InIInfo
RARE EARTH WEEKLY
REVIEW NOV 24-28,2014
Nov.28,2014 ｜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…………………………………………P6
Email: margaret@info-re.com
Pricing Highlights……………………………………………P6
Tel: +86 -10-5649-0177
Rare Earth Outlook for Next Week…………………P9
Fax: +86 -10-5649-0377
Mobile: +86-136-9132-5401
2 Rare Earth Weekly Review Nov 24-28,2014
Market Summary
This week the rare earth market has continued to see a
lack of strong downstream consumer buying even though
some business has been reported earlier this week.
Nonetheless, prices for many rare earth elements have
seen signs of stabilizing and most suppliers are reluctant
to sell from stocks cheaply.
Meanwhile, terbium and dysprosium prices have been
firming up in China over the past week on support from
bullish market expectations underpinned by investors’
restocking at Fanya Metal Exchange.
The firm prices in China’s domestic market have failed to
support their export prices with most overseas buyers still
staying on the sidelines due to the uncertain China’s
export restrictions on rare earth export in 2015 as well as
their slack orders from customers.
Market sources predicted that prices might keep
relatively steady in early December as most suppliers
would not cut prices again to drum up business and they
did not rule out prices for some elements would see
improvement. However, it is still difficult to see marked
increases in prices in the short term because of the
expected shortage of downstream demand from major
consuming sectors, such as NdFeB magnet industry.
In Japan, according to a report by Nikkei, mud rich in rareearth metals in the seabed near an isolated Japanese
coral atoll is widely distributed and not as deep as initially
thought, researchers have discovered, increasing the
possibility of commercial mining.
Many scientists believe that applying existing
technologies would make mining possible. The
consortium is examining a variety of technologies,
including pumping air into the seabed to draw up the
mud. But rare-earth prices have fallen considerably from
the peak, so deep-sea mining may not be economically
feasible unless the costs can be cut.
Meanwhile, the Australia-based Alkane Resources expects
to receive approvals for its $1 billion rare earths project in
the first quarter of 2015, which it anticipates will pave the
way for a rerating of its shares as it finalises the financing
of the project.
Alkane will not be processing its rare earths itself, but
selling the material to third parties for treatment, which
significantly reduces its risk profile.
Nov 24-28, 2014
A weekly highlight of the rare earth market
China’s Rare Earth Prices over Nov 24 -28, 2014
Product Price on Nov 24
Price on Nov 28
Unit
Change
Pr/Nd
Pr/Nd metal
99% min 350,000-355,000 350,000-355,000
RMB/t
Pr/Nd metal
99% min FOB 80-83
80-83
$/kg
Pr/Nd oxide
99% min
270,000-275,00 272,000-275,000 RMB/t
Pr/Nd oxide
99% min FOB 57-60
57-60
$/kg
=
=
+1,000
=
Dy
Dy metal
99% min
1,850-1,950
Dy metal
99% min FOB 400-440
Dy oxide
99% min
1,450-1,470
Dy oxide
99% min FOB
300-320
Fe-Dy
Dy 80% min 1,460-1,480
Fe-Dy
Dy 80% min FOB 310-330
1,850-2,000
400-440
1,470-1,490
300-320
1,480-1,500
310-330
RMB/kg
$/kg
RMB/kg
+25
=
+20
$/kg
=
RMB/kg
+20
$/kg
=
RMB/t
=
$/kg
=
RMB/t
=
$/kg
=
RMB/t
-500
$/kg
=
La
La metal
99% min
35,000-36,000
La metal
99% min FOB 9-9.5
La oxide
99.9% min
13,500-14,500
La oxide
99.9% min FOB 4.1-4.5
La oxide
99.999% min 35,000-38,000
La oxide
99.999% min FOB 7.5-8
35,000-36,000
9-9.5
13,500-14,500
4.1-4.5
35,000-37,000
7.5-8
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
36,000-37,000 36,000-37,000 RMB/t
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
345,000-350,000
Nd metal
99% min FOB
78-82
342,000-347,000 RMB/t
75-79
$/kg
Copyright©Beijing Easy Information Technology Co., Ltd
-3,000
-3
3 Rare Earth Weekly Review Nov 24-28,2014
China Highlights
China’s rare earth exports rising 26.04% in Jan-Oct
China exported 22,184 tonnes rare earths in the first ten
months of 2014, representing an increase of 26.04%
compared to the same period of 2013, according to a
report covered by Reuters.
