Policy boost product prices of rare earth stocks soared

It is understood that, in mid-June to 23 August light rare earth neodymium praseodymium oxide has gained 48% in heavy rare earth dysprosium and terbium oxide were up 104% and 87%.

Analysts believe that, with the thorough investigation of private mines nationwide began the year and indicators used, the majority of smelting separation plant is gradually shut down and stop shipments, the majority of raw materials inventory smelting separation enterprises will run out before October, will cause earth supply further tension. After a long time to inventory, the current domestic stocks at a low level, the formation of rare earth prices favorable support. Secondly, the recent national purchasing and storage, and a large group of rare earth integration solutions may exist launched, is expected to further boost the market sentiment.



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No right to speak at the low end products of rare earth products need to reduce the homogenization of competition

Development of rare earth industry, the resource advantages into economic advantages, has been a rare earth science and technology with industry goals. At present, the production technology and the transformation of "dual" role, to be known as "industrial vitamins" rare earth deep processing and application of the value continued to enlarge.

Recently, the Fifth China Baotou Rare Earth Industry Forum held in Baotou, Inner Mongolia. Chinese Academy of Engineering, China Rare Earth Industry Association, Chinese Society of Rare Earths chairman Gan Yong pointed out in his speech from the rational development of resources, clean production, efficient use and improve the international discourse and application of rare earth materials, end products, need for China's rare earth industry policy, industrial scale, upstream and downstream industries and REE with balance repositioning and thinking.

Market concentration scale industrial pattern

Rare earth is an important strategic non-renewable resources, in economic and social development, the rare earth is widely used new energy, environmental protection, aerospace and other high-tech fields. After decades of development, China's rare earth industry have been expanding, the current market has reached one hundred billion yuan, and the production technology has made tremendous progress.

Ministry of Industry and Information Technology Division Chen Yanhai raw material introduced more than two years, the state authorities have issued Administrative Measures for the implementation of the rare earth industry, trade access, pollutant emission standards and a series of policies and systems to improve the rare earth resource tax, the implementation of the rare earth industry, invoices, rare earth industry management system gradually improved.

To effectively combat illegal activities, in 2011 and 2012, twice the national order of the rare earth industry to carry out special rectification action, investigate illegal mining of rare earth and other violations of more than 600, the closure of illegal mining sites 14, investigated 14 cases of smuggling of rare earth, case value of over 400 million yuan; nationwide environmental inspection, rare earth industry added more than 40 billion investment in environmental protection. At present, China's rare earth industry long-standing resource Luancailuanwa, no plan and ultra-organized production and other phenomena have been effectively curbed, to further standardize the order of the rare earth industry.

It is understood that the past two years, China's rare earth industry to accelerate the pace of integration, has formed a number of sets resource extraction, smelting separation, processing applications, technology research and development as one of the large enterprise groups. Meanwhile, China's rare earth industry to accelerate applications, industrial scale and technological strength has increased markedly, significantly improved operational quality rare earth industry. 2011 and 2012, respectively, the national rare earth industry realized profits of 15.9 billion yuan and 10.8 billion yuan.

Ministry of Industry and Information Technology Institute of raw material industries CCID Institute Yuan Kaihong that, based on existing resources, occurrence and development of basic industries, China's rare earth raw materials and rough industry remained roughly three bases and two major north-south pattern of rare earth production system, And with the implementation of relevant state policies, as well as further concentration. But now, the international supply of rare earth market is also undergoing substantial changes in the pattern, as the U.S. company Mountain Pass mine molybdenum, Australia Weld Hill, NC company to speed up rehabilitation and construction of mining and other mining and smelting and separation of rare earth industry, light rare earth part of a project to restore production capacity has been achieved, the heavy rare earth project is expected to come on stream from 2016 to 2017, it will cause some impact on China's rare earth industry.

Product no right to speak at the low end market

According to reports, since the first quarter of this year, China's rare earth trade rebounded trajectory. Especially since February, the monthly export volume gradually rise. Analysts believe that the destocking slow development of alternative technologies and foreign competition in the context of rare earth projects, although a large number of rare earth group purchasing and storage and other means to control the use of market supply. But China's rare earth enterprises, especially private enterprises export will increase, leading to a substantial increase in export volume of rare earth.

