In the beginning of the year, Rare earth material price slightly rebounded, and then it continuous falling since March. As per the data presented by China Rare earth industry association, Rare earth price index of June 15th reported 131.1 points which created a new low point of two years. The price of mainstream varieties oxidation dysprosium and oxidation PR ND in 15th declined 15% more than the high point of March. Besides, the industry entered into the traditional off-season. It is considered that the Rare earth material price hardly picks up recently without major policy of purchasing and storage introduced in short-term.
A number of insiders said to the Great Wisdom of the news agency there were no obvious signs of falling and the spot market transactions are quiet. However, most manufacturers have struggled to maintain production and few enterprises have production shutdown plans. The analysts think the price will continue to decline Since 2014, Rare earth industry started regulation from crack down on speculation and profiteering, big group consolidation, export policy adjustment, resource taxes reformation and other ways, but no much effect at all. The downstream demand remains in the doldrums and the spot prices do not improve either.
Rare earth export tariffs were called off from May 1. The analysts believe that tariff elimination equivalents export prices fell 20~ 25% and China's rare earth exports will fall sharply, but the exports volume would increase. It is good news for enterprise inventories.
The date from General Administration of customs showed the export volume of Rare earth in May was 2618 tons, an increase of 11% over the same period of last year. But the total rare earth exports volume from January to May were 10661 tons, a down of 15% compared with cumulative 12544 tons in the same period last year.
The analysts believe that the current depressed market and weak demand were related to the excessive accumulation of rare earth resources. When Rare earth price increased rapidly in 2011, the illegal rare earth resources were over exploited and were suppressed through a joint crackdown repeatedly. It remains the improvement focus up to now.
The securities analysts also said, the sustainability rise of the Rare each stock depends on the positive improvements brought by the crackdown of illegal rare earth exploitation, purchasing and storage, group integration and other polices. For the current situation of price slump, the analysts said, the rare earth price doesn’t own condition of rapid increase prior to the completion of the integration of six groups and obtaining of pricing power of rare earth. Please pay attention to the good investment opportunities of significant national strategy for Rare earth resources in medium and long term.
China Rare Earth Magnet Limited
Tags: China Magnet
