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Following in the southern Jiangxi Province, the whole crystal ring Baotou Rare Earth Co., Ltd., Baotou Steel Rare Earth Co., Ltd. New Lee halted, from 19, the Baotou Steel Rare Earth (Group) Co., Ltd. and other high-tech companies have begun to stop smelting separation production for a period of one month.

This is the world's largest manufacturer of rare earth products to stabilize prices, the latest measures taken.
Currently, the Baotou Rare Earth dominated the market in northern China about 90% of the light rare earth production, the light rare earth supply about 60% of the global market. Zhang Zhong, general manager of the company, said: "with the company before the cut-off, the whole group of smelting enterprises have all been cut separation."

Shutdown period, the Baotou Rare Earth will cease smelting separation of their respective companies, supply of raw materials outside of the cooperative enterprise.

"Companies had to cut more than 20 days a year maintenance, good prices this year, business has been in production, seeing the cold weather, do not repair too late." Zhang said.

Another stop to consider, is to reduce supply, stabilize the market. "The recent market continues to decline, the market sentiment on the sidelines, turnover is not active." Zhang said.

Zhang told reporters, even though the company's products offer the Baotou Rare Earth has not changed, but have different rate of price decline, some products sold in early July and the highest price compared with 20% down.

"Smooth supply and demand, have a stabilizing effect on the price, after all, the price performance of both supply and demand expectations and attitude." Zhang explained.

Benefit from the country's regulatory policies, in recent years, China's rare earth industry, production, to significantly improve the market last year, the industry achieved profitability in one fell swoop.

The first half of this year, rapidly rising prices of rare earth products in early July and the beginning of the price compared to light rare earth prices generally rose more than 3 times, the heavy rare-earth prices rose about 5 times. However, hoarding by some suppliers to sell goods, the economic situation and other factors, from late July onwards, rare earth prices began to fluctuate.

Reporters learned that as early as late September, Baotou Steel Rare Earth has launched a purchasing and storage plans, intentions to other countries designated by the plan of corporate purchasing and storage of praseodymium oxide, neodymium oxide products, to maintain prices. But enter October, price fluctuations to widen again.

"Full cut-off period will not be extended, as to how effective remains to be seen, but the cheap use of rare earth is gone, the market outlook is still optimistic about the rare earth market." Zhang said.

This year, some enterprises in southern China, due to run out ahead of the mandatory annual production plan, but unfortunately the selection cut. In this regard, Zhang said, Baotou Steel Rare Earth has been used in a reasonable allocation of production plans, production plans at present there are still remaining, cut-off is the company's active choice.

Part of the special prices that are still on the rare earth industry, the recent implementation of national consolidation, rare earth prices down not up, do not rule out some companies and individuals in the illegal production of rare earth products, these cheap products will hit the market.

In addition, a number of pre-production companies may have some stock, some traders are hoarding some products, selling these products, but also increased the downward pressure on prices of rare earth.

"Reducing production, prices will play a supporting role." Baotou Rare Earth Research Institute, former president of horses and other experts say friends from the past few years only in the rare-earth prices return to the value. Rare earth from the industry to market, are on the right track, enterprise strength was significantly increased, the whole society formed to promote the healthy development of rare earth industry, good atmosphere, which are the price of rare earth products will provide long-term trend support.

Experts have pointed out, any market must be regulated by the law of value. Previous high price indeed, even some high-end enterprise applications are whooped "can not afford", the current domestic and international economic uncertainty, fluctuations in the price of rare earth is inevitable.

"Rare Earth industry focus is the application of the product price is too high, it will hurt the business development of downstream applications, thereby affecting the upstream, the price is reasonable, to be conducive to long-term development, but not to the other extreme." Inner Mongolia Rare Earth Industry Association, Zhang Anwen said.

ZheJiang DongYang Strong Electron Co., Ltd