The rare earth national storage biding meeting lands down with watchful attitudes among insiders
2016-12-15 19:36:50 [Print]
BEIJING (Asian Metal) 15 Dec 16 - On 13 December, the China’s State Reserve Bureau called on China Rare Metal & Rare Earth, South Rare Earth, Xiamen Tungsten and Guangdong Rare Earth groups to bid for the rare earth national storage, the bidding prices are listed as follows:
Asian Metal ever learnt that the State Bureau intends to bid for 5,300 tons of rare earth oxide, with a capital scale of 2 billion Yuan, while the dealing volume is 1,406 tons in total and the sales is about 0.53 billion Yuan. From the results of the bid, PrNd oxide and terbium oxide failed to bid due to low bidding price, and the yttrium oxide, europium oxide and erbium oxide’s dealing volumes are totally 1,060 tons, which accounted for 75.4%. Comparing to the failed bidding price on June of this year, the bidding prices of PrNd oxide, neodymium oxide, dysprosium oxide, terbium oxide, lutetium oxide and erbium oxide on June are higher than current bidding price level.
After the bid for the national storage, the PrNd oxide and dysprosium oxide prices showed stable price trend, while the terbium oxide price slid a bit. The market reflects quietly and most insiders hold stocks and watch for future market.
“The PrNd oxide and terbium oxide failed to bid, reflecting that the bidding price and payment rules is lower than the companies’ expectation. While, the positive aspect is that, the national storage landed this time since the national storage news since this March, although the bidding price is closed to the market price,” said a source from one of the four groups, adding that metal plants and sintered magnet plants hold sufficient stocks of raw materials now. He predicts that the rare earth prices will show stable trend in general in short time.
“The national storage bidding meeting will have positive effect on the insiders’ market psychology. The bidding price is closed to the market price, which will promote insiders to deal with current rare earth problems,” said another insider in South China, adding that the PrNd oxide and terbium oxide failed to bid, and the dysprosium oxide dealing volume is not large, so that it will not make no much effects on the market price due to heavy stocks of suppliers. Forecasting the future market, he believes that the price trend will be affected by the China MIIT’s regulation on the illegal activities, the operation date next year of separation plants and the further progress of the national storage. These factors are all unconcerned, so he predicts that the price will stand stable at current price level.
Asian Metal believes that, the landing of the national storage bidding meeting, is a reflection of all sides’ hard work and aspiration. Despite the result is less than the expectation, it will be a reference for further steps. In addition, the regulation on the rare earth illegal activities have to be carried out by China’s MIIT owing to the increasing volume but rapidly declining average price in rare earth export market. In short time, the rare earth strict regulation on private ore will stabilize the prices of rare earth products, while the results depend on the cooperation between the central and local governments. For a long run, the light rare earth products have been on the track of rising trend, which wins the development for themselves, however, the separation plants in South China will continue to confront with problems, such as softening downstream demand, heavy stocks, the low prices of heavy rare earth products and etc, so the “Supply-side reform” is still on the way.
Table1 Chins’ national storage bidding prices on 13 December
| PrNd oxide |
||||
| Nd oxide |
45 |
25.59 |
25.8-26.3 |
26.71 |
| Pr oxide |
5 |
32.31 |
32.0-32.5 |
31.93 |
| Dy oxide |
280 |
125.03 |
122-124 |
130.45 |
| Tb oxide |
failed |
287.72 |
290-295 |
291.21 |
| Lu oxide |
16 |
429.7 |
430-440 |
432.79 |
| Eu oxide |
60 |
42.2 |
40-41 |
40.35 |
| Er oxide |
330 |
17.11 |
16.3-16.8 |
17.57 |
| Y oxide |
670 |
2.45 |
2.00-2.10 |
2.29 |
| Total |
Asian Metal ever learnt that the State Bureau intends to bid for 5,300 tons of rare earth oxide, with a capital scale of 2 billion Yuan, while the dealing volume is 1,406 tons in total and the sales is about 0.53 billion Yuan. From the results of the bid, PrNd oxide and terbium oxide failed to bid due to low bidding price, and the yttrium oxide, europium oxide and erbium oxide’s dealing volumes are totally 1,060 tons, which accounted for 75.4%. Comparing to the failed bidding price on June of this year, the bidding prices of PrNd oxide, neodymium oxide, dysprosium oxide, terbium oxide, lutetium oxide and erbium oxide on June are higher than current bidding price level.
After the bid for the national storage, the PrNd oxide and dysprosium oxide prices showed stable price trend, while the terbium oxide price slid a bit. The market reflects quietly and most insiders hold stocks and watch for future market.
Chinese PrNd oxide 99%min Nd2O3 75% price curve since November of 2016 (Unit: Yuan/ton)
“The PrNd oxide and terbium oxide failed to bid, reflecting that the bidding price and payment rules is lower than the companies’ expectation. While, the positive aspect is that, the national storage landed this time since the national storage news since this March, although the bidding price is closed to the market price,” said a source from one of the four groups, adding that metal plants and sintered magnet plants hold sufficient stocks of raw materials now. He predicts that the rare earth prices will show stable trend in general in short time.
“The national storage bidding meeting will have positive effect on the insiders’ market psychology. The bidding price is closed to the market price, which will promote insiders to deal with current rare earth problems,” said another insider in South China, adding that the PrNd oxide and terbium oxide failed to bid, and the dysprosium oxide dealing volume is not large, so that it will not make no much effects on the market price due to heavy stocks of suppliers. Forecasting the future market, he believes that the price trend will be affected by the China MIIT’s regulation on the illegal activities, the operation date next year of separation plants and the further progress of the national storage. These factors are all unconcerned, so he predicts that the price will stand stable at current price level.
Asian Metal believes that, the landing of the national storage bidding meeting, is a reflection of all sides’ hard work and aspiration. Despite the result is less than the expectation, it will be a reference for further steps. In addition, the regulation on the rare earth illegal activities have to be carried out by China’s MIIT owing to the increasing volume but rapidly declining average price in rare earth export market. In short time, the rare earth strict regulation on private ore will stabilize the prices of rare earth products, while the results depend on the cooperation between the central and local governments. For a long run, the light rare earth products have been on the track of rising trend, which wins the development for themselves, however, the separation plants in South China will continue to confront with problems, such as softening downstream demand, heavy stocks, the low prices of heavy rare earth products and etc, so the “Supply-side reform” is still on the way.