2,014 tonnes rare earths were exported in October 2014,
slightly down 2.28% from October 2013.
China's Export Amount
in Jan-Oct(tonne)
Japan
The US
Italy
Netherlands
7,000 tpy rare earth separating plant in Guangdong to
commence construction work in December
A project of 7,000 tpy rare earth separating plant in Xinfeng
county, Shaoguan city in Guangdong province will start
construction work in December, according to sources from
the local area.
The project, with the total investment of RMB1 billion, is
led by China Nonferrous Metal Industry’s Foreign
Engineering And Construction Co., Ltd (NFC) and it owns
the annual processing capacity of 7,000 tonnes for rare
earth concentrate.
Ganzhou to award to rare earth deep-procession and
application products
Related government agencies in Ganzhou city, Jiangxi
province have jointly issued a policy recently on the reward
of deep-procession and application products in rare earth
and tungsten sectors.
According to the policy, high-end rare earth NdFeB
magnets (rough magnets involved) and rare earth
permanent magnetic motors which use rare earth
materials originated from the local city will be awarded 5%
of its sales revenue by the local government.
Baotou city, Inner Mongolia has also issued similar policy to
subsidy the development of downstream rare earth
applications.
Nov 24-28, 2014
A weekly highlight of the rare earth market
China’s Rare Earth Prices over Nov 24 -28, 2014
Product
Price on Nov 24 Price on Nov 28
Unit
Change
Nd oxide
99% min 261,000-266,000 260,000-265,000 RMB/t
-1,000
Nd oxide
99% min FOB
54-57
54-57
$/kg
=
Tb
Tb metal
99% min
3,500-3,600
Tb metal
99% min FOB
780-830
Tb oxide
99.99% min 2,700-2,750
Tb oxide
99.99% min FOB 570-620
3,500-3,600
RMB/kg
=
780-830
$/kg
=
RMB/kg
+50
$/kg
+30
2,750-2,800
600-650
Pr
Pr metal
99% min
560,000-590,000 560,000-580,000 RMB/t -5,000
Pr metal
99% min FOB
128-138
128-133
$/kg
-2.5
Pr oxide
99% min
400,000-410,000 395,000-405,000 RMB/t -5,000
Pr oxide
99% min FOB
100-105
98-103
$/kg
-2
Eu
Eu oxide
99.99% min
1,800-1,900
Eu oxide
99.99% min FOB
600-650
1,700-1,800
550-600
RMB/kg -100
$/kg
-50
Gd
Fe-Gd
Gd 73% min 81,000-83,000
81,000-83,000
Gd oxide
99% min
68,000-71,000
68,000-70,000
Gd oxide
99% min FOB
21-26
21-26
Gd oxide
99.99% min 140,000-150,000 140,000-150,000
Gd oxide
99.99% min FOB 37-42
37-40
RMB/t
=
RMB/t
-500
$/kg
=
RMB/t
=
$/kg
-1
RMB/t
=
Y
Y metal
99.9% min 230,000-260,000 230,000-260,000
Y oxide
99.999% min 32,000-34,000 32,000-34,000
Y oxide
99.999% min FOB 11.7-12.7
11.5-12.5
RMB/t
$/kg
=
-0.2
Er
Er oxide
99% min
240,000-250,000 237,000-242,000
Er oxide
99% min FOB
51-56
51-56
La/Ce mischmetal
La/Ce mischmetal
(La 35%, Ce 65%) 33,000-35,000 32,000-34,000
RMB/t
$/kg
-5,000
=
RMB/t -1,000
Copyright©Beijing Easy Information Technology Co., Ltd
4 Rare Earth Weekly Review Nov 24-28,2014
Production value in rare earth industry in Changting,
Fujian province rising in Jan-Oct
Sources from Changting, Fujian province said that the
production value in rare earth industry in the local
area in the first ten months of the year rose to
RMB2.79377 billion, representing a sharp increase of
45.1% compared to the corresponding period of
2013.
