The price of rare earths, which has been falling since march, is approaching the bottom price of 2011, driven by weak demand at home and abroad. In this context, baosteel rare earth once again made a decision to suspend production for a month to guide the price stability of rare earth products.
Market participants said the insurance on a "production" of baotou rare earth, may be a slight boost for the market, but if the market demand at home and abroad can't warm, rare earth industry will not out of the downturn.
On October 24, baotou rare earth announcement, points out that to promote the smooth and healthy development of rare earth market, guide the rare earth products prices stable operation, the company decided to, since October 23, 2012, the company's application in baotou rare earth smelting ore roasting, separation of enterprise and application of rare earth mine south south steel crystal ring company, letter feng steel xinli company production for one month. At the same time, the company has suspended the supply of raw materials to the relevant roasting and smelting companies.
This is not the first time that baosteel rare earths have been used to guarantee prices. In October 2011, baosteel rare earths announced a decision to suspend production for a month.
At the time, rare-earth prices fell sharply from their 2011 highs. Price of neodymium praseodymium oxide, for example, influenced by the state strengthens the rare earth management, neodymium praseodymium oxide 2011 prices had reached a peak of 1.4 million yuan/ton, but then gradually decline in prices. In October last year, the price of dioxide was about 700,000 yuan per ton.
However, the "stop price" measures for baosteel have failed to reverse the decline in rare earth prices, which have been falling. Price of neodymium praseodymium oxide in February of this year fell to 350000 yuan/ton, although after entering march, neodymium praseodymium oxide prices back up to 450000 yuan/ton, but then a few months, neodymium praseodymium oxide prices decline is still a month by month, so far has dropped to below 350000 yuan/ton.
Baosteel is the country's largest producer of light rare earths, which has a leading influence on the price of light rare earths. "From last year's experience, baotou rare earth production, light rare earth prices may impact is not obvious, because due to weak market demand, the pattern of the rare earth supply exceeds demand without a fundamental shift, rare earth price is difficult to improve significantly." The travelling expenses of rare earth industry analysts Du Shuai soldier told the China securities journal reporter, "but unlike last year, prices this year has been close to the bottom, have little scope continues to decline."