Experts suggest how to stabilize the price of rare earth

Oriental Morning Post July 07, 2011: According to past practice, the rare earth export quotas in the second half of this year are expected to be announced in the near future. At this moment, the prices of certain rare earth metals in China have fallen for the first time this year.

Since the beginning of this year, the price of rare earths in China has risen astonishingly, and the prices of many rare earth products have risen more than twofold. The Wall Street Journal quoted data from the Australian mining company Lynas Corp. on the 6th that some of the rare earth metals in the Chinese domestic market fell for the first time this month, with the highest drop of 7.2% in the beginning of July. Among them, the production of cerium oxide for glass and catalyst converters sold at US$28.64 per kg in the beginning of this month, the lowest level since April. The price of niobium oxide used to make hybrid car batteries fell by 4.4% to $24.77 per kilogram. The price of niobium oxide, which is a high-strength magnet for wind turbines, fell by 2.2% to US$236.84 per kg.

China Securities Journal July 29, 2011: Business Club data show that in July, light and heavy rare earth prices have stabilized, but some varieties still show a downward trend. A month ago, the prices of light and heavy rare earths generally stopped rising. Some small traders began to loosen their expectations for price increases and dumped goods one after another, causing prices of individual varieties to fall.

From late June, the prices of light rare earths such as antimony oxide and antimony oxide have stabilized, and the prices have been maintained at 1.15 million yuan/ton and 1.47 million yuan/ton, respectively, but heavy rare earths such as antimony oxide continue to rise. In July, the prices of most of the light and heavy rare earths remained stable, but the prices of some varieties were still falling. For example, on July 20, the prices of yttria were 12,500 yuan/kg, a drop of 6.02% from the previous quarter.

Business Society analyst Song Zhichao said that although the prices of rare earth products have loosened after continuous soaring, the future prices still need to be watched. Due to the gradual deepening of the integration of rare earths in the south, coupled with the increase in the number of companies that have not yet achieved the environmental protection and production stoppages, the supply of rare earths is expected to further tighten.

In addition, China’s rare-earth resources have risen indefinitely. China’s “manipulation” of rare earth supply has also been questioned by foreign media, but it has to be said that: China’s rare earth prices are indeed ups and downs, experts It is suggested that in order to manage the export of rare earths, the order of domestic exploitation and smelting should be regulated first. Professor Wang Guozhen, former vice president of the China National Nonferrous Engineering and Design Institute, stated that China's export management of rare earths should first of all be done domestically, and the domestic mining and smelting links should be standardized, and exports would be regulated accordingly. Zhang Qizi, a researcher at the Institute of Industrial Economics at the Chinese Academy of Social Sciences, believes that the focus of the rare earth policy should be to increase the production cost of rare earths in China through the guidance of laws and policies so that the market will spontaneously reduce its supply and exports.

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