Domestic Demand to Dominate Rare Earth Market-Shanghai Metals Market

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Domestic Demand to Dominate Rare Earth Market

SMM Insight 01:46:38PM Jan 29, 2013 Source:SMM

SHANGHAI, Jan. 29 (SMM) –

Nonferrous Metals Industry Faces Losses
Although total profits at SOEs posted growth for the third straight month since September 2012, some of them may remain in losses throughout 2012, particularly the nonferrous metals and steel industry.

Rare Earth Market Mainly Affected by Domestic Demand
Rare earth prices inched down throughout 2012. Prices dropped rapidly in 1Q, and stopped falling in mid-to-late March, fluctuating narrowing after rebounding slightly. Rare earth prices plunged again in June. The medium and heavy rare earth purchase by the SRB helped alleviate price decreases in July. Affected by sluggish economy and weak downstream demand, and the tension between China and Japan, rare earth prices fell further after late September, particularly in early and mid October. Prices for lanthanum oxide, cerium oxide continued to slide, while prices for praseodymium oxide, neodymium oxide, terbium oxide and dysprosium oxide stabilized and rose in November as large rare earth producers cut or suspend production, purchased goods and due to expectations that the SRB will buy rare earth reserves again. Rare earth prices entered downward track again since mid December, with major product prices hitting a record low for the year at the year’s end. Regular separators are in losses. 

China Pushes M & A at Rare Earth Industry
Based on the State Council Suggestion Regarding Pushing the Sustainable and Healthy Development of the Rare Earth Industry, China should push consolidation at large enterprises through merger and acquisitions, reduce the number of rare earth miners, smelters and separators and increase consolidation degree of the industry.

Jiangxi Announce Exploitable Resource Reserves
There are 28 exploitable deposits of copper, tungsten, coal, iron, rare earth, gold, silver, tin, lead and zinc reserves in Jiangxi province. Those reserves can contribute to output in 3-5 years, with 500 million mt of iron, 4.30 million mt of copper, 1.2 million mt of tungsten, 600 million mt of coal, 125 mt of gold, 4.3 million mt of lead and zinc, 2,700 of silver, 150,000 mt of tin and 600,000 mt of rare earth.

Rare Earth Consolidation Makes Substantive Strides
M & A at nine industries accelerated, particularly the rare earth sector. Inner Mongolia Baotou Steel Rare-Earth (group) Hi-Tech expanded its scale through consolidation, while integration in south China advances slower. But China Minmetals has made substantive strides through back-door listing.

 

Key Words:  nonferrous metals   rare earth 

Domestic Demand to Dominate Rare Earth Market

SMM Insight 01:46:38PM Jan 29, 2013 Source:SMM

SHANGHAI, Jan. 29 (SMM) –

Nonferrous Metals Industry Faces Losses
Although total profits at SOEs posted growth for the third straight month since September 2012, some of them may remain in losses throughout 2012, particularly the nonferrous metals and steel industry.

Rare Earth Market Mainly Affected by Domestic Demand
Rare earth prices inched down throughout 2012. Prices dropped rapidly in 1Q, and stopped falling in mid-to-late March, fluctuating narrowing after rebounding slightly. Rare earth prices plunged again in June. The medium and heavy rare earth purchase by the SRB helped alleviate price decreases in July. Affected by sluggish economy and weak downstream demand, and the tension between China and Japan, rare earth prices fell further after late September, particularly in early and mid October. Prices for lanthanum oxide, cerium oxide continued to slide, while prices for praseodymium oxide, neodymium oxide, terbium oxide and dysprosium oxide stabilized and rose in November as large rare earth producers cut or suspend production, purchased goods and due to expectations that the SRB will buy rare earth reserves again. Rare earth prices entered downward track again since mid December, with major product prices hitting a record low for the year at the year’s end. Regular separators are in losses. 

China Pushes M & A at Rare Earth Industry
Based on the State Council Suggestion Regarding Pushing the Sustainable and Healthy Development of the Rare Earth Industry, China should push consolidation at large enterprises through merger and acquisitions, reduce the number of rare earth miners, smelters and separators and increase consolidation degree of the industry.

Jiangxi Announce Exploitable Resource Reserves
There are 28 exploitable deposits of copper, tungsten, coal, iron, rare earth, gold, silver, tin, lead and zinc reserves in Jiangxi province. Those reserves can contribute to output in 3-5 years, with 500 million mt of iron, 4.30 million mt of copper, 1.2 million mt of tungsten, 600 million mt of coal, 125 mt of gold, 4.3 million mt of lead and zinc, 2,700 of silver, 150,000 mt of tin and 600,000 mt of rare earth.

Rare Earth Consolidation Makes Substantive Strides
M & A at nine industries accelerated, particularly the rare earth sector. Inner Mongolia Baotou Steel Rare-Earth (group) Hi-Tech expanded its scale through consolidation, while integration in south China advances slower. But China Minmetals has made substantive strides through back-door listing.

 

Key Words:  nonferrous metals   rare earth