InIInfo
RARE EARTH WEEKLY
REVIEW NOV 17-21,2014
Nov.21,2014 ｜Published by Info-RE｜www.info-re.com
A Weekly Highlight of the Rare Earth Market
Table of Contents
Market Summary……………………………………………P2
China Highlights……………………………………………..P3
Global Highlights…………………………………………….P5
Contact us
Author: Margaret Xue
End user Highlights…………………………………………P5
Email: margaret@info-re.com
Pricing Highlights……………………………………………P6
Tel: +86 -10-5649-0177
Rare Earth Outlook for Next Week…………………P8
Fax: +86 -10-5649-0377
Mobile: +86-136-9132-5401
2 Rare Earth Weekly Review Nov 17-21,2014
Market Summary
This week a local Chinese media reports that China is set
to change the levy on rare earth resources from in terms
of quantity to in terms of price.
The final decision is still uncertain at present, while
sources said that the tax for light rare earth resources in
northern China would be 22% and 35% for the ionabsorption rare earth resources in southern China.
The sharp increase in rare earth resource taxation will
definitely raise rare earth prices, which is expected to
somewhat curb rare earth exports and protect the
strategic resources.
Meanwhile, Beijing has been enhancing its
management on rare earth mining, smelting and
separating. According to an announcement issued by
the State Council, projects related to rare earth mines
and rare earth smelting and separating projects should
be approved by the State Council.
Nonetheless, the rare earth market has continued to see
a lack of strong consumer buying during the past week
despite of some favourable government policies.
Prices for many rare earth elements have been
weakening recently and some suppliers are keen to lower
prices to secure business to recoup cash as soon as
possible even though many suppliers have been in
stoppages because of without any profit margin left.
Terbium and dysprosium prices have remained firming
this week with suppliers preferring to hold on to stocks
now rather than sell material on their expectations of
much higher prices underpinned by investors’ restocking.
Some market players are cautiously optimistic about the
price direction in the short term due to a persistent lack
of strong downstream consumer buying, predicting prices
would not sharply head up in the coming weeks.
China’s export market is reported flat as well and some
exporter sources said that they have not got overseas
enquiries even for small deals. Most buyers have been
trying to postpone their restocking to wait for a clear
China’s export policy for rare earth in 2015.
Some sources reported that the generally export price
trend has been softening in response to slack Chinese
domestic market as well as low bid prices from overseas
buyers.
Nov 17-21, 2014
A weekly highlight of the rare earth market
China’s Rare Earth Prices over Nov 17 -21, 2014
Product Price on Nov 17
Price on Nov 21
Unit
Change
Pr/Nd
Pr/Nd metal
99% min 355,000-358,000 352,000-355,000
Pr/Nd metal
99% min FOB 80-85
80-83
Pr/Nd oxide
99% min
270,000-275,00 270,000-275,000
Pr/Nd oxide
99% min FOB 58-61
57-60
RMB/t -3,000
$/kg
-1
RMB/t
=
$/kg
-1
Dy
Dy metal
99% min
1,850-1,950
Dy metal
99% min FOB 400-440
Dy oxide
99% min
1,420-1,450
Dy oxide
99% min FOB
300-320
Fe-Dy
Dy 80% min 1,430-1,460
Fe-Dy
Dy 80% min FOB 310-330
1,850-1,950
400-440
1,450-1,470
300-320
1,450-1,470
310-330
RMB/kg
=
$/kg
=
RMB/kg
+25
$/kg
=
RMB/kg
+15
$/kg
=
RMB/t
-500
$/kg
=
RMB/t
=
$/kg
-0.1
RMB/t
=
$/kg
-0.5
La
La metal
99% min
35,000-37,000
La metal
99% min FOB 9-9.5
La oxide
99.9% min
13,500-14,500
La oxide
99.9% min FOB 4.1-4.7
La oxide
99.999% min 35,000-38,000
La oxide
99.999% min FOB 8-9
35,000-36,000
9-9.5
13,500-14,500
4.1-4.5
35,000-38,000
7.5-8.5
Ce
Ce carbonate
45% REO
5,500-5,800
5,500-5,800
RMB/t
=
Ce carbonate
45% REO FOB
2.5-2.8
2.5-2.8
$/kg
=
Ce metal
99% min
37,000-39,000 36,000-37,000 RMB/t
-1,500
Ce metal
99% min FOB
10-12
10-12
$/kg
=
Ce oxide
99.9% min
12,000-13,000 12,000-13,000 RMB/t
=
Ce oxide
99.9% min FOB
4.0-4.5
4.0-4.5
$/kg
=
Nd
Nd metal
99% min
350,000-355,000
Nd metal
99% min FOB
78-82
348,000-353,000 RMB/t
78-82
$/kg
Copyright©Beijing Easy Information Technology Co., Ltd
-2,000
=
3 Rare Earth Weekly Review Nov 17-21,2014
China Highlights
China set to largely raise resource taxes for rare earths
China’s Rare Earth Prices over Nov 17 -21, 2014
Product
Price on Nov 17 Price on Nov 21
Unit
Change
Nd oxide
99% min 263,000-268,000 261,000-266,000 RMB/t
-2,000
Nd oxide
99% min FOB
57-60
54-57
$/kg
-3
Tb
China is set to change the levy on
rare earth resources from in terms of quantity to in terms
of price.
