Since June last year, rare earth prices have been falling. On September 6, the price of antimony oxide was RMB 425,000/ton, a drop of 43.7% from the price of RMB 755,000/ton in early January.
Not only cerium oxide, but also rare earth oxides such as cerium oxide, ytterbium oxide, and ytterbium oxide have significantly decreased. The price of rare earth metals even fell even further. Metal bismuth, metal bismuth, metal bismuth, metal bismuth, metal bismuth and metal bismuth all fell sharply. Among them, the highest drop was in metal yttrium, which was 48.3%.
Corresponding to the sharp decline in the prices of various rare earth products, rare-earth companies such as Baotou Steel Rare Earth Co., Ltd., and Xiamen Tungsten Industry Co., Ltd. were slightly stretched. Due to the weak downstream demand, the Xiamen Tungsten Industry reported unsatisfactory results in the first half of the year. According to the semi-annual report of 2012, the Xiamen Tungsten Group's operating income for the first half of the year was 4.529 billion yuan, an increase of 9.01% year-on-year; total profit was 613 million yuan, a year-on-year decrease of 20.05%. Baotou Steel's rare earth also failed to stand alone. According to the report, the company’s sales revenue in the first half of the year was 6.297 billion yuan, up 5.32% year-on-year; operating profit was 2.412 billion yuan, down 37.82% year-on-year; and the net profit attributable to shareholders of the listed company was 15.7 Billion yuan, down 20.60% year-on-year; basic earnings per share of 0.65 yuan.
"Not only rare earth, any product prices are ups and downs are market behavior. If oversupply, it must go down. If you are tight, certainly rising, are all periodic ups and downs." Zhang Zhong, general manager of Baotou Rare Earth, told "Excellence" reporter, "The rise and fall in rare earth prices is related to the large international economic environment. Under the current sluggish international economic situation, the demand for rare earth has shrunk."
The pattern is very different because China’s rare earths are subject to a quota system, and countries such as Europe, America, and Japan want to appeal to the WTO several times in hopes that China will open a low-priced rare earth market. However, although rare earth quotas rose slightly in 2012 compared with 2011, the demand was in a state of malaise. According to the China Customs data, the volume of rare earth exports from January to July 2010 decreased by 36.7% year-on-year. In 2011, the total export quota for rare earths totaled 30,184 tons, but in 2011, the total export volume was 18,600 tons, accounting for only 61% of the quota.
With the market's expected 2012 global economic downturn, which will lead to a weaker demand for foreign rare earths, the difference is that the 2012 annual quota has increased slightly by 2.7% from 30,184 tons in 2011. On August 22, the Ministry of Commerce of the People's Republic of China issued the second batch of rare earth export quotas for 2012, which collectively issued a quota of 27122 tons of light rare earths and 3874 tons of medium- and heavy-earth rare earths, which totaled 30,996 tons.
At the same time, countries such as Europe and the United States have also changed their previous strategy of pulling out swords, but they have accelerated self-sufficiency in rare earths. Rising production of rare earth mines in the United States and Australia has made the situation even more severe. The US Molybdenum Company previously announced that it plans to invest US$895 million to increase its annual production capacity of rare earths from 20,000 tons to 40,000 tons, while its output last year is still less than 5,000 tons, and its global share will also increase from 4% to more than 30%.
Australia’s Lynas Corp also announced that it will build a smelter in Malaysia in two stages. Large-scale mass production will occur in 2013-2014. The production capacity of rare earth oxides in the first and second phases will reach 2.18 million tons, and the production cost will be approximately It is between 16,000 and 17,000 U.S. dollars.
Qi Lei analyst Yan Lei predicted that due to the impact of soaring rare earth prices in 2011, overseas rare earth mines began to restart, the release of production capacity faster than some domestic expectations. The status of the major resources of rare earth resources in the next three years will be strongly impacted. The global market share of China's rare earth smelting products may drop from 95% in 2010 to 63% in 2015, and the absolute quantity may drop from 120,000 tons to 93,000 tons.
