SHANGHAI, Sept. 5 (SMM) – Following gains during the past 6 months, rare earth products prices fell differently entering July. Polishing powder prices, however, remained at high levels. Combining with production halt and lower output at glass and crystal industries downstream due to environmental inspections, market transaction of polishing powder became extremely sluggish during August.
SMM survey shows polishing powder prices fell by nearly 20% starting from July 1st. This, however, still left polishing powder prices at high levels. And as downstream consumers of polishing powder were mainly small workshops which generated severe pollution, the environmental inspection this year led to production halt at many of these producers.
As a result of above two main reasons, transactions of polishing powder turned sluggish in August, with output at most polishing powder producers being cut by over 60%. For example, a large-scale polishing powder producer in Shandong reported a 66% cut in output in August. A polishing powder producer in Gansu province also reported extremely few orders during recent 2 months, and that August orders fell to 1/4 of those in July.
As for future price trends, these polishing powder producers successively expressed pessimistic views, expecting orders to remain few in September. However, they believe orders may improve in November and December.