Driven by traditional busy season of stocking up and expected policy of state purchase and stock, rare earth market has a long-overdue bull market. Recently, prices of various kinds of rare earth products continue going up and keep firm. Reporters of China Chemical Industry News, on March 20th, learned from rare earth manufacturers and industrial insiders that a series of policies would speed up due to lost lawsuit of WTO, elimination of custom duties, enhancement of state purchase and store and issue of resource duties. The bull market will sustain for a longer time. Based on the existing price, it can go up by 10%-20%.
According to Hu Yaobing, prices of most kinds of rare earth entered a bottoming process. Prices of some products even went down below cost line. Production and business of manufacturers were in trouble and most factories were off production or half off production. Although, currently, prices of rare earths are rapidly rising, the whole prices are even not worth the half in 2010. This year, rare earth market regains confidence. Prospect of post market is promising, especially that of heavy rare earth products. On one hand, because of national macro policies of rare earth industry, prices are continuing going up. On the other hand, the export to America is expected to expand. America’s economy has obvious recovery. Also, as a big importing country, consumption of rare earth is rising significantly. America’s import of heavy rare earth is all depended on China.
Industrial insiders believe that for a long time in the future, there is polarization between prices of light and heavy rare earth. Price of heavy rare earth continues rising, but light rare earth may decrease. For a long run, price of light rare earth may remain unchanged or go down. But on the contrary, demand of heavy rare earth possibly exceeds supply, which may drive price up.
So far, only China can supply all 17 rare earth elements for the whole world, which covers 90% of international market. China has the largest reserve of rare earth, but that of heavy rare earth only occupies 3%. Meanwhile, heavy rare earths are widely applied to military industry, nuclear reactor and computers, so they are strategic. Reserve and production of light rare earth are larger and neodymium permanent magnet materials can be taken place by industrial new materials.
All indications are that follow-up industrial policies come out in succession, which will intensify different market trends of prices of two rare earths. Because cancel of export quota and custom duties, domestic light rare earth starts competing with foreign light rare earth. Experts advise that China should accelerate research and development of light rare earth products and expand consumption market of light rare earth. However, no matter light or heavy rare earths, both of them will be tested by demand of international market.
China Rare Earth Magnet Limited
Tags: China Rare Earth
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