State Purchase and Storage Stimulate Rare Earth Price 20150318
Neodymium Permanent Magnets Manufacturer China Rare Earth Magnet Limited
After an upside move of rare earth price, recently it still keeps firm and strong. On March 12th, 2015, China Rare Earth Industry Association declared that price of mainstream products including dysprosium oxide, terbium oxide and praseodymium neodymium oxide hold stable. However, because trading volume becomes less, the coming state purchase and storage expected by the market will cause a sharp growth of rare earth.
Definitive news of state purchase and storage still has not come out yet. Nonetheless, analysts believe that node of state purchase and storage will come at May 2nd. The critical product is medium and heavy rare earth. Because China lost the lawsuit of rare earth in WTO, it will completely open export of rare earth after May 2nd. In order to relieve impact brought by open of export, state purchase and storage will be hopefully carried out before May 2nd. Reform of rare earth resource tax will be followed as well. At that time, price of rare earth will increase significantly.
Auction of state purchase and storage has been completed on July 31st, 2015. The first shipment began in Ganzhou in September. Total state purchase and storage reached one hundred million tons, which are finished by six enterprises including China Minmentals Rare Earth and Northern Rare Earth. Another six permanent magnet manufacturers participating in purchase and storage has 3000 tons of commercial storage. They have adjusted product structure and been partial to medium and heavy rare earth.
Price of rare earth bottomed out in November, 2014. Due to foundation of Northern Rare Earth Group, implementation of striking illegal mining of rare earth and hearsay of state purchase and storage in 2015, China Rare Earth Industry Association indicates that quote of dysprosium oxide will increase over 25% and price of terbium oxide will go up over 50%. Currently, due to tight resource in the market, once the government really begins purchasing and storing, price will rise sharply in a short time.
After an upside move of rare earth price, recently it still keeps firm and strong. On March 12th, 2015, China Rare Earth Industry Association declared that price of mainstream products including dysprosium oxide, terbium oxide and praseodymium neodymium oxide hold stable. However, because trading volume becomes less, the coming state purchase and storage expected by the market will cause a sharp growth of rare earth.
Definitive news of state purchase and storage still has not come out yet. Nonetheless, analysts believe that node of state purchase and storage will come at May 2nd. The critical product is medium and heavy rare earth. Because China lost the lawsuit of rare earth in WTO, it will completely open export of rare earth after May 2nd. In order to relieve impact brought by open of export, state purchase and storage will be hopefully carried out before May 2nd. Reform of rare earth resource tax will be followed as well. At that time, price of rare earth will increase significantly.
Auction of state purchase and storage has been completed on July 31st, 2015. The first shipment began in Ganzhou in September. Total state purchase and storage reached one hundred million tons, which are finished by six enterprises including China Minmentals Rare Earth and Northern Rare Earth. Another six permanent magnet manufacturers participating in purchase and storage has 3000 tons of commercial storage. They have adjusted product structure and been partial to medium and heavy rare earth.
Price of rare earth bottomed out in November, 2014. Due to foundation of Northern Rare Earth Group, implementation of striking illegal mining of rare earth and hearsay of state purchase and storage in 2015, China Rare Earth Industry Association indicates that quote of dysprosium oxide will increase over 25% and price of terbium oxide will go up over 50%. Currently, due to tight resource in the market, once the government really begins purchasing and storing, price will rise sharply in a short time.
