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Rare-earth downstream enterprises smashed the whole industry chain and gambling prices rose again
The soaring price of rare earth raw materials has hurt the downstream application enterprises of rare earths. Recently, our reporter learned from rare earth permanent magnet materials enterprises in Shanxi, Zhangzhou and Baotou that with the increase of rare earth prices, the area of ​​production of downstream rare earth application enterprises has expanded, and most enterprises have been rushing to increase their prices. A person in charge of Shanxi Jingcheng Technology Magnetic Materials Co., Ltd. told this reporter that due to the soaring of rare earth raw materials, some rare earth manufacturing enterprises have stopped production and hoarded raw materials. The person in charge explained that the profit of the speculative mine is far greater than the production profit, which is the main reason why some manufacturing enterprises turn to the mine. Taking rare earth metal ruthenium as an example, the cost price is between 50,000/ton and 80,000/ton, the sales price has reached 1.45 million/ton, and the price has a trend of breaking 2 million/ton. I feel incredible. In addition to the discontinuation of antimony ore by downstream manufacturing companies, rare earth upstream raw material suppliers and traders also have antimony ore behavior. A person from Zhangzhou Huamei Company told this reporter that Baotou Steel Rare Earth (68.40, 0.00, 0.00%) (600111.SH), Jiangxi Copper (33.39, 0.00, 0.00%) (600362.SH), Minmetals, China Large producers and traders such as steel have hoarded a large amount of rare earth metals and raw ore, and small and medium traders are constantly pushing up prices. Although the rise in rare earth prices has ended the era of China's rare earth selling “cabbage prices†in the past 20 years, the damage to the industrial chain has attracted the attention of relevant departments in the absence of changes in the domestic supply and demand pattern of rare earths. On June 21, an expert from the Rare Earth Office of the Ministry of Industry and Information Technology told this reporter that at present, the Ministry of Industry and Information Technology is studying the rare earth pricing mechanism to prevent further increase in rare earth prices and further damage to rare earth application enterprises. Downstream production of dumped goods "The risk of stocking is also very large, because the price will come down, everyone has no spectrum." "Now the downstream production enterprises can not be overemphasized by life and death." The above-mentioned person of Shanxi Jingcheng Technology Magnetic Materials Co., Ltd. Said to this reporter. At present, a large number of small and medium-sized rare earth application enterprises including Shanxi Jingcheng Technology Magnetic Materials Co., Ltd. have been in a state of suspension. Although the monthly fixed cost loss of tens of thousands to millions is temporarily affordable, the price of rare earth is unstable day by day. It cannot be produced normally in one day. Our reporter has learned that many application companies have simply stopped production and “turned†to start the rare earth trade. A general manager of the well-known enterprise in Shanxi magnetic industry, Yuncheng Heng Magnetic, told this reporter that the current supply and demand structure of rare earth has not changed, but the price of upstream raw materials has undergone earth-shaking changes. The upstream price increases and the downstream can only be passive. Accepted, a large number of customers in downstream enterprises did not buy it, so many companies took the opportunity to stop production and set off raw materials in order to make money. "Actually, the risk of stocking is also great, because the price will go down, everyone has no heart." The general manager of Yuncheng Heng Magnetic said. Wang Caifeng, the head of the preparatory group of the Rare Earth Association, told this reporter that since the raw materials are processed into products, it is better to sell the rare earth raw materials, so the downstream enterprises hoard the rare earth raw materials, but this phenomenon is unsustainable, perhaps The days are still not open, but if the rare earth is still "valuable without a market" in the next year, it will definitely cause great damage to the rare earth industry. Who made the rare earth soaring Rare earth prices soared, far beyond the market's forecast range, what is the reason? China's rare earth control policy is the fuse of the soaring rare earth. However, the top-down dumping behavior of the rare earth industry chain, as well as the entry of financial capital and private capital, is the main reason for the price increase of rare earth. In an interview, our reporter found that in addition to the downstream application enterprise Yankuang, the middle traders and the upstream enterprises that master the supply of raw materials are also hoarding raw materials. Our reporter was informed that Baosteel's rare earth shipments this year are much smaller than the mining volume. The stocks of rare earth raw materials of Minmetals Chuzhou and Jiangxi Copper have reached a high point. Traders continue to push up prices. A number of rare earth industry insiders told this reporter that at present, China's rare earth market lacks a pricing mechanism and is basically in a state of “following the priceâ€. At the same time, upstream manufacturers and traders are reluctant to ship because of the bullish market. In addition, the involvement of financial speculators in the rare earth industry is worthy of attention. During the Mining and Fortune Forum on June 14, our reporter learned that many financial institutions, including Goldman Sachs, are involved in rare earth transactions. Chinese executives from an Australian mining company told this reporter that the involvement of international financial speculators means that rare earths may fall from high points at any time. By then, enterprises in China's rare earth industry chain will suffer. Seeking a reasonable pricing mechanism At present, the potential risks brought about by the surge in rare earth prices have attracted the attention of the Ministry of Industry and Information Technology. An expert from the Rare Earth Office of the Ministry of Industry and Information Technology told this reporter that the Ministry of Industry and Information Technology and the major domestic rare earth enterprises discussed the issue of rare earth pricing. Wang Caifeng said that raising the price and value of rare earths is not to raise prices to an unreasonable height in the short term, but to stabilize in a reasonable range according to the supply and demand situation of the entire industrial chain. An expert from the China Rare Earth Society said that the irrational rise in rare earth prices will bring huge risks to the industry, because the terminal demand for rare earths is still in Japan, Europe and other countries. Zhong Wenbin, a securities affairs representative of Zhongke Sanhuan (19.33, 0.00, 0.00%), said that the company is the leader of NdFeB in the downstream sector. As the price of rare earth increases, the company's products will also raise prices to avoid risks, but the company's largest The confusion is that it is impossible to see how much the raw material price can rise. If the downstream customer loses because of the excessive price increase, the risk is too great for the company. As for how to form a reasonable rare earth price mechanism, government departments and enterprises are at the stage of exploration.