Two tax adjustment drive market deployment of rare earth resources

Recently, China's rare earth fiscal policies to make significant adjustments, first abolish export tariffs on rare earths, followed by lower rare earth resources tax. Ministry of Finance recently issued a notice, to adjust export tariffs on some products, which contains the rare earths this one, and the adjustment effective from May 1, 2015. April 28 the State Council executive meeting, the implementation of rare earth, tungsten, molybdenum resource tax reform, promoting rationalize resources tax relationship.

August 7, 2014, WTO finds that Chinese export restrictions on rare earths and other products violate WTO rules, that China's export duties and quotas for its failure to protect the environment or resource grounds justified. In January 2015, the Commerce Department announced the cancellation of rare earth export quota system.

After the export duties and export quotas, resource tax reform could increase resource tax rate, reference to other mineral resources tax levied, and included tax range. If, after considering the liberalization of export tariffs, rare earth prices can back up the possibility of a higher "ad valorem" option calls.

Although China's rare earth WTO lawsuit lost, we can not continue to use tariffs to protect rare earth resources, but WTO litigation since 2011, our country has accelerated the pace of implementation of the integration of the whole industrial chain of rare earth.

Since the 2011 establishment of the Office of Rare Earth, our country has formed a rare office led the joint Ministry of Land Resources, the National Development and Reform Commission, Ministry of Commerce, General Administration of Customs and other six departments coordination mechanism. On the one hand, development of rare earth resources in a variety of offenses continued to maintain high-pressure situation, especially in southern areas of rare earth, after several rounds of crackdown, "black rare earth" substantially reduced, mining order effectively managed; on the other hand, accelerate the industry and mergers and reorganizations, Shoulong scattered mining permits in the market, the formation of the North earth, Ganzhou Rare Earth Rare Earth Group of six major focus of the main producing areas of different rare earth resources exploitation unified unified management. In addition, rare earth functional components to be integrated into the country's new materials industry development strategy to encourage downstream enterprises to actively carry out applied research, trying to cultivate a number of rare earth application of enterprise international competitiveness. From the strict management to market liberalization, experts point out that China's current management of rare earth resources, has achieved initial success, the rare earth resource tax can be appropriately adjusted, to ensure the supply of rare earth resources and services in the upgrading of China's economic transformation, which is conducive to promoting China RE downstream enterprises to reduce costs, increase R & D investment, promote the whole earth industry chain towards high-end level.

The industry believes that the rare earth resources end double reforms to strengthen management on the basis of norms to regulate the allocation of resources by market forces, which allows Chinese rare earth and downstream industries at the same time towards the end of more internationally competitive. However, we must clearly recognize that the current separation of rare earth smelting industry of serious excess capacity, upstream and downstream industries in the high-end products still have strong international competitiveness, in terms of development of new features rare behind the international frontier. On the whole chain of production and research of rare earth industry, the economic strength of China's rare earth field is still relatively low level. The liberalization of exports of rare earth and rare earth resources tax adjustment is able to usher in a new development opportunities for China's rare earth industry still depends on time and practice to verify.


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RE prices stabilize, expected resource tax fermentation

Festival of rare earth products prices remain stable. Praseodymium neodymium based rare-earth products prices of basic and pre-holiday flat. Now the Ministry of Finance for the resource tax reform is a long-term cost of rare earth products support. But the rare earth market weakness has been a long time, the transaction is still in the stage light, praseodymium neodymium price currently offer basically do anything in the short term rare-earth prices is still stressful.

Financial Post rare earth resource tax rate on taxable embodiment, the light rare earth by region to implement the applicable tax rate from 11.5 to 7.5% of the heavy rare earth resource tax applicable tax rate is 27%. Countries hope through resource tax reform efforts to raise taxes, thereby increasing mining costs and export prices, so as to achieve mineral protection. Today, the state clearly tax standards "in accordance with the principle of no increase in the corporate tax rate to determine reasonable", significantly lower than market expectations. "Tariff elimination + resource tax burden unchanged", affected, significantly reducing the cost of short-term pressure upstream mining enterprises, and downstream transmission, indirectly help to improve the downstream demand.