"We are also very concerned about the mining of some mineral resources abroad." Zhang Zhong said, "It should be said that the large-scale exploitation of foreign mineral resources is first and foremost adjustment of the supply and demand structure. In the future, the pattern of world rare earth supply and demand will certainly change. At the same time, because of rare earth With the rise in prices, the commercial viability of rare earth mining abroad has also increased."
In fact, in this rare earth campaign, rare earth companies in China and China seem to have enjoyed a moment of glory, but they never took the upper hand. As early as 2005, China controlled more than 95% of the world's supply of rare earth resources, but it succeeded in winning at low prices. Japan and the United States relied on technological advancement advantages in the field of new rare earth materials to obtain rare earth industries. Excess profits on the chain.
Since 2010, China has frequently introduced the integration policy of the rare earth industry, trying to rely on the power of monopoly to substantially increase the price of rare earth resource products to obtain more profits in the rare earth industry chain. This resulted in the resumption of overseas rare earth mines, and the rapid release of production capacity, in the next few years or will significantly reduce the market space for domestic rare earth resources products.
In 2011, despite the supply of monopolistic advantages, and with the intensive introduction of industrial policies, China’s rare earth raw material prices have risen by several dozen times in half a year. However, due to the congenital defects of the Chinese rare earth industry and the impact of external supply, the prices of rare earth raw materials have dropped by more than 60% since the second half of 2011. In this game of interest, China's rare earth industry did not take the lead.
The influence of storage and storage Although the global mining of rare earth mines restarted, the pattern of rare earth resource supply has returned to the trend of the 1990s. However, in the face of competition from overseas companies, it is unlikely that the Chinese rare earth industry will return to the low-cost dumping road. Therefore, China's rare earth industry must make major adjustments to cope with the new situation. It is a good idea to start a national purchasing and storage strategy.
The discussion of rare earth storage began in May last year. At that time, the State Council issued the "Several Opinions on Promoting the Sustainable and Healthy Development of the Rare Earth Industry." It clearly stated that a strategic reserve system for rare earths should be established. It will be based on a combination of national reserves, corporate (commercial) reserves, physical reserves, and resources (land) reserves. Establish a rare earth strategic reserve.
In July, the first national strategic acquisition and storage of rare earths started. The principle of storage and storage is to select products that have important applications in the future but are now scarce, and to make strategic product reserves when the market price is low.
Shortly afterwards, Xiamen Tungsten Co., Ltd., the State Storage Material Regulatory Center, China National Color Co., Ltd., Sichuan Jiangtong Rare Earth Co., Ltd., Baotou Steel Rare Earth, Gansu Rare Earth New Material Co., Ltd., and Inner Mongolia Gaoxin Holdings Co., Ltd. jointly invested in the establishment of a rare earth transaction. The.
Although all parties in the market predict that the price of rare earth will be boosted due to the progress of storage and storage. However, Zhang Zhong believes that the impact on the market will not be great. “The country proposed to collect reserves at the time, and it was in line with the original intention of protecting resources because rare earths were important raw materials for strategic emerging industries.†Zhang Zhong said, “The establishment of a strategic reserve mechanism for rare earth resources is not to centralize the collection and storage of many mineral resources. Reserves are not large compared to supply."
In the past, China’s largest competitive advantage in the field of rare earths was low-cost and resource monopolies, namely the scarcity of resources and the cheapness of resources. Now, the country needs to support the rare earth industry from the upstream to the downstream, to the development of high-tech functional materials.
Although in recent years, China's rare earth has made great progress in the extension of its industrial chain. In the downstream of the rare earth industry, that is, the functional applications of rare earths, there has also been great development. However, “some very high-end applications have a big gap, which is beyond the scope of the rare earth industry. In fact, we still have a gap with the international market in high-end manufacturing and high-end high-tech products. "Zhang Zhong introduced," If you can make breakthroughs in the technology of rare earth high-tech applications, will play a very important role in the reflection of rare earth prices, improve efficiency."