The final decision is still uncertain at present, while sources
said that the tax for light rare earth resources in northern
China would be 22% and 35% for the ion-absorption rare
earth resources in southern China, according to a report
covered by Economic Information Daily.
The report said that given the WTO ruling against China,
Beijing has been accelerating its integration and
consolidation of rare earth groups. On the other hand, the
sharp rise in rare earth resource tax will somewhat curb
large exports of rare earths and then protect the strategic
resources. And the move is also expected to ease the
negative impact brought by the WTO ruling on China’s
management on rare earth sector.
The report quoted a market insider source said that the
change of rare earth taxation will create a level playing
field. The source said that the current tax for ionabsorption rare earth concentrate in Jiangxi is
RMB36,000/tonne while in Guangxi the tax is just
RMB6,000/tonne.
Nonetheless, many Chinese rare earth producers are
concerned that the sharp increase in rare earth resource
tax might further stimulate illegal mining and production,
leading to legal rare earth enterprises to encounter more
difficulties and resulting in an industrial crisis.
Rare earth smelting and separating projects need approval
by the State Council
China published the list for government approval
investment projects in 2014.
According to the list, projects related to rare earth mines
should be approved by related management department of
the State Council.
And rare earth smelting and separating projects should also
be approved by the State Council. Nonetheless, deepprecession projects should be checked and approved by
provincial government agency.
Nov 17-21, 2014
A weekly highlight of the rare earth market
Tb metal
99% min
3,450-3,550
Tb metal
99% min FOB
780-830
Tb oxide
99.99% min 2,600-2,700
Tb oxide
99.99% min FOB 570-620
3,450-3,600
RMB/kg
+25
780-830
$/kg
=
RMB/kg
+75
$/kg
=
2,700-2,750
570-620
Pr
Pr metal
99% min
570,000-600,000 560,000-590,000 RMB/t -10,000
Pr metal
99% min FOB
128-138
128-138
$/kg
=
Pr oxide
99% min
410,000-420,000 400,000-410,000 RMB/t -10,000
Pr oxide
99% min FOB
100-105
100-105
$/kg
=
Eu
Eu oxide
99.99% min
1,800-2,000
Eu oxide
99.99% min FOB
600-650
1,800-1,900
600-650
RMB/kg -50
$/kg
=
Gd
Fe-Gd
Gd 73% min 83,000-86,000
81,000-84,000
Gd oxide
99% min
70,000-73,000
68,000-71,000
Gd oxide
99% min FOB
21-26
21-26
Gd oxide
99.99% min 150,000-160,000 145,000-155,000
Gd oxide
99.99% min FOB 37-42
37-42
RMB/t -2,000
RMB/t -2,000
$/kg
=
RMB/t
-5,000
$/kg
=
RMB/t
=
Y
Y metal
99.9% min 230,000-260,000 230,000-260,000
Y oxide
99.999% min 33,000-35,000 32,000-34,000
Y oxide
99.999% min FOB 11.7-12.7
11.7-12.7
RMB/t -1,000
$/kg
=
Er
Er oxide
99% min
245,000-255,000 240,000-250,000
Er oxide
99% min FOB
51-56
51-56
La/Ce mischmetal
La/Ce mischmetal
(La 35%, Ce 65%) 33,000-35,000 33,000-35,000
RMB/t
-5,000
$/kg
=
RMB/t
=
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4 Rare Earth Weekly Review Nov 17-21,2014
Japan remains the largest importer for China’s rare
earths in Jan-Sep
According to customs
statistics, China exported
85,820.4 tonnes rare earths
to Japan in the first three
quarters, accounting for
42.5% of China’s total
export amount during the first nine months. And
Japan is still the number one importer for China’s rare
earths.
