Jiangxi launches rare earth blackening, short-term or will boost prices
The Jiangxi Provincial Industry and Information Commission recently issued a “Communication on Organizing Special Actions to Combat Rare Earth Violations and Regulations” (hereinafter referred to as the “Notice”) in various local departments, clarifying that Jiangxi Province will crack down on rare earths from September 2018 to January 2019. Special actions for violations of laws and regulations.
In an interview with the Shanghai Securities Journal, the people in the rare earth industry said that the documents issued by Jiangxi Province indicated that a new round of rare earth anti-black operations and corporate verification is about to begin. This round of action is mainly aimed at the southern ion-type rare earth mine, which will bring the boosting effect to the rare earth market in the short term. In addition, downstream demand is expected to improve in the fourth quarter, and prices of 镨, 钕, 镝, 铽 and other varieties are expected to rise steadily.
The “Notice” shows that the specific measures for this round of special campaigns against rare earth violations in Jiangxi Province include cracking down on illegal mining of rare earths, investigating and dealing with illegal activities in the smelting and separating sectors, rectifying the illegal processing of illegal mineral products in the name of “comprehensive utilization”, and regulating the trading of rare earth products. And to check the implementation of local regulatory duties, etc., will control the actions of the rare earth industry from various links.
The object of verification is 123 rare earth separation and smelting enterprises and trading companies in Jiangxi Province, of which 52 are mainly verified, which basically covers all the rare earth processing enterprises in Jiangxi Province.
The analyst team of the Rare Earth Metals Rare Earth Industry told the reporter that Jiangxi, as the southern ion-type rare earth mineral concentration area, occupies about 30% of the national heavy rare earth reserves. In 2018, it has about 12900 tons of rare earth production plan indicators, close to the southern rare earth mining. 50% of the total plan. At the same time, Jiangxi Province is also a region where the black rare earth industry is relatively rampant, and the black rare earth industry has repeatedly banned the profits of legitimate enterprises.
The team believes that the “Notice” announced this time indicates that the impact and punishment of the new round of special actions will be stronger than before, fully reflecting the determination of the regulatory authorities to rectify the black rare earth market. The special action will run through the fourth quarter, coupled with multi-sector joint law enforcement, the production and circulation of black rare earth will converge, and it is expected that the price of heavy rare earth products will be boosted.
According to the reporter, the new round of rare earth blackening activities will focus on Jiangxi, and the impact will be radiated to Fujian and Sichuan.
Du Shuaibing, a senior rare earth analyst at Baichuan Information, said that from the supply link, with the normalization of the blackout, the current violations have been drastically reduced, and the production of rare earths has actually declined. The number of imports has increased significantly compared with previous years. The overall price of rare earths this year is relatively stable, mainly because downstream demand is relatively weak. With the reduction of domestic rare earth supply, environmental protection requirements continue to increase, supply costs increase accordingly, and cost factors coupled with the launch of a new round of rare earth blackening campaigns, the price of rare earths has certain support.
“If the international trade environment has improved and the downstream demand side has improved, the prices of 镨, 钕, 镝, 铽 and other varieties are expected to rise slowly.” Du Shuaibing said.
At the Baotou Rare Earth Industry Forum held recently, Wang Jiangping, deputy director of the Ministry of Industry and Information Technology, said that rare earth resources require government control, but more need to adjust the market mechanism. The next step is to improve the management mechanism, link upstream and downstream enterprises, optimize production capacity and industrial structure, and realize The transition to high value-added industries. It is necessary to strengthen the management and control capabilities of the six major rare earth groups. At the same time, two or three deep processing leading enterprises will be formed to truly play the leading role of the industry.
Author: Wang Wenzhao, Editor Lin Jian
Source: Shanghai Securities News·News·Company
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