Not only cerium oxide, but also rare earth oxides such as cerium oxide, ytterbium oxide, and ytterbium oxide have significantly decreased. The price of rare earth metals even fell even further. Metal bismuth, metal bismuth, metal bismuth, metal bismuth, metal bismuth and metal bismuth all fell sharply. Among them, the highest drop was in metal yttrium, which was 48.3%.
Corresponding to the sharp decline in the prices of various rare earth products, rare-earth companies such as Baotou Steel Rare Earth Co., Ltd., and Xiamen Tungsten Industry Co., Ltd. were slightly stretched. Due to the weak downstream demand, the Xiamen Tungsten Industry reported unsatisfactory results in the first half of the year. According to the semi-annual report of 2012, the Xiamen Tungsten Group's operating income for the first half of the year was 4.529 billion yuan, an increase of 9.01% year-on-year; total profit was 613 million yuan, a year-on-year decrease of 20.05%. Baotou Steel's rare earth also failed to stand alone. According to the report, the company’s sales revenue in the first half of the year was 6.297 billion yuan, up 5.32% year-on-year; operating profit was 2.412 billion yuan, down 37.82% year-on-year; and the net profit attributable to shareholders of the listed company was 15.7 Billion yuan, down 20.60% year-on-year; basic earnings per share of 0.65 yuan.
"Not only rare earth, any product prices are ups and downs are market behavior. If oversupply, it must go down. If you are tight, certainly rising, are all periodic ups and downs." Zhang Zhong, general manager of Baotou Rare Earth, told "Excellence" reporter, "The rise and fall in rare earth prices is related to the large international economic environment. Under the current sluggish international economic situation, the demand for rare earth has shrunk."
The pattern is very different because China’s rare earths are subject to a quota system, and countries such as Europe, America, and Japan want to appeal to the WTO several times in hopes that China will open a low-priced rare earth market. However, although rare earth quotas rose slightly in 2012 compared with 2011, the demand was in a state of malaise. According to the China Customs data, the volume of rare earth exports from January to July 2010 decreased by 36.7% year-on-year. In 2011, the total export quota for rare earths totaled 30,184 tons, but in 2011, the total export volume was 18,600 tons, accounting for only 61% of the quota.
With the market's expected 2012 global economic downturn, which will lead to a weaker demand for foreign rare earths, the difference is that the 2012 annual quota has increased slightly by 2.7% from 30,184 tons in 2011. On August 22, the Ministry of Commerce of the People's Republic of China issued the second batch of rare earth export quotas for 2012, which collectively issued a quota of 27122 tons of light rare earths and 3874 tons of medium- and heavy-earth rare earths, which totaled 30,996 tons.
At the same time, countries such as Europe and the United States have also changed their previous strategy of pulling out swords, but they have accelerated self-sufficiency in rare earths. Rising production of rare earth mines in the United States and Australia has made the situation even more severe. The US Molybdenum Company previously announced that it plans to invest US$895 million to increase its annual production capacity of rare earths from 20,000 tons to 40,000 tons, while its output last year is still less than 5,000 tons, and its global share will also increase from 4% to more than 30%.
Australia’s Lynas Corp also announced that it will build a smelter in Malaysia in two stages. Large-scale mass production will occur in 2013-2014. The production capacity of rare earth oxides in the first and second phases will reach 2.18 million tons, and the production cost will be approximately It is between 16,000 and 17,000 U.S. dollars.
Qi Lei analyst Yan Lei predicted that due to the impact of soaring rare earth prices in 2011, overseas rare earth mines began to restart, the release of production capacity faster than some domestic expectations. The status of the major resources of rare earth resources in the next three years will be strongly impacted. The global market share of China's rare earth smelting products may drop from 95% in 2010 to 63% in 2015, and the absolute quantity may drop from 120,000 tons to 93,000 tons.