For reasons known to the longer period of time, China's rare earth industry is facing resource in our hands, prices are controlled at the hands of others embarrassment. However, the recent years, China's rare earth industry, the introduction of high-density policies to improve the whole industry on rare earths from "industrial MSG" to "the world's major strategic resource" understanding. 2010, China's rare earth products prices rose steadily, in July 2011 reached the highest value. Followed by rapid price declines, and then fell stabilized, earth a "roller coaster" market.

And now, of rare earth price "roller coaster" market continues, the market is weak, there is no market price, business watch, to inventory, discontinued insured, etc., on the rare earth mining, smelting enterprises have a significant impact on separation of rare earth has moved from "Not for most people know "to" talk about rare pale. "

In fact, rare earth products from the international industrial chain, China's main products are mostly rare earth raw materials and roughing in the primary stage of development and other downstream applications and product development is slow, and the "heavy market, light technology, heavy hardware, software light" phenomenon still serious.

Yuan Kaihong that China's rare earth industry problems, in addition to over-exploitation of resources, ecological environment severely damaged, irrational industrial structure, and other traditional export smuggling of more serious problems, as well as in human resources, technology and other aspects of the short board, there are several reasons: First, industry concentration is low, excess capacity. Such as the current separation of rare earth smelting enterprises 99, capacity 399,000 tons / year, an average of less than 4,000 tons per possessions can, but in recent years as part of the new project on the problem of raw materials cut-off phenomenon. Second, the emerging alternative products, such as civilian areas instead of rare earth permanent magnet materials appear ferrite phenomenon. Third, the lack of high-end technology and equipment research and development, basic research is weak. As big as the world's first application of rare earth country, China's rare earth products are mainly in the low-end, high-end technology and equipment is heavily dependent on imports. Various alloys of rare earth equipment technology, nature, lack of performance studies, technical reserves is relatively scarce. Fourth, the international discourse is further weakened, as the international rare earth resources in the country to accelerate the development of domestic mineral resources of rare earth, rare earth supply side in the future will be significantly increased, and showed a pattern of supply diversification. Meanwhile, the implementation of some of the policies that will lead to decline in the proportion of China's market share, which could undermine the right to speak. Five is uneven application of rare earth elements, to a certain extent, affected the application of rare earth downstream market. Such as neodymium, europium, terbium, dysprosium, scandium in the optical, electrical, magnetic and other functional materials in an important role, but more a lack of content and yield, making it extremely scarce elements. And lanthanum, cerium, yttrium and other elements due to the relatively large natural reserves, the "excess" phenomenon.

Homogeneous competition against black industry to reduce

Gan Yong in his speech pointed out that the healthy development of China's rare earth industry, rational use of resources, variable resource advantage into industrial, economic advantage, really into sustainable, normalization of the track, there are still a number of issues need to be solved. As against black industry chain, the formation of large groups to form a stable and reasonable price mechanism, the implementation of LREE treated separately and so on.

China Rare Earth Industry Association Secretary-General Ma Rongzhang that because local protection and benefits, China's rare earth black chain is rampant, there is found difficult to combat difficult problem. In fact, in market economy conditions, fierce competition among enterprises, the market reflects the inherent economic laws and objective facts. Of rare-earth prices from the past "roller coaster" market, to the "black earth industry" illegal mining, tax evasion, low-cost rival, greatly disturbed earth of the normal market order, to the law-abiding companies brought great injury.

Marong Zhang said the first half of this year, China's rare earth industry, the majority of enterprises are facing losses, some enterprises in production, semi-shutdown state, the industry generally reflect a lack of confidence. Ma Rongzhang recommendations, and resolutely crack black chain, rare metals regulations as soon as possible. Moreover, there are other ways the severity of the future to take the focus control heavy rare earth exports gradually liberalized light rare earth production mandatory planning and supporting the introduction of appropriate management practices.