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Light rare earth market, low prices steady

Light rare earth market, businesses wait and see the market price held steady or slightly downward. Labor Day holiday immediately, the current business offer not enthusiastic, sometimes businesses inquiry neodymium oxide, praseodymium. Praseodymium neodymium products offer low steady, praseodymium neodymium metal prices quoted in the mainstream 38-38.5 Wan / ton, this week or praseodymium neodymium metal prices stable or fell slightly, have cut prices fell in the range of about 2-5 thousand Yuan / ton. Neodymium oxide, praseodymium week there is a business inquiry, but the actual transaction progress is not active, if low procurement inquiry Supplier spot shipments will not high, businesses offer basic and down slightly in 295,000 or one thousand floating 2-3. Dysprosium products market this week, the price of dysprosium oxide and dysprosium iron disadvantaged decline, the current market with the fall dysprosium, according to Ganzhou revealed a supplier of metal dysprosium now dropped from 3.23 million to 3.2 million yuan / ton.

Other oxides such as europium, terbium, and yttrium market is still sluggish unchanged, merchants offer lower aspect steady or little decrease, but has little room to fall europium oxide, plus businesses wait and see the effect the policy outlook, short-term market support vulnerable main stable. Praseodymium, neodymium, erbium oxide such as price more steady, there is price adjustment in the range of about $ 5,000 / ton, the less there is the case of substantial price cuts shipments, generally offer close to the mainstream market. Lanthanum, cerium products continued low steady, active shipping business.


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RE prices flat, trading deserted terbium oxide

RE market today offer businesses continue to follow the day before watching the market or slightly lower offer, yesterday China Rare Earth Industry Association section oxides offer also declined. Public attention resource tax policy at a State Council executive meeting yesterday gradually clear, from May 1 rare earth resources tax from the amount of taxable valorem, now bullish outlook, continue to wait, or offer down there, there Businesses that now prices are falling, the future see.

Currently praseodymium neodymium products prices stable and little decrease, praseodymium neodymium metal prices held steady in the low 380,000 yuan / ton, higher bit rates from 388,000 down to 385,000 yuan / ton. Shanghai, Ganzhou suppliers say oxide, praseodymium, neodymium steady at 29.4,29.5 yuan / ton, while businesses that price down from more than 295,000 to 291,000 yuan / ton, lower prices, traders said the Shanghai area are now willing to 29 yuan / ton, little appears goods, pre-holiday prices may further be maintained at the current level.

Europium, terbium oxide market is in the doldrums run, terbium oxide prices trading deserted, still offer about 3650 yuan / kg, europium oxide prices flat, some businesses slightly lower 30 yuan / kg to 1,620 yuan, or around holiday continued low steady.

Dysprosium products currently have equally steady fall, the higher offer is now before continuing loose down, the actual transaction price is low, the current offer dysprosium China Rare Earth Industry Association has been as low as 160-170 yuan / ton and, according to Ganzhou local businesses reflect dysprosium now only 1.61 million / ton, dysprosium iron mainstream prices fell to 170 yuan / ton and less.


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Rare earth prices steady, individual businesses small adjustments

Today, rare earth market conditions continue steady, individual businesses offer slightly adjusted, but the mainstream market mentality is still watching. Dysprosium products market, despite the bullish business outlook, but now the price of dysprosium oxide and dysprosium iron is still running low, businesses offer steady, the transaction price is still little decrease individual businesses. There are a number of market participants reflect dysprosium oxide low-cost resources only 161,162 yuan / ton, dysprosium iron Although there are still strong businesses offer 175 yuan / ton, but there are businesses that the actual transaction price is only 1.68 million yuan / ton about. RE market for May rose or whether to continue to decline, there is a business bullish outlook, but there are many in the industry say it is difficult to determine, businesses are watching.