"We are also very concerned about the mining of some mineral resources abroad." Zhang Zhong said, "It should be said that the large-scale exploitation of foreign mineral resources is first and foremost adjustment of the supply and demand structure. In the future, the pattern of world rare earth supply and demand will certainly change. At the same time, because of rare earth With the rise in prices, the commercial viability of rare earth mining abroad has also increased."
In fact, in this rare earth campaign, rare earth companies in China and China seem to have enjoyed a moment of glory, but they never took the upper hand. As early as 2005, China controlled more than 95% of the world's supply of rare earth resources, but it succeeded in winning at low prices. Japan and the United States relied on technological advancement advantages in the field of new rare earth materials to obtain rare earth industries. Excess profits on the chain.
Since 2010, China has frequently introduced the integration policy of the rare earth industry, trying to rely on the power of monopoly to substantially increase the price of rare earth resource products to obtain more profits in the rare earth industry chain. This resulted in the resumption of overseas rare earth mines, and the rapid release of production capacity, in the next few years or will significantly reduce the market space for domestic rare earth resources products.
In 2011, despite the supply of monopolistic advantages, and with the intensive introduction of industrial policies, China’s rare earth raw material prices have risen by several dozen times in half a year. However, due to the congenital defects of the Chinese rare earth industry and the impact of external supply, the prices of rare earth raw materials have dropped by more than 60% since the second half of 2011. In this game of interest, China's rare earth industry did not take the lead.
The influence of storage and storage Although the global mining of rare earth mines restarted, the pattern of rare earth resource supply has returned to the trend of the 1990s. However, in the face of competition from overseas companies, it is unlikely that the Chinese rare earth industry will return to the low-cost dumping road. Therefore, China's rare earth industry must make major adjustments to cope with the new situation. It is a good idea to start a national purchasing and storage strategy.
The discussion of rare earth storage began in May last year. At that time, the State Council issued the "Several Opinions on Promoting the Sustainable and Healthy Development of the Rare Earth Industry." It clearly stated that a strategic reserve system for rare earths should be established. It will be based on a combination of national reserves, corporate (commercial) reserves, physical reserves, and resources (land) reserves. Establish a rare earth strategic reserve.
In July, the first national strategic acquisition and storage of rare earths started. The principle of storage and storage is to select products that have important applications in the future but are now scarce, and to make strategic product reserves when the market price is low.
Shortly afterwards, Xiamen Tungsten Co., Ltd., the State Storage Material Regulatory Center, China National Color Co., Ltd., Sichuan Jiangtong Rare Earth Co., Ltd., Baotou Steel Rare Earth, Gansu Rare Earth New Material Co., Ltd., and Inner Mongolia Gaoxin Holdings Co., Ltd. jointly invested in the establishment of a rare earth transaction. The.
Although all parties in the market predict that the price of rare earth will be boosted due to the progress of storage and storage. However, Zhang Zhong believes that the impact on the market will not be great. “The country proposed to collect reserves at the time, and it was in line with the original intention of protecting resources because rare earths were important raw materials for strategic emerging industries.†Zhang Zhong said, “The establishment of a strategic reserve mechanism for rare earth resources is not to centralize the collection and storage of many mineral resources. Reserves are not large compared to supply."
In the past, China’s largest competitive advantage in the field of rare earths was low-cost and resource monopolies, namely the scarcity of resources and the cheapness of resources. Now, the country needs to support the rare earth industry from the upstream to the downstream, to the development of high-tech functional materials.
Although in recent years, China's rare earth has made great progress in the extension of its industrial chain. In the downstream of the rare earth industry, that is, the functional applications of rare earths, there has also been great development. However, “some very high-end applications have a big gap, which is beyond the scope of the rare earth industry. In fact, we still have a gap with the international market in high-end manufacturing and high-end high-tech products. "Zhang Zhong introduced," If you can make breakthroughs in the technology of rare earth high-tech applications, will play a very important role in the reflection of rare earth prices, improve efficiency."
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