The hottest rare earth upstream launched a counter

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The upstream of rare earth has launched a "counterattack war" to limit production and support prices.

under the industry dilemma of a 20% drop in prices this year, the upstream of rare earth has started a counterattack war to limit production and support prices. On the evening of the 12th, North rare earth announced that the annual production of smelting and separation products would be reduced by 10% compared with the target volume of the 2015 Rare Earth total control plan issued by the Ministry of industry and information technology to the company. Coupled with the previous Limited sales of some suppliers, the rare earth index has increased by nearly 5% since mid September

the upstream production was limited and the sale price rose slightly in the short term

during the national day, a fire broke out in Baotou Huamei rare earth extraction workshop, a wholly-owned subsidiary of northern rare earth. Huamei's parent company announced on the 12th that it would stop production for rectification, or that it would be dragged down by the fire. Superimposed on the news, the price of some rare earth varieties on the market will be boosted in the short term

it is understood that northern rare earth accounts for nearly half of the supply of the overall market. "In the short term, the fire has a certain impact on production. At present, there are not only limited production but also limited quantity. The supply and shipment are relatively tight, the willingness to ship goods in the market is not large, and the price is generally high." An industry analyst told

ruidao metal data showed that from October 8 to yesterday after the festival, the prices of praseodymium and neodymium oxide, dysprosium, gadolinium and other varieties rose, among which the price of praseodymium and neodymium oxide rose from 305000 to 320000

however, the actual impact of fire on the industrial chain is not significant. Shanghai Securities News learned that according to the current maintenance and resumption of production of Huamei, it is expected to affect about 3000 tons of oxide production during the year, accounting for about 3% of the government's plan. The resumption period is not long, and the corresponding praseodymium and neodymium elements are about 600 tons, which is significantly less than the 10% oxide mandatory production plan mentioned in the announcement, that is, 5000 tons

plus there is a certain inventory at present, downstream buyers are not in a hurry to purchase. According to the data of securities companies, the inventory of praseodymium and neodymium, the most popular light rare earth, is about several thousand tons, while the inventory of lanthanum and cerium is more than three years. People in the non-ferrous industry told that buyers were in a strong wait-and-see mood. The price of raw materials pushed up production costs, and some enterprises' orders would be suspended

rare earth is not "rare" after the export liberalization.

this year, China's rare earth industry issued three major policies, which made the export volume of rare earth surge and the price all the way down. In January, China's 17 year old export quota restrictions were lifted; In May, rare earth export tariffs were cancelled; In the same month, the rare earth resource tax changed from "ad valorem" to "ad valorem"

the elimination of quota restrictions and tariffs has opened the door to China's rare earth exports, and the resource tax reform has also greatly reduced the cost burden of enterprises. According to the data released by the General Administration of Customs on the 13th, China exported 234million tons of rare earth in the first September, up 16% year-on-year. In July, the export volume doubled from the same period last year, reaching the highest in four years. Insiders told that since many private mine exports have not been included, the actual exports may be much larger than the official statistics

although the volume increases, the price is low. The cumulative total export amount in the first September was 6% less than that in the same period last year. Year to date 17. The price of rare earth has fallen by 20% due to the standard configuration of Jinan experimental machine

overcapacity has emerged in China. It is understood that at present, 80% of the rare earth miners in the South have closed their factories, and some have even begun to take long holidays. The cost of northern producers is relatively low, but under the dilemma of weak consumer side, it is also difficult to escape the excess pressure, resulting in this round of supply reduction

in fact, reducing production and raising prices is not a "new trick" of the industry. As early as 2012 and 2013, there were leading enterprises holding together to keep warm and protect themselves. However, securities analysts pointed out that this can not solve the problem of the black industrial chain. The contradiction between the national mandatory plan and the actual situation is gradually moving towards assuming that we directly measure this signal, and some stress parts naturally exist

in addition to the efforts of the industry to save itself, the rare earth chaos still needs more industrial supporting policies to be eliminated and rectified

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