2017, with China's rare earth industry to further promote the reorganization of rare earth prices rose steadily.
Since the beginning of the year, the standard rare earth products praseodymium neodymium oxide accumulated 43%. And the product rally since June has been significantly accelerated, less than two months of time contributed more than half of the increase.
A shares corresponding to the company's share price also appeared to rise significantly. Since June, the northern rare earth accumulated 31%, rare earth permanent magnet plate accumulated 16.4%.
China's rare earth companies are also developing overseas resources, July 11 this year, Sheng and resources announced that the joint foreign rare earth mine Mountain Pass's asset purchase agreement has been approved, the mine is located in the United States, California.
Americans seem to be more afraid of China's influence in the field of rare earth US media reported that the US element head on Monday with Trump chief strategist Bannong met to persuade him to Nationalization Mountain Pass, because the rare earth mine has military use.
Rare earth action continues to deepen
Since June the price of rare earths higher, and since the end of last year's rare earth action is not unrelated.
2010, rare earth prices have emerged a wave of skyrocketing. But after that, by the industry overcapacity and illegal production, the rare earth market price shocks down. Since 2011, rare earth prices have been callback from the high point of about 80%.
In order to maintain the normal production order of the industry, the Ministry of Industry jointly eight ministries in December 2016 to start rare earth industry special governance action.
In June this year, the Ministry of Industry and Rare Earth Office set up to reorganize the rare earth industry order expert group, to be normalized against rare earth illegal production behavior, while Guangxi, Jiangxi, Shanxi and other places have also pushed to crack down on rare earth illegal action.
Prior to the rectification of the six major groups (aluminum, rare earth, Xiamen tungsten industry, China Minmetals, Guangdong rare earth, rare earth in the south) outside the illegal business, in fact, six groups also part of the smelting recycling enterprises use rare earth raw materials. Economic Daily reported that the rectification of the six groups also included, will be under the Group's smelting recycling enterprises strict control.
Middle East has oil, China has rare earth
Deng Xiaoping in 1992, when the South said: the Middle East has oil, China has rare earth.
According to the US Geological Survey (USGS) data, as of 2016 global rare earth reserves of about 120 million tons, China's rare earth reserves of 44 million tons, accounting for 36.67% of world reserves, ranking first in the world.
Although China's rare earth reserves ranked first in the world, but far to the extent of the exclusive. However, the global rare earth production in 2016 12.6 million tons, China contributed 105,000 tons, accounting for up to 83%.
Societe Generale Research pointed out that the global rare earth reserves in 2016 divided by the output, the ratio close to 1000. This means that in the case of inadequate exploration, the existing rare earth can be mined for nearly 1000 years, which also shows that rare earth is not scarce. China's influence on global rare earth is more focused on production rather than reserves.
Moreover, China's rare earth enterprises are still developing overseas resources, July 11 this year, Sheng and resources announced that the joint purchase of overseas rare earth mine MountainPass asset has been approved. The mine is located in the United States, California, was once the main source of global rare earth. But after 2000, MountainPass gradually lost its competitiveness as China's rare earth cost competitiveness became stronger and stronger.
The United States and anxious?
US media reported that the head of AmericanElementsCorp was met Monday with Trump chief strategist Bannon to persuade him to nationalize MountainPass, which had military use.
The official said, Sheng and resources won the bid for the MountainPass mine should be transformed into a commitment to the reconstruction of the United States rare earth mining state-owned laboratories to prove that the United States also has the ability to build high-tech factories.
From the industrial research finishing rare earth downstream application point of view, nearly half of rare earth for permanent magnet industry. The permanent magnet industry's most important raw material, it is the iconic rare earth products praseodymium neodymium products.
At present, rare earth permanent magnet in the field of new energy vehicles and other widely used in the first half of rare earth permanent magnet production generally increased by 10% -30%. Rare earth permanent magnet or missile weapons and other military equipment, the key raw materials of the original, and as mentioned earlier, because China contributed nearly 90% of the world's rare earth production This is the Americans worry about.