China again increased stockpiles of rare earths on, to increase prices

Bildschirmfoto 2014-04-11 um 17.37.07

Of Hongpo Shen - 10. April 2014

A look at the recently opened Baotou Rare Earths Products Market (Baotou Rare Earth Products Exchange) as well as the Rare Earth Stock Exchange makes it clear, dass die Preise für Rare earth in China vor kurzem an Stärke gewonnen haben. This development is supported by the Chinese State Bureau of Material Reserve (SBMR) and initiate a new round in the storage of rare earth reserves its outreach efforts.

The State China Securities Journal reported on 9. April, that an agreement between the SBMR reserves and some large producer of rare earths (including China Minmetals Rare Earth, Inner Mongolia Baotou Steel Rare-Earth, Chinalco Rare Earth, Rising Nonferrous Metals Co Ltd, Ganzhou Rare Earth und Xiamen Tungsten Co.) was signed. This will lead to, that over 13.000 added additional tons of rare earths to the strategic reserves of the country, at a purchase price of about expected 10% is above the market level - slightly above the average for the last six months.

Basierend auf dem Volumen der nationalen Reserven werden die Top Unternehmen/Produzenten von Seltenen Erden dazu gezwungen sein, ihre Reserven one ca. 30% increase. This is short term let with security prices rise of rare earth. It is therefore expected according to market participants, that prices for rare earths in China will rise in the coming weeks against the backdrop of the impending increase in state reserves.

Although large Chinese high-end NdFeB manufacturers for this year to a level of 70%-80% was, was the demand for rare earth materials, especially in the area of ​​the rare earth permanent magnet sector, due to severe overcapacity only 30%-40%. However, it is expected, that the demand for rare earth permanent magnets in China is expected to 15% on 126.000 Tons by the end of the year, according to a research report by Shenyin Wanguo Securities (SWS), a leading Chinese securities companies, will grow.

The trading prices for praseodymium neodymium, Ceroxid und Europium-Oxid an der Baotou Rare Earth Products Börse (Baotou Rare Earth Products Exchange), Already by 320 Yuan/kg auf 364,7 Yuan/kg, 19,5 Yuan / kg auf und 22.02Yuan/Kg 4000 Yuan/kg auf 4571 Yuan / kg in the last nine trading days, since the 28. March, increased. Laut Jia Yinsong, from the Ministry of Industry and Information Technology (Ministry of Industry and Information Technology) "Is expected to be the Baotou Rare Earth Products Exchange (Baotou Rare Earth Products Exchange) regulate the rare earth market in the country, improve the way in which prices emerge and promote the development of industry.

In recent decades, the export prices of China's rare earths were due to the lack of environmental protection costs, resulting in the production of rare earth, comparatively low. China will proactively introduce the implementation of a series of new tax measures in this highly polluting sector, to conserve the environment. The environmental control legislation has officially begun and we expect Chinese experts, that this will be implemented next year. China's latest step in, a new environmental tax on rare earths from 2015 introduce, will push the prices further.

As the world's biggest producer of rare earths, China supplies more than 90% the global supply. Despite the WTO ruling, China forcing their export quotas not to cut, is the world's dependence on China's rare earth exports consist remain.

The rare-earth market is a small market, however, is critical to ensuring the sustainable development of high-tech industries and national defense. The WTO ruling has forced China, to reconsider its policy measures to regulate with respect to the rare earth industry.

There are Association of Chinese Rare Earth Industry now studied the WTO report and evaluates its impact on the rare earth industry in the country from. The association will also host the 2014 International Conference on Rare Earth Resources and Marktet in Guangzhou, China vom 16-18 June 2014 be, which offers a welcome opportunity, to deal with the latest Chinese rare-earth industry policy.

Those: Shen, Hongpo (10. April 2014) China’s new round of rare earths stockpiling to boost prices.

http://investorintel.com/rare-earth-intel/chinas-new-round-rare-earths-stockpiling-boost-prices/

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