Yuan Kaihong suggested that the Government should focus on supporting application of rare earth link basic, strategic, research-oriented and reduce administrative intervention. Cultivating core competitive enterprises, accelerate the process of mergers and acquisitions, reducing the homogenization of competition. Strengthen the financial and brokerage services, and promote research with the official combined.

Southwest University of Finance and China Center for Financial Research Fellow Tangji Jiang believes that such a broad application prospects of rare earth strategic resources, should jump out of a profession, a single area of ​​thinking, that rare earth development strategy can not be limited in the region, should be placed in the whole country and even the world framework for consideration. In the production, not only to consider the production of upstream products and pricing, product chain should also consider further downstream integration and transformation. Meanwhile, rare earth enterprises vigorously promote access to financial markets, the use of financial instruments to participate in global resource pricing to go, so that industry self-regulation, to achieve real intensive use of rare earth resources.



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August 27 rare earth price quotes

August 27: RE market continues steady, the actual more sluggish downstream demand, buyers stocking cautious market, the price is relatively low. However, due to the market by purchasing and storage support, manufacturers offer remains strong.

Dysprosium oxide mainstream manufacturers tax price 220-240 yuan / ton, dysprosium iron mainstream manufacturers tax price 220-240 yuan / ton.

Praseodymium oxide mainstream manufacturers tax price 550,000-560,000 yuan / ton. Neodymium oxide 350,000-370,000 yuan / ton.

Lanthanum oxide 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 460,000-480,000 yuan / ton.

Europium oxide phosphor grade mainstream manufacturers tax price 4,900-5,100 yuan / kg. Terbium oxide phosphor grade mainstream manufacturers tax price 4,300-4,500 yuan / kg.



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Rare tea excessive levels of foreign giants in China procurement difficult

Because excessive rare earth content of tea, but no such standards abroad to purchase foreign investment in China has brought doubts.

Associated British Foods Group Greater China general manager Su Zhijie recently in an interview with reporters said that due to excessive pesticide residues, lack of traceability system and other issues, the company last year, the world's largest tea-producing countries - China's purchasing volume is less than the amount of its global sourcing 20% of the high cost of procurement lead in China in its 300 years of history, which owns Twinings tea corporate profit contribution rate is still less than 1%. In addition, rare limited edition is the standard set by China, China's tea enterprises can not.

Pesticide testing standards with international standards not only hinder multinational companies in China to carry out large-scale procurement, and also restricting the bulk of China's exports of tea from low-end to high-end raw tea transformation. This is also the last year, China's tea exports minus 2.82 percent of the important reasons.

Only China has a rare earth limits

By the end of July, Jiangsu Province Quality Supervision Bureau informed the second quarter of this year, the provincial quality supervision and inspection results, seven high tea brand tea Rare Limited (the total amount of rare earth oxides) project failed. October 2005, our country abolished GB9676 "tea health standards," tea health standards into GB2762-2005 "of contaminants in foods," management areas. According to GB2762-2005 "of contaminants in foods" provides a rare earth content is 2mg/kg, rare earth content in tea that is not more than two millionths.

The standard limit on earth, so that foreign investors who feel a bit strange, because this standard only in China, the EU, Japan and the United States and other major powers had no tea this standard. But they are on this issue very seriously.

"Chinese standards set by their own tea enterprises can not do." Su Zhijie said he first heard about the tea contains rare earth, do not understand how one thing, only to discover later that the tea plantation in China during naturally occurring .

Standard problems, but also become a Chinese tea enterprises export bottlenecks.

2012, made in China, tea about 175 million tons, exports 310,000 tons, down 2.82 percent. Native foods from China Import and Export Chamber of Commerce analysis, due to the problem of pesticide residue testing, exports to the EU, Japan, decreasing the number of tea. 2012, China's tea exports to the EU amount to 40,863.8 tons, down 5.2%; exports to Japan amount to 17,319.9 tons of tea, down 4.3%.

About Rare limited problems, more than one yuan tea enterprises responsible person told reporters that they are not eating tea leaves tea, tea is the content of rare earth rare earth containing tea leaves, not a tea containing rare earths.