China’s Rare Earth Prices over Nov 17 -21, 2014
Product
Price on Nov 17 Price on Nov 21 Unit Change
La/Ce mischmetal
(La 35%, Ce 65%) FOB 8.5-9
8.5-9
$/kg
=
Sm
Sm metal
99% min
90,000-95,000 90,000-95,000 RMB/t
=
Sm metal
99% min FOB
21-24
21-24
$/kg =
Sm oxide
99% min
14,500-15,500 14,000-15,000 RMB/t
-500
Sm oxide
99% min FOB
4-5
4-5
$/kg
=
Mischmetal(Battery Grade)
China totally exported 20,064.9 tonnes rare earth in
with low Zn & low Mg
January and September, up 28.3% from the same
Mischmetal 120,000-130,000 120,000-130,000 RMB/t
=
with low Zn & Mg
months of 2013, whilst a decrease of about 20.3%
Mischmetal
23-25
23-25
$/kg =
seen in export value.
with low Zn & Mg FOB
The average export price was $13,640.6/tonne, down 37.9% year on year.
The US market is the second largest overseas market for China’s rare earth during the first three quarters, with 6,805.9
tonnes delivered to the US, accounting for 33.9% of China’s total export quantity over the period of time.
18,593.6 tonnes light rare earths were exported in January-September, up 30.3% year on year. Lanthanum oxide and cerium
carbonate were the main exported light rare earths, with amounts of 8,259.9 tonnes and 3,469.6 tonnes respectively.
Meanwhile, China exported 1,471.1 tonnes heavy and medium rare earths, up 7.5% from the corresponding period in 2013.
682.7 tonnes yttrium oxide was exported in the first nine months.
There were 7,745.8 tonnes light rare earths and 774.5 tonnes heavy and medium rare earths respectively exported to Japan
in these months.
China’s main rare earth product export statistics in January-September 2014:
Product
Export Amount (kg)
Change YoY
Export Value ($)
Change YoY
Single Rare Earth
Oxide
Rare Earth Metal
Rare Earth Salt
Rare Earth Flint Alloy
Rare Earth Smelting
and Separating
Product in Total
12,206,827
19.3%
185.190 million
-11.6%
2,894,915
5,422,083
405,405
20,929,230
26.1%
66.7%
33.3%
26.2%
64.710 million
46.681 million
4.245 million
300.826 million
-35.1%
19.4%
56.5%
-14.3%
Chalco and Ganzhou Rare Earth compete on rare earth integration in Sichuan
Both Chalco and Ganzhou Rare Earth are interested in integrating the rare earth market in Sichuan and the final plan has not
been fixed so far, according to a report by a local Chinese media.
According to documents from China’s Ministry of Industry and Information Technology (MIIT), Chalco will focus on
integration of rare earth mining, smelting and separating and comprehensive companies in Guangxi, Jiangsu, Shandong and
Sichuan.
Nonetheless, Ganzhou Rare Earth, together with Sichuan Jiangxi Copper Rare Earth Company is set to jointly establish large
rare earth group as the latter is not involved in the six rare earth groups promoted by Chinese government.
Nov 17-21, 2014
A weekly highlight of the rare earth market
Copyright©Beijing Easy Information Technology Co., Ltd
5 Rare Earth Weekly Review Nov 17-21,2014
Both Chalco and Ganzhou Rare Earth want to consolidate the Sichuan rare earth market and it is currently still uncertain
which one will be approved in the future.
The report quoted a local official source said that the company which pays more attention on downstream application fields
will be welcomed and they will not welcome the company only keen to integrate the local rare earth resources.