Praseodymium neodymium products, currently praseodymium and neodymium oxide, praseodymium neodymium metal prices held steady mainstream, from the transaction price, demand still in the doldrums, but not much room for negotiation. Today, according to Ganzhou supplier said there praseodymium neodymium metal with a vote 380,000 yuan / ton, the actual transaction price is even lower. The dealer neodymium oxide, praseodymium today offer 298,000 yuan the previous day / ton dropped to 295,000 yuan / ton, while local traders said the actual transaction price of neodymium oxide, praseodymium about 29.3,29,4 yuan / ton.


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RE offer steady, businesses wait and see the market

RE market remains steady run today, watching the market side of the business side offer steady, deserted market trading atmosphere is not thick. Currently praseodymium, neodymium, erbium, gadolinium oxide prices remained steady mainly near Labor Day, with businesses wait and see attitude, and now the market is not movement.

Currently lanthanum, cerium, yttrium and more recent price category is no big change, low prices steady, continued weak market, as of 11:00 today cerium oxide overlean package still 11-11.14 yuan / kg slight fluctuations between, lanthanum oxide current market There are businesses that are still on about 1.2-1.3 yuan / ton, the market is not much improvement. Lanthanum, cerium, yttrium has been a major export product, but the current international and domestic oversupply, tax reform more difficult to change this situation, the future will continue to lower prices held steady, a slight decline is also still possible.

Dysprosium products temporarily low prices steady, businesses offer no adjustment in some areas of the business that dysprosium iron outlook optimistic that tax reform is expected or have a significant impact on prices, the latter may still dysprosium iron rose. Currently, according to the supplier of Ganzhou dysprosium iron with tickets still 1.7 million yuan / ton.


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This week the mainstream market slipped smoothly individual rare earth products

RE market as a whole this week show signs of stabilization, the transaction is not active, watching the market offer steady business. Some products demand is still poor, prices fell slightly, such as dysprosium, europium, terbium oxide. Light rare earth lanthanum, cerium steady market downturn, lower prices Nanshang Nan, Baotou area businesses offer more steady, while Baotou Rare Earth Carbonate companies reflects now with no votes 21000, recently stabilized operation, prices stabilized most important reason is record low. Released this week relative Ganzhou ionic rare earth ore prices fell slightly but appear. If there is no improvement in demand, prices will fall again rare. Current business policy has certain expectations, the price temporarily to get some support, but if the market outlook is expected to again and again can not be achieved, the price is still inevitable fluctuations.

Today, according to traders around Ganzhou reflect terbium oxide with tickets now only 3650 yuan / kg, lower than last week's offer of 50 yuan / kg, while prices have slipped europium oxide, europium oxide with tickets currently 1650-1700 yuan / kg the current price of europium oxide has been less than the terbium oxide nearly 2,000 yuan / kg, and before last September, europium oxide prices are much higher than the price of terbium oxide, changes in the structure of demand for rare earth prices caused the greatest impact.

This week, praseodymium, neodymium prices stable or slightly rose slightly, although merchants offer adjusted to reflect a little, but not much actual market demand fluctuations, current price and in fact the first two weeks or less. Dysprosium relative class market, although currently there is a business intends to offer flat, but the actual transactions light, high shipping difficulties, prices are still declining trend.


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RE offer steady mainly watching the market businesses

Today, the market price of rare earth remains steady mainly businessmen watching the market, and the prices of light. Ministry of Finance website recently announced clear from May 1 rare earth export tariffs will be eliminated. Back in January this year, the Ministry of Commerce in 2015 for the first time a regular press conference, the Ministry of Commerce spokesman Shen Danyang said that according to changes in domestic and international market development, and approval of the State Council, the Ministry of Commerce decided to January 1 from 2015 Japan began to cancel export quotas management, and retention of export tariffs, until May 2, 2015.