There are three scale rare earth enterprises in
Changting’s rare earth industry, including Jinlong Rare
Earths, Shin-Etsu (Changting) Science & Technology
and Chiyou Rare Earths.
In January-October, Changting Jinlong’s production
value increased 37.40% year on year to RMB2.554
billion and a sharp rise of about 80.7% was seen in its
production value in October, achieving RMB381.32
million.
China’s Rare Earth Prices over Nov 24 -28, 2014
Product
Price on Nov 24 Price on Nov 28 Unit Change
La/Ce mischmetal
(La 35%, Ce 65%) FOB 8.5-9
8.3-8.8
$/kg -0.2
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)
with low Zn & low Mg
Mischmetal 120,000-130,000 120,000-130,000 RMB/t
=
with low Zn & Mg
Mischmetal
23-25
with low Zn & Mg FOB
23-25
$/kg
=
The production value at Shin-Etsu (Changting) Science & Technology, a Japanese company, achieved RMB140.6 million in the
first ten months of the year, soaring 112.2% from the same months of last year.
China to reinforce regulation on environment pollution
General Office of the State Council announced on November 27 that China will seriously
crack down on illegal sewage and illegal companies will be blacklisted and also be
published.
Market sources believe that the move means that the crackdown on illegal rare earths in
China will be further strengthened which is favorable for the market regulation and healthy
competitiveness.
As Info-RE reported, China’s eight government authorities with Ministry of Industry and Information Technology (MIIT) and
Ministry of Land and Resources involved, have jointly launched a special campaign to crack down illegal rare earth mining,
trading and production between October 10, 2014 to March 31,2015.
Fanya’s Tb and Dy inventories seen marked rises again, prices underpinned
Inventories for oxides for terbium and dysprosium at Fanya Metal Exchange were seen marked increases again last week,
according to figures from the Yunnan-based exchange.
The exchange said that its stocks for terbium oxide on November 21, 2014 were 13 tonnes, sharply up 62.5% from the
inventory of eight tonnes on November 14.
Meanwhile, its stocks for dysprosium oxide on November 21 were 181.95 tonnes, rising about 18.19% from the basis 153.95
tonnes seen on November 14.
According to the exchange’s latest figures, its stocks for terbium oxide on November 28 are 13 tonnes, unchanged compared
to the amount on November 21. And the stocks for dysprosium oxide are 186.95 tonnes, up 5 tonnes from 181.95 tonnes on
November 21.
On support from the increase in Fanya’s inventories, terbium and dysprosium prices firmed up last week and many market
players are still positive about the price direction in the short term.
Nov 24-28, 2014
A weekly highlight of the rare earth market
Copyright©Beijing Easy Information Technology Co., Ltd
5 Rare Earth Weekly Review Nov 24-28,2014
Details for inventories of oxides of Tb and Dy at Fanya Metal Exchange:
Terbium Oxide(tonne)
28/11/2014
21/11/2014
14/11/2014
07/11/2014
13
13
8
5
Dysprosium Oxide(tonne)
186.95
181.95
153.95
131.95
Global Highlights
Japan’s possibility of commercial mining rare earth in the seabed increasing
Mud rich in rare-earth metals in the seabed near an isolated Japanese coral atoll is widely distributed and not as deep as
initially thought, researchers have discovered, increasing the possibility of commercial mining, according to a report by Nikkei
on November 25.
University of Tokyo professor Yasuhiro Kato had found in 2012 high concentrations of rare earths in mud sampled from
beneath the ocean floor near Minami-Torishima, roughly 1,900km southeast of Tokyo. And in a study last year by the
university and the Japan Agency for Marine-Earth Science and Technology, or Jamstec, researchers had discovered that the
concentration exceeds 5,000 parts per million -- more than 30 times that of major Chinese mines.
This time, Kato and researchers from Jamstec and elsewhere studied the seabed about
250km south of the island in Japan's exclusive economic zone from mid- to late
October. Mud containing high concentrations of rare earths was found widely
distributed just 2 to 4 meters under the seabed. This makes extraction easier than if
the mud were more than 10 meters down as initially believed.
The researchers plan to closely look at other areas next spring and after, in addition to
conducting a feasibility study for mining. "The amount [of rare earths] used in Japan in
a year can be secured in a single square kilometer of these waters," Kato said.