Global Highlights
Namibia Rare Earths files PEA for heavy rare earth mine at Lofdal
Namibia Rare Earths Inc. announced that it has filed a National Instrument 43-101 (“NI 43-101”) technical report titled
“Preliminary Economic Assessment on the Lofdal Rare Earths Project Namibia”(the “PEA”). The effective date of the PEA is
October1, 2014.
The PEA concludes that the Project currently has the potential to produce an average of 1,500 tonnes per annum of
Separated rare earth oxides (“REO”) which would generate after tax cumulative cash flow of US$259M with a net present
value 10%(“NPV”) of US$148M and an internal rate of return (“IRR”) of 42%.
The PEA indicates that there is considerable potential to expand the current mineral resource and recommends that
additional drilling be carried out to provide for an extended mine life in conjunction with a six month Prefeasibility Study
(“PFS”) program.
Namibia Rare Earths Inc. is developing a portfolio of mineral exploration projects in Namibia and is currently focused on the
accelerated development of the Lofdal Rare Earths Project in northwestern Namibia.
Kyrgyz Supreme Court rules Baotou Hongbo for Kutessay II has no legal claim to licence
Stans Energy Corp. announced that the Supreme Court of Kyrgyzstan has ruled against Baotou Hongbo Technology Company
LTD (Baotau) with respect to its claims that it was the rightful owner of the mining licence for Kutessay II and that its licence
was taken away illegally and without notification.
“This ruling by the Supreme Court of Kyrgyzstan validates the Company’s due diligence process before acquisition of the
mining licence for Kutessay II in an auction in December 2009,” states Rodney Irwin, Interim President and CEO.
Baotau Hongbo Technology Company brought suit against the State Agency for Geology and Mineral Resources of the Kyrgyz
Republic (the “SGA”) intending to reclaim licence rights to Kutessay II. The Inter-district Court of Bishkek ruled in favour of
Baotou Technology Company LTD, overlooking significant evidence and ignoring several substantive procedural issues.
In September 2013, an appeal by Kutisay Mining LLC and the SGA was heard at the Bishkek City Court. The Bishkek City Court
overruled the lower court ruling and held that Baotou had no rights to Kutessay II. Baotou then appealed the Bishkek City
Court ruling to the Supreme Court of Kyrgyzstan which has subsequently upheld the City Court ruling.
Stans Energy Corp. is a resource development company focused on advancing Heavy Rare Earth (HRE) properties in areas of
Central Asia and Russia. In December 2009, Stans acquired a 20-year mining license for the past-producing Kutessay II rare
earth mine from the Kyrgyz Republic. On May 26, 2011 Stans completed the purchase of the Kashka Rare Earth Processing
Plant (KRP) the same plant that previously refined REEs from Kutessay II ores.
The KRP was the only hard rock plant to produce all rare earth elements outside of China, producing 120 different metals,
alloys, and oxides. For over 30 years, Kutessay II produced 80% of the rare earth metals for the Former Soviet Union.
End User Highlights
Mitsui moves into China’s auto parts recycling market
Nov 17-21, 2014
A weekly highlight of the rare earth market
Copyright©Beijing Easy Information Technology Co., Ltd
6 Rare Earth Weekly Review Nov 17-21,2014
Mitsui & Co Ltd, in cooperation with Shenzhen GEM High-Tech Co., Ltd (GEM) and HONEST in Japanm, will move into auto
parts recycling market in China, according to a report by a Japanese media.
The report said that the three companies will set up a joint venture in Spring 2015, and construct a plant in Wuhan, Hubei
province, expected to be put into operation in September 2015.
GEM will hold 45% of the joint venture, 30% for HONEST and the rest 25% for Mitsui & Co Ltd.
Some analysis said that this is the first time that Japanese large company steps into auto parts recycling business in China.
At first, auto engine and motor will be the main two auto parts to be recycled at first, with the annual recycling capacity of
360,000 units. And the recycling products will increase to 14 in the future.
Auto engine and motor will be dismantled from discarded vehicles and then will be sold again after washing and
maintenance.