Clearly caused some businesses export tariff policy concerns, but to respond to the market is not obvious. At present, some businesses understand by now, some market participants to cancel export tariffs are not particularly concerned about "the profit earned or will lose a point when no less," some market participants believe that the abolition of tariffs will certainly market impact, but "the day before the offer or the continuation of the price will remain stable. Look what the situation late resource tax, up to now there is no official news." Market sentiment is slightly different, but the overall export duties cancellation did not cause too much impact on the current price, corporate watching the market, follow the market trading.

From January Commerce Department export duties reserved to notice May 2, which more than three months of rare earth market has experienced a wave of ups and downs, and higher gains only individual species alone abolish export tariffs, has been very difficult to RE market downturn much impact. May approaches, if the outlook is no other good policies, according to the current demand situation, the abolition of tariffs on exports of rare earths, you may cause a positive impact on exports, but the export of rare earth prices are still likely to face decline, international and domestic prices closer to the overall international and domestic oversupply situation will not change. If there are other good policy outlook as tax reform or purchasing and storage policy measures such as the introduction of salvage, rare earth prices are expected to rise even get support, but long term, it also depends on changes in the price of rare earth domestic and international acceptance and demand-side manufacturers of living space, the future can no longer rare earth prices spike.


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RE prices or stable or down, dysprosium transaction difficulties

Today, the market price of rare earth or stable or fall, demand for light, some market participants said that now businesses are more concerned about the impact of tax reform on the one hand of the market, offer steady, on the other hand the current market transactions do not satisfactory, especially dysprosium class products, transaction difficulties, businesses continue to offer steady or lower offer.

Dysprosium market, according to the supplier of Ganzhou dysprosium quote now down to 1.68 million from 1.65 million and 1,621,630 disclose now, like this it is difficult to supply low-cost shipping, while local traders agreed with this situation, but The businesses offer remained at 165 yuan / ton. Currently dysprosium with no votes 1.42 million yuan / ton, relatively 144,145 Wan continued to decline last week. Dysprosium sales are sluggish, dysprosium iron, like the bleak metal dysprosium, Dy current metal prices have been approaching 2.2 million yuan / ton.

Ganzhou Rare Earth Industry Association today announced the latest price Ganzhou ionic rare earth mine, relatively late March, the current ore price decline -1 at 5,000 yuan / ton, of which europium and yttrium-rich ore fell 10,000 yuan / tons, while China Rare Earth Industry Association will also be in europium and yttrium-rich ore prices down to 16-18 yuan / ton, and further confirms the dismal market demand.


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RE market remains stable, the price was not much room deadlocked Change

At present, the market is still running smoothly rare, praseodymium, neodymium reflects the business in addition to recent inquiries and quotations rose slightly, other oxides and metals holdings quotations stabilized. Currently praseodymium neodymium metal with a vote at 38.5-38.8 yuan / ton, the beginning of the week there is a business neodymium oxide, praseodymium 295,000 raised from the mainstream price around 29.7,29.8 yuan / ton, the price increase did not continue today, praseodymium, neodymium metal and oxide, praseodymium, neodymium recent pullback rates are more limited, more or less 10,000 yuan / ton, the associated companies reflects the recent NdFeB NdFeB downstream product prices continue steady, the impact of raw materials are not subject to market fluctuations.

Currently lanthanum, cerium products market, oxides and metals prices did not change much, according to a supplier Baotou said the current metal lanthanum, cerium metal with votes respectively 35000 and 36000 and the previous price than almost unchanged, Shanghai regional traders said the metal has been little change in recent Ganzhou lanthanum oxide, cerium offer also essentially flat, 4N lanthanum oxide price of 13,500 yuan / ton, 3N ceria still 11,500 yuan / ton. Dilute the recent package of cerium oxide prices continue to maintain a slight concussion, as of 14:00, cerium oxide prices have been at 11.06-11.15 yuan / kg fluctuations, so the price on the spot market traders, some less, unless a large amount cerium oxide price space is very limited.


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