Researchers from the University of Tokyo and the Tokyo Institute of Technology joined with Mitsui Mining and Smelting,
offshore drilling rig operator Modec, rare-earth-alloy maker Santoku and others this month to form a consortium to promote
exploitation of resources from seabed mud. The group aims to develop mining and refining technologies necessary for
commercial production of rare earths from mud pumped up from 5,600 meters to 5,800 meters beneath the surface of the
ocean.
Last year, the government positioned mining rare-earth metals from the seabed as a goal of its ocean policy. But developing
ocean-floor resources at depths beyond 5,000 meters is unprecedented.
Many scientists believe that applying existing technologies would make mining possible. The consortium is examining a
variety of technologies, including pumping air into the seabed to draw up the mud.
But rare-earth prices have fallen considerably from the peak, so deep-sea mining may not be economically feasible unless the
costs can be cut.
Alkane Resources expects to receive green light for its rare earth project in Q1 2015
Alkane Resources expects to receive approvals for its $1 billion rare earths project in the first
quarter of 2015, which it anticipates will pave the way for a rerating of its shares as it finalises the
financing of the project, according to a report by the Sydney Morning Herald.
The report said that only a small portion of the capital needed will be raised from shareholders,
with other financing options such as seeking a cornerstone investor in the project along with
project financing and funding from foreign government agencies anticipated to provide much of
the needed capital.
Nov 24-28, 2014
A weekly highlight of the rare earth market
Copyright©Beijing Easy Information Technology Co., Ltd
6 Rare Earth Weekly Review Nov 24-28,2014
The extended difficulties that Lynas Corp and the United States company Molycorp have experienced commissioning new
rare earths processing plants have pushed the share prices of both companies to penny dreadful levels amid doubts about
their prospects for financial survival given their heavy debt burdens.
Ahead of the receipt of government approvals for Alkane's rare earths project, which is located near Dubbo in western NSW,
Alkane has launched detailed engineering studies so that once the green light is received, it can finalise the financing and
fast-track work on the project.
Unlike Lynas and Molycorp, Alkane will not be processing its rare earths itself, but selling the material to third parties for
treatment, which significantly reduces its risk profile.
Oversupply of rare earths has pushed prices for many products to long-term lows. However, with China expected to absorb a
rising volume of its own production, this is expected to see key product prices rise over the next few years.
End User Highlights
Galaxy Magnets: Rare earth prices expected to head up in the long term
Given the generally short supply for rare earth materials as well as China’s government consolidation and integration on rare
earth resources, rare earth prices should steadily rise in the long term, according to Galaxy Magnets.
Meanwhile, much lower prices for some rare earth elements have disappeared in China’s market over the last few days with
suppliers not keen to offload stocks at low prices even though it is still hard to see marked improvement in prices due to a
persistent lack of orders from downstream customers.
The Galaxy Magnets was established In July 1993, specializing in the research, development and production of bonded NdFeB
magnet as well as samarium-cobalt magnet. It is the biggest manufacturer of bonded NdFeB magnets in the world and the
company was listed on GEM, Shenzhen Stock Exchange Market in October 2010.
Zhmag: A 50% rise in NdFeB magnet sales expected in 2015
Sources from Yantai Zhenghai Magnetic Material Co., Ltd (Zhmag) said that given its current
orders from customers, the company’s NdFeB sales volume in 2015 is expected to rise about
50%.
The Yantai city, Shandong province based company’s sales volume for NdFeB magnets in
2013 was 1,720 tonnes, and is expected to rise over 50% in 2014.
The company’s development of overseas market has gone smoothly after it reached
agreement with Hitachi Metals on patented rare earth magnet technology in May 2013, with
orders from auto EPS and electronic product sectors exceeding its expectations.
And orders for the magnets from China’s NEV and air-conditioner markets have also seen marked increases.
The company predicted that its sales volume of NdFeB magnets to electronic sector might increase to 300 tonnes in 2015
from the the current 150 tonnes basis, which is mainly used to produce electro acoustic products.
Meanwhile, Zhmag is also bullish about its orders from EPS and VCM makers, expecting sharp rise in orders in the future.
