Seemingly overnight, baotou's rare earth companies were quiet.
According to the daily business news, some rare earth companies have been forced to suspend production at the end of the second day of BBS (international). Baosteel rare earths even convened a special meeting to call for the production of its subsidiaries to halt production.
There have been various explanations for the reasons for the shutdown, some say that the ministry of industry and the ministry of industry and the ministry of industry and the ministry of industry and the ministry of industry and the ministry of industry and the ministry of industry and technology have used up the index of mandatory planning, which is also said to be because of the current weakness in the market. In fact, last October, the company announced that it had been shut down for a month because of a collapse in the price of rare earths. Recently, the price of rare earths has returned to a low level, and there have been a lot of production stoppages in jiangxi, Inner Mongolia and guangdong.
The reason for the shutdown is not the simplicity of the mandatory target, the baosteel rare earth authority told reporters. There is no denying that the shutdown will last for a month.
"All of the rare earth plants near baosteel have been shut down, and we stopped production in half an hour at 9pm on Saturday night." A local business person told the daily business news that the small factories in the surrounding hills have also been stopped.
On August 13th, the day after the BBS, the baotou rare earth industry (international), some local rare-earth companies were ordered to suspend production.
On August 16th, the news of the shutdown spread further and was further confirmed by baosteel. It is understood that baosteel rare earth even held a special meeting to call for its subsidiary to stop production.
"The whole tech centers in the department of enterprise production, also includes the enterprise around the tailings dam, it achieved the mandatory plans of ministry of index of enterprise at all." "A local source told reporters.
In October, baosteel's rare earths were announced for a month at a time when the price of rare earths was flat. At present, the demand of the domestic and foreign rare earth market is weak. Is this shutdown related to this?
Baosteel rare earth authorities told reporters that the business was complex and not as simple as the mandatory target. There is no denying that the shutdown will last for a month.
It is worth noting that the shutdown of the regular companies will make many local private mining companies nervous.
In baotou and in Inner Mongolia, there is a lot of private mining, black market trading and so on. Last year, according to the local entrepreneurs, rare earth prices, the outside of the private mine at least 70000 tons of oxide, supranational regulation index of mandatory plans.
The crackdown on private mining has intensified
In the view of the people familiar with the matter, baosteel's rare earths and subsidiaries have been shut down, and private mining, which has survived policy, has become unusually small.
Zhang zhong, general manager of baosteel rare earth, told the daily business news that baosteel rare earths not only have environmental pressure, they also face the impact of foreign private mining. "The impact of illegal mining and production on our legal [businesses] is huge, and we strongly call for these [illegal businesses] to be hit."
Held in baotou rare earth industry (international) on the BBS, vice minister of ministry Mr. Su said that since last year, the ministry, the ministry, the environment, the general administration of customs and so on was carried out by rare earth production, environmental protection and rectification of smuggling activities, find out more than 600 illegal mining, uncovered smuggling case 10, the rare earth industry long-standing logging dig, unplanned, overproduce, environmental pollution, ecological damage, smuggling crime phenomenon got preliminary control ".
Just a few days earlier, Inner Mongolia had seized a number of private mines. "It used to be at least the concentrate, and now the private mine is a layer of coal, and the bottom is the rare earth." "Said the company.
Correspondents say that the source of many private mines is no longer the original stone. "The extraction from the tailings mud has become a major source of private mining," he said. "because the rare-earth market is unable to maintain its high profits, there is little room for the mine to run." "Local business executives told the daily business news.
"The whole Inner Mongolia is very strict with this card." Local private mines are much smaller than last year and are no longer in the mainstream of the market, say the people.
"Zhang also confirmed to reporters that some manufacturers have moved elsewhere because of strict policies in Inner Mongolia.
In fact, in baotou and China, it is the free from the rare earth "army" of small businesses, small workshops, just become the regulatory vacuum, a lot of pollution and damage to the environment, not only has disturbed the price of rare earth.
At the end of 2011, the price of rare earth elements such as lanthanum, cerium and cobalt was more than three times higher than at the start of the year, according to subo. Heavy rare earth elements, such as chromium and glaze, are about five times higher than the average for the year. Market prices have fallen this year due to the impact of the European debt crisis, but this year the main market price is still two times higher than that of last year右。
The enterprise personage analysis, now the price of rare earth ore control key to see the private, "now the price of the problem, one is to look at the quotation from which side, the other is a quotation after clinch a deal". "With the collapse of private mines, the supply of rare earths will be greatly reduced, and the next step will certainly be higher." The price of rare earths has not yet risen, the person said, but lower-priced items are already being sold out.
However, there are also different voices for the next step in rare-earth prices. During the period of the BBS, rare earth association deputy secretary-general Mr. Chen in accepted the media interview, from the demand side, the current global economy failed to see obvious improvement, if the second half of the United States of rare earth production growth faster, domestic prices may fall. (source: daily economic news)