Pricing Highlights
Praseodymium/neodymium weakens further on lacking motivated buyers
This week praseodymium/neodymium prices continue weak with 99% praseodymium/neodymium metal prices heading
down to RMB352,000-355,000/tonne from RMB355,000-358,000/tonne at the start of the week. Prices for 99%
praseodymium/neodymium oxide maintain at about RMB270,000-275,000/tonne.
450,000
400,000
350,000
300,000
250,000
200,000
Pr/Nd oxide(RMB/t)
150,000
Pr/Nd metal(RMB/t)
100,000
50,000
0
Dysprosium firm stirred by investors’ purchases
Dysprosium oxide prices move up to RMB1,450-1,470/kg from RMB1,420-1,450/kg one week ago and ferro-dysprosium
prices also climb up to RMB1,450-1,470/kg from the basis of RMB1,430-1,460/kg. Many market players are still bullish about
the price direction in the near future.
Nov 17-21, 2014
A weekly highlight of the rare earth market
Copyright©Beijing Easy Information Technology Co., Ltd
7 Rare Earth Weekly Review Nov 17-21,2014
2,500
2,000
1,500
Dy Oxide(RMB/kg)
1,000
Dy Metal(RMB/kg)
FeDy(RMB/kg)
500
0
Terbium oxide offers raised on investors’ speculation
4N terbium oxide prices rise to RMB2,700-2,750/kg from RMB2,600-2,700/kg seen last week as some bullish investors have
restocked the oxide in the past weeks on their expectations of much higher prices.
4500
4000
3500
3000
2500
2000
Tb Oxide(RMB/kg)
1500
Tb Metal(RMB/kg)
1000
500
0
Praseodymium oxide prices still falling
99% praseodymium oxide prices have been falling in the past few weeks. The current price for the rare earth oxide is holding
at RMB400,000-410,000/tonne, down from RMB410,000-420,000/tonne one week ago.
Meanwhile, 99% praseodymium metal prices also drop to RMB560,000-590,000/tonne from RMB570,000-600,000/tonne in
line with falling praseodymium oxide prices.
Nov 17-21, 2014
A weekly highlight of the rare earth market
Copyright©Beijing Easy Information Technology Co., Ltd
8 Rare Earth Weekly Review Nov 17-21,2014
800000
700000
600000
500000
400000
Pr Oxide(RMB/t)
300000
Pr Metal(RMB/t)
200000
100000
0
No easing signs seen in gadolinium price drop
Gadolinium prices have been on the decline during the past week, with 99% gadolinium oxide prices heading down to
RMB68,000-71,000/tonne from RMB70,000-73,000/tonne and ferro-gadolinium prices also falling RMB2,000/tonne to
RMB81,000-84,000/tonne from RMB83,000-86,000/tonne at the start of the week.
140000
120000
100000
80000
99% Gd Oxide(RMB/t)
60000
FeGd(RMB/t)
40000
20000
0
Rare Earth Outlook for Next Week
Many market players are still cautious about the rare earth market in the coming week because downstream demand has
seen little improvement for most rare earth elements, even though some consumers are willing to restock dysprosium and
terbium in small amounts as they are concerned that prices might move higher stirred by some investors’ restocking.
Praseodymium/neodymium prices are expected to hold relatively steady next week or slightly head down and many suppliers
just hold their offers steady or do not quote now in view of their high production costs and low selling prices.
Nov 17-21, 2014
A weekly highlight of the rare earth market
Copyright©Beijing Easy Information Technology Co., Ltd
9 Rare Earth Weekly Review Nov 17-21,2014
Lanthanum and cerium prices might continue to hold at low levels in the days to come with little margin to fall again whilst it
does not rule out that some suppliers might sharply lower prices to offload stocks.
Europium prices are likely to be on the downward track next week due to its so limited downstream application and bearish
market expectations.
On support from investors’ restocking for oxides of terbium and dysprosium, prices might keep firm next week and many
suppliers have raised their quoted prices and are reluctant to accept lower selling prices. Nonetheless, given the expected
consistent lack of downstream demand, prices would not sharply rise.
Praseodymium oxide prices might soften further in late November in line with the flat praseodymium/neodymium market as
well as very slack business.
Nov 17-21, 2014
A weekly highlight of the rare earth market
Copyright©Beijing Easy Information Technology Co., Ltd