Pricing Highlights
Lower Pr/Nd prices disappeared, some offers raised
Nov 24-28, 2014
A weekly highlight of the rare earth market
Copyright©Beijing Easy Information Technology Co., Ltd
7 Rare Earth Weekly Review Nov 24-28,2014
Suppliers are not keen to sell praseodymium/neodymium at lower prices later this week and some raise offer prices for the
oxide and metal. 99% praseodymium/neodymium oxide are holding at RMB272,000-275,000/tonne, compared to
RMB270,000-275,000/tonne. And 99% praseodymium/neodymium metal prices are steady RMB350,000-355,000/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 prices still firming
99% dysprosium oxide prices continue up this week, currently holding about RMB1,470-1,490/kg, up from RMB1,4501,470/kg at the start of the week. And ferro-dysprosium prices also move up to RMB1,480-1,500/kg from RMB1,460-1,480/kg.
2500
2000
1500
Dy Oxide(RMB/kg)
1000
Dy Metal(RMB/kg)
FeDy(RMB/kg)
500
0
Terbium oxide prices continue up
4N terbium oxide is available at about RMB2,750-2,800/kg now, rising from RMB2,700-2,750/kg one week ago.
Nov 24-28, 2014
A weekly highlight of the rare earth market
Copyright©Beijing Easy Information Technology Co., Ltd
8 Rare Earth Weekly Review Nov 24-28,2014
4500
4000
3500
3000
2500
2000
Tb Oxide(RMB/kg)
1500
Tb Metal(RMB/kg)
1000
500
0
Praseodymium remains weak, easing signs seen in price decline
Signs of easing have been seen in price decline of praseodymium oxide over the past days even though the market has
remained flat. 99% praseodymium oxide prices are holding at about RMB395,000-405,000/tonne, down RMB5,000/tonne
from RMB400,000-410,000/tonne seen at the beginning of this week.
800000
700000
600000
500000
400000
Pr Oxide(RMB/t)
300000
Pr Metal(RMB/t)
200000
100000
0
Europium prices keep heading south
Little improvement has been seen in europium oxide market recently. 4N europium oxide is available at RMB1,700-1,800/kg
now, compared to about RMB1,800-1,900/kg one week ago.
Nov 24-28, 2014
A weekly highlight of the rare earth market
Copyright©Beijing Easy Information Technology Co., Ltd
9 Rare Earth Weekly Review Nov 24-28,2014
Eu Oxide(RMB/kg)
3000
2500
2000
1500
Eu Oxide(RMB/kg)
1000
500
0
Export prices move down for neodymium and praseodymium in line with reduced domestic prices
Given weak overseas demand as well as reduced domestic prices, export prices for metals neodymium and praseodymium
have also moved down. Export prices for 99% neodymium metal have fallen to $75-79/kg from $78-82 and $128-133/kg for
99% praseodymium metal, down from $128-138/kg.
160
140
120
100
80
Nd Metal($/kg)
60
Pr Metal($/kg)
40
20
0
Rare Earth Outlook for Next Week
Rare earth prices are expected to maintain relatively steady in the coming week as suppliers are not keen to continue to
lower prices to secure business. It might be difficult for buyers to obtain rare earth materials at lower prices even though
prices are also not expected to see marked improvement next week.
Terbium and dysprosium prices are expected to keep firming up in early December supported by positive expectations.
Nov 24-28, 2014
A weekly highlight of the rare earth market
Copyright©Beijing Easy Information Technology Co., Ltd
10 Rare Earth Weekly Review Nov 24-28,2014
Prices for praseodymium/neodymium might also maintain stable and some suppliers would slightly raise their offer prices.
Nonetheless, demand from NdFeB makers is expected to remain flat.
The expected stabilization of praseodymium/neodymium prices would also underpin market prices for gadolinium,
neodymium and praseodymium and prices for these rare earth elements would also keep steady.
In addition, export markets for most materials will continue quiet in the following week because overseas market players
have been awaiting the change in China’s export restrictions on rare earth exports in 2015. Given the expected removal of
China’s export tariffs and export quota system, China’s rare earth export prices might fall in the first half of 2015.
Nov 24-28, 2014
A weekly highlight of the rare earth market
Copyright©Beijing Easy Information Technology Co., Ltd