Previously, according to the China Federation of Supply and Marketing Cooperatives, Hangzhou Tea Research Institute, National Tea Quality Supervision and Inspection Center jointly launched the process of brewing tea REE leaching studies show that through brewing, tea rare earth elements (the total amount of the oxide ) The total leaching rate of less than 20%, according to the Alzheimer's Association International (ADI) reference value, the current level of rare earth content in the brewing process tea samples were not sufficient to cause food security issues.

"The standards are too strict." An unnamed official said high tea, tea rare earth content of the background value 0.23 ~ 1.76mg/kg, standards are set at 2mg/kg, it is too harsh.

Currently, the limits are still rare tea controversy. And because no relevant foreign standards, making the bulk purchase of Chinese multinationals can not rush tea.

Lack of cost-push back system

In addition, because the lack of traceability system, but also to multinational corporations in China's tea purchases extremely difficult.

Su Zhijie said they come to China to purchase 15 years, last year, the global amount of £ 200 million procurement, procurement volume in China is not large, about 20% of global sourcing, mainly green tea. Other major from Sri Lanka, India and African countries procurement.

"Traders do not know more about their information on the home." Su Zhijie said, this is China's tea exports face a big challenge. Some foreign manufacturers of tea with traceability requirements, exporters need to provide this information and be able to withstand verified.

ABF Twinings tea global sourcing team consisted of six people, China is an area called Nick buyers responsibility. Nick will ask tea traders, these teas from which merchants buy. Typically in this session, traders will not answer, let alone how they are behind the fertilization and pest.

ABF had to bypass the trader, directly to large-scale tea base and farmers. "From the tea production base for tea relevant test data are very clear." Su Zhijie said that in recent three years, Twinings tea from China procurement pipeline changes, previously accounted for 100% of traders, now reduced to 60%; Future 3 years, ABF will completely bypass traders, from the base procurement.

"Such costs are very high, almost in one purchase." Su Zhijie said traders acquired by lot from the farmers, usually from several farmers, and buchoumai.

Actis currently meet the requirements of food procurement is not much Chinese tea industry base, mainly in Yunnan, Zhejiang, Anhui. "And these bases are required by the EU, all procedures have cost." Su Zhijie said the local government to help the tea industry base established traceability system and the data record is not much interest, they are more concerned about foreign-invested enterprises in the local investment and how much money, how much local procurement of tea.



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The rise of electric vehicle leasing industry remediation support rare earth prices

State Department to speed up the popularization of new energy vehicles to promote the State Council recently issued "on accelerating the development of energy-saving environmental protection industry opinions" that the government should give priority to buy official cars 1.8 liters (with) the following fuel economy to meet the requirements of small cars and new energy Auto select the best pure electric vehicles. "Opinions" should be made to accelerate the implementation of energy-saving and new energy vehicle technology innovation projects, and vigorously strengthen battery technology innovation, focused on solving the battery power system security, reliability and weight issues, enhancing the driving motor and core materials, electronic control and other key parts R & D and industrialization, supporting industries and accelerate the improvement of charging facilities, demonstration and extension of pure electric vehicles and plug-in hybrid cars, aerodynamic vehicles.

Rare earth prices rose since early June, industry consolidation support rare earth prices despite decline in prices during the first half, but into June since factors such as industry consolidation, rare earth prices rebounded sharply. Since 31 May to early August, the heavy rare earth rare earth sharply led the overall price. Aspects of heavy rare earth oxide, dysprosium rose 70.37 percent, up 46.15 percent terbium oxide; LREE aspect rose 25.26 percent neodymium praseodymium oxide, cerium oxide fell 5.9%. Rare nationwide campaign will be in full swing, unprecedented efforts in recent months of rare earth prices are still supported. Ministry on August 15 launched a three-month fight against rare earth mining, production, circulation special action illegal acts, will clean recycling of rare earth companies, find out the source and quantity of raw materials, sales, verification of illegal mining, production of clues and concentrate handling a number of typical cases. As Ganzhou region have begun as early as May hit the local "black earth" operation, intermediate traders reluctant to sell the opportunity, together with the Baotou Rare Earth Stop insured noticed, the heavy rare earth led sharply since June.



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