "the next five years, the rare earth industry will face more severe challenges" sound.

"Securities" reporter has learned that the national total of 45 rare earth mining permits, including 44 in Ganzhou Mining banner. Since September 2011, due to Chinese rare earth mining exceeded, Ganzhou Mining overall situation in the cut, which sells inventory. Is the case, in 2012 the South Mine prescriptive plan 13,400 tons mined, but at least when the actual production 37,000 tons, the South mine Qi Cheng products of unknown origin. Although prices have been falling during the first half of this year, but according to China Rare Earth Industry Association statistics, in the meantime rare earth minerals production has reached more than 90,000 tons, an increase of 29%, exceeding the annual production quota system.

"Black industry chain" does not change the rampant huge interest-driven dictates. In the aforementioned rare earth forum, industry insiders, the current informal mining companies need to pay resource tax, VAT and bear environmental costs, these costs together account for over half of sales price per ton of rare earth minerals, and do not need to pay any taxes private mining This difference can be easily obtained.

Admittedly, the current state of the private mining hit badly, "private mine owners everywhere, catch up on the jail." But Jiangxi Ganzhou a source close to the "Securities" reporter revealed that the vast majority of private mining in the mountains inside, the Government is very hard hit, are "people do not give officials do not study," only control rare stamps can be truly dedicated to combat. Before us is the result of Ganzhou Mining discontinued for 2 consecutive years, the province's separation of rare earth smelting enterprises mainly rely on the original inventory and raw materials purchased from other provinces. It reflects the current inventory at the end of the original is about exhausted, and increasingly difficult to purchase raw materials from other provinces. Over time, the industry normally or cause problems.

The person can not help but worry, the price of a storm on the negative effects have not been eliminated, the early application of rare earth materials rapidly shrinking market recovery is slow, overall demand is still sluggish. "This will restrict the price upside, even in mid-November after the joint reorganization, fear of return to earth prices decline."

"Old aristocracy" to new materials

Rare sword hanging litigation, but also to future price movements highly variable. March 13, 2012, the European Union, the United States and Japan to the WTO on China rare earth, tungsten, molybdenum export management measures of the "request for consultations." Meanwhile tripartite appeal said that China's 17 kinds of rare earths and tungsten, molybdenum and other metals export quotas and export taxes and other restrictive measures, in violation of the relevant provisions of the WTO. About raw materials in accordance with WTO antitrust litigation process, the longest in two years the litigation results will hammer. "Securities" reporter has learned that the end result or will come out, the industry generally believe that the probability of losing a large rare earth litigation. This also means that state on rare earth quotas, tariffs and other regulatory instruments are canceled.

Rare countries have clearly established a large group, asked the central enterprises to accelerate the pace of integration, in order to export quotas ahead of the layout. However, according to media reports, the current North Rare Earth Group Although clearly integrated approach, that is, Baotou Steel Rare Earth as a leader, but 12 to be still in the preliminary assessment of the combined company which is not true integration. Southern Rare Earth integration is more unfavorable, on the one hand the seven group compete with each other, who will tap delay is difficult to determine, the rare earth industry consolidation targets fall foregone conclusion.

Galaxy magnet insiders respect, at least for now it seems the government price regulation of rare earth limited role. Under the conditions of a market economy, prices should be determined by the market, in full consideration of environmental, resource costs, to ensure a reasonable profit earth. Baotou Steel Rare Earth Rare Earth executives in the forum proposed to establish long-term price stability mechanism of rare earth products, restore the user consumer confidence.

During the interview, the industry also suggested that the rare earth industry should increase scientific and technological innovation, promote the resources of rare earth minerals to convert high-quality refined products, to meet the rapid rise of the rare earth new materials and applications businesses.


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