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- Rare earth industry boom continued downwardPublished??2011??11??16??
- As the pre-price inflation, over-exploitation of rare earth resources, extraction and supply markets have continued to rise. The current economic downward trend apparent sharp drop in demand for the downstream industry, the rare earth industry boom of the downward trend is inevitable.
RE market seems to have never had a real calm. Since the second half of this year, the price of rare earth like riding a roller coaster, soaring to the highest point and then plummeted.
In response to the price crisis, Baotou Steel Rare-procurement notice published twice in a row. After the Baotou Rare Earth and Ganzhou Rare Earth Mining company also has announced the shutdown of one month in order to achieve 'balance supply and demand' purposes. However, this series of measures did not achieve the desired effect, anti-called 'lifting' of the move.
Under all the chaos of China's rare earth industry is facing what kind of prospects? How is the rare-earth price trend of the future?
Three months, down 40%
Affected by the rare-earth prices have soared in the first half, China's largest rare earth enterprises Rare-Earth earned pours.
However, since mid-July, prices began to earth continued to decline. Many varieties of rare-earth prices fell 30% to 50%. Cerium oxide, for example, in July the price had exceeded 20 yuan / ton, but the end of October the price of cerium oxide 130,000 14.5 yuan / ton, down by nearly 35%.
Influenced by the prices, the performance of the Baotou Rare Earth also fell. From the recently released three-quarterly terms, the Baotou Rare Earth three quarter net profit fell 22.78%.
Some analysts have pointed out that the price decline is due to lower initial sharp drop in demand soared and so caused. 'Rare earth prices fell the most fundamental reason is the lower demand, pre-rare-earth prices soaring to close down a large number of small and medium enterprises, many enterprises are turning to seek alternatives.' CRE Securities analyst Liao Yuling of the 'Science Times' correspondent says .
Some analysts to the 'Science Times' reporter, said rare earth prices is due to the recent tightening of bank lending, speculation of hot money most of the rare earths are loans, so the accumulation of business to seek recovery of funds, led to a large number of shipments of rare earth market prices.
Reporters learned that the rare-earth prices continue to decline also led to the Baotou Rare Earth High 119.91 yuan from the historical stock / shares fell rapidly, as of the end of October, the right to re-closed at 68.98 yuan after / shares, or up to 40.88%.
Big South should stop
Rare earth rare earth industry downturn has led to cut north-south trend. October 17, Baotou Steel Rare Earth announced, said that since October 19, 2011, the separation of their respective smelting enterprises have ceased production month. In the shutdown period, Baotou Steel Rare Earth to stop the corresponding separation of the smelting joint venture enterprise and external supply of raw materials.
October 20, as the main producing areas of the South's leading rare earth companies, located in Jiangxi Province Ganzhou Rare Earth Mining Company also announced that all of its mining and smelting companies began separating halted.
According to the company's announcement, the purpose is to stop production of rare earth in order to maintain market stability, rare earth products to avoid price volatility, the price of rare earth values and unity. However, the actual results did not meet expectations. Instead, the industry giant to shift the series of rare earth reserve, cut-off behavior as 'prop.'
Ye Xin Securities, told the researcher 'Science Times' reporter, since the implementation of the policy from the purchasing and storage, rare earth market was not affected, otherwise it will not announce the Baotou Rare Earth Separation smelting enterprises have ceased production. Under the current RE market, it is estimated that the market will not ignore the second purchasing and storage policies.
Then north and south stop is rare giant impact on the entire industry chain it?
Rare-Earth vice president, said Zhang Hui day, cut only a positive impact, can promote the healthy development of the whole industry.
CRE Securities analyst Liao Yuling also believes that the shutdown will not affect the rare-earth boom of the industry, light rare earth production and management is a necessity for many industries. Moreover, since most of the rare earth for export, the total demand for basic not decreased. RE shutdown will affect their business performance, but is not yet well calculated.
But there is a market analysis, the cut-off and protect the price is likely to result in the rare earth industry reshuffle. Lead to price spikes due to the early mining of rare earth resources over-exploitation of both volume and market supply continued to rise, the current economic downward trend apparent sharp drop in demand for the downstream industry, industry boom of the downward trend is inevitable.
War or started holding stability
For the rare-earth prices, the future trend, many analysts agree that, rare earth north and south have taken measures to stop production, taking into account the downstream industries reduced orders, demand is low, and traders selling and other factors, if there is no strong policy stimulus expected during the year of rare earth prices will continue to decline.
Regardless of the cut-off measure market prospects, the maintenance of stability of rare earth companies do battle has begun.
According to reports, invoices may be rare officially launched in November. All along, the rare earth and other bulk commodities, general invoices can be used. This leads to a very low threshold of rare earth trading, speculation prevailed. For interest-driven, corporate, personal and private indiscriminate digging serious over-exploitation of non-compliance, market excess accumulation, leading to a large number of 'non-votes' low impact of rare earth market. This is also the previous Rare-Earth 'rescue' of the move did not work one of the reasons.
Wikipedia information about rare earth industry analyst Du handsome soldier told the 'Science Times' correspondent, once the invoices introduced, no tickets have been sold a lot of rare earth products, can cause short-term market volatility, but in the long run, the rare earth market will become more standardized.
Another source said that recently the Ministry of Land Management Mineral Development thin Zhiping, deputy director of the 'China Mineral Resources Report
(2011), 'said after the press conference, for the moment of rare earth mining, management and reserve level issues, the Land Department will explore the establishment of rare earth trading center.
In this regard, the industry pointed out that the market lacks uniform standards and specifications, the rare earth trade center will have an impact in this regard, the market standard to establish a positive guide.
Outside the sound
Baotou This is the test of its market power. Rare earth production is concentrated, the market is very small, a large company can easily affect the supply and demand balance. Baotou Steel Rare-month shutdown will reduce this year's global market, the supply of rare earth about 5,000 tons.ZheJiang DongYang Strong Electron Co., Ltd
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