SHANGHAI, Apr. 22 (SMM) – SMM selects five pieces of news from the rare earth industry.
Three Rare Earth Enterprises Remaining in Illegal Production Disclosed
The improving export data stimulated many small workshops which have been forced to shut down but actually remaining in production. In order to crack down on those plants, the Association of China Rare Earth Industry announced the list of three illegal rare earth companies on its website recently. Market players believe such move will have a significant meaning of caution, but since the industry association does not have any power of punishing, expected effects will be achieved only if local supervision departments take action.
North China Rare Earth Consolidation Improves, Industry Development Standards Enhanced
With the support from the Ministry of Industry and Information Technology and the government of the Inner Mongolia Autonomous Region, the China Northern Rare Earth Group is being constructed. With the concentration on light rare earth in North China, the consolidation involves in Gansu Rare Earth Group, and backbone enterprises in Sichuan and Shandong province and aims at constructing the China Northern Rare Earth Group, implementing large group strategy.
China Rare Earth Consumption in 2013 Estimated 90,000 Mt
Rare earth analyst Chen Jiazuo pointed out that China will continue to implement rare earth ore products exploration volume plan and quotas plan, which will be flat at 2012 levels. Rare earth prices are expected to fall further, which will boost downstream consumption. China's rare earth consumption in 2013 should reach 90,000 mt, up 7% MoM, with global rare earth consumption of 130,000 mt.
Some Rare Earth Product Prices in Baotou Continue to Fall
According to the NBS, rare earth prices in Baotou have been falling since the start of 2013, down 50% from late 2012. Prices for some products were merely 15%-20% of ex-works prices.
Lynas Long-term Strategy to Challenge China
Rare earth producer Lynas Corp, which is headquartered in Australia, finally produced rare earth in its new plant in Pahang, Malaysia after being examined by the government for years and winning suits.