The hottest rare earth market enters the upward ch

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The rare earth market entered the upward channel

in mid November, the rare earth market changed its continuous downward trend since the fourth quarter of this year and began to stop falling and rebound. Up to now, the price of rare earth oxide has increased by about 2% over the beginning of the year; Rare earth metal prices rose and fell year-on-year, with fluctuations ranging from 3% to 10%

according to the analysis of insiders, with the in-depth implementation of the national special supervision and the crackdown on underworld activities of local governments in major producing areas, the acts of unplanned and unplanned production, undocumented exploration and mining, and illegal trading of rare earth products have been curbed. At the same time, large enterprise groups are willing to limit production, and the market supply is becoming increasingly tight. It is expected that rare earth prices are expected to continue to rise steadily before the end of the year

According to Hu Yaobing, general manager of Inner Mongolia Wumart polishing materials Co., Ltd., since this year, the national rare earth market has been in the doldrums as a whole, downstream demand has been weak, and manufacturers have rarely shipped. During this period, the market only experienced a round of rise from May to June, but it was also a flash in the pan. Since the fourth quarter, the rare earth market has entered a volatile downward channel, and the downward price exploration has not boosted purchasing enthusiasm, and merchants generally hold a wait-and-see attitude. However, since mid November, the market has gradually warmed up, and some products have fully hit the bottom and rebounded, with prices rising steadily

up to now, the average ex factory price of representative rare earth products is: in 2015, China's non-ferrous metals import and export 145 million tons of raw materials rare earth carbonate 23000 yuan (ton price, the same below), cerium oxide 13300 yuan, lanthanum oxide 12800 yuan, praseodymium oxide 397500 yuan, neodymium oxide 311500 yuan, praseodymium neodymium oxide 316000 yuan, dysprosium iron metal 1162500 yuan, neodymium 397500 yuan, praseodymium 66000 yuan, dysprosium 1625000 yuan. In particular, the price of rare earth oxides increased by about 2% over the beginning of the year

domestic rare earth prices stabilized and rebounded, and export prices were also supported

according to Dou Xuehong, chief expert of China Rare Earth Information Center, the average price of China's rare earth products exported to the United States has risen from $824 in July to $11980 in mid November

the decline of multiple tensile strength RM is driven by smaller factors. Why does the rare earth market heat up

Liu Jiangang, chairman of Carlos rare earth environmental protection Pigment Co., Ltd., believes that this aspect is related to the recent special rectification of rare earth industry order launched by relevant national departments and local governments. The rapid reduction of illegal production helped to stop the decline and rebound of rare earth prices

it is reported that from October 30 to November 30, eight supervision teams composed of the Ministry of industry and information technology, the national development and Reform Commission, the Ministry of natural resources and other ministries and commissions went to various places to carry out special supervision actions against eight provinces and regions, including Inner Mongolia, Jiangxi, Jiangsu, Fujian, Hunan, Guangdong, Guangxi, Sichuan, which are the main producers of rare earth. Prior to this, six departments in Jiangxi, a major rare earth production province, jointly issued a special action document on rare earth crackdown, and conducted special supervision from September 2018 to January 2019. Due to the increasingly obvious regulatory effect, the supply of raw ore resources in the upper reaches of the rare earth industry shrank, stimulating the rising expectations of downstream products

on the other hand, the rise in rare earth prices is also related to environmental protection inspectors nationwide. The particularity of rare earth production, especially the radiation hazards of some products, makes the environmental protection supervision stricter. Under the strict inspection of environmental protection, rare earth separation enterprises in many provinces have stopped production, resulting in a decline in the market launch of rare earth oxides and a strong price of rare earth products

in the interview, we also learned that the price support of enterprises is also an important factor in the rise of rare earth prices

in early November, at the critical moment when the rare earth price almost fell below the cost price, large groups maintained strong stability. Cost support and enterprise price support made the product prices represented by rare earth oxides and some functional materials reverse upward

the outlook may continue to improve

Liu Jiangang said that the special supervision action led by the Ministry of industry and information technology to rectify the order of the rare earth industry in eight departments will continue until November 30, and most of the local cooperation and rectification action plans issued by the provinces and regions of the main rare earth producing areas will extend to 2019. This supervision shows the characteristics of strong pertinence, comprehensive scope of verification projects and wide range of regions involved. Therefore, the scope of rare earth production enterprises will be expanded, the supply will be difficult to enlarge in the short term, and the later market may continue to improve

Hu Yaobing is also optimistic about the future market of rare earth. He said that at present, the end of the year is approaching. As a rule, the downstream magnetic material enterprises ushered in the peak procurement season in the fourth quarter. Functional material enterprises and relevant traders purchase and replenish inventory. The circuit between the main body and the dynamometer is connected by plugs, which may promote the further rise of rare earth prices. In addition, at present, rarity enables all participants in the value chain, from engineers, membrane designers and manufacturers to project owners, to reap success. The price of soil is relatively at the bottom, and there is sufficient upside space

"in recent years, under the strong supervision of the rare earth industry by many departments of the state, the market price of rare earth has basically achieved a rational return, putting an end to the ups and downs of the market over the past years, which are not conducive to the production and operation of enterprises. In the future, with the gradual release of market risks, the fundamentals of supply and demand are expected to adjust, and the price will rise steadily and slightly, boosting the rare earth market back to normal." Hu Yaobing said

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