InIInfo
RARE EARTH WEEKLY
REVIEW OCT 8-11,2014
Oct.11,2014 ｜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…………………………………………….P4
Contact us
Author: Margaret Xue
End user Highlights…………………………………………P6
Email: margaret@info-re.com
Pricing Highlights……………………………………………P6
Tel: +86 -10-56 49 01 77
Rare Earth Outlook for Next Week…………………P12
Mobile: +86 13 69 13 25 40 1
2 Rare Earth Weekly Review Oct 8-11,2014
Market Summary
The rare earth market has continued to see a lack of
downstream consumer buying after China’s weeklong
National Day holiday.
Many suppliers become more bearish about the market
outlook in the coming weeks and some suppliers who are
in a hurry to recoup cash flow are keen to further lower
prices to drum up business.
Some buyers want to restock material in small quantities
and they also depress prices to much lower levels.
Praseodymium/neodymium prices have seen marked
drop in the past few days due to the persistent lack of
restocking from downstream NdFeB manufactures. And
prices for many other rare earth elements, such as
neodymium and gadolinium have also been heading
south following praseodymium/neodymium prices.
Dysprosium prices have also edged down because of
without motivated buyers even though suppliers are
holding steady offer prices and are reluctant to accept
lower prices.
Meanwhile, much lower prices for oxides of terbium and
europium have been reported as some suppliers are
engaging to selling off stocks.
However, prices for cerium and lanthanum have been
relatively steady over the past few days due to their
already low prices.
The continuously sluggish markets for rare earth oxides
and metals have dragged down prices for rare earth
concentrates in both southern and northern markets,
which leads market players to become more cautious
about the rare earth market direction in the coming
weeks.
Export markets for some rare earths have been depressed
by a lack of overseas demand against large supply with
prices still drifting lower.
Downstream rare earth consuming sector, such as NdFeB
market, usually sees growing orders in late September
and early October, which will also improve their demand
for praseodymium/neodymium.
Nonetheless, there has been no improvement seen so far,
leading to their sluggish consumption for rare earth
materials.
Oct 8-11, 2014
A weekly highlight of the rare earth market
China’s Rare Earth Prices over Oct 8-11, 2014
Product
Price on Oct 8
Price on Oct 11 Unit
Change
Pr/Nd
Pr/Nd metal
99% min
373,000-378,000 369,000-374,000 RMB/t -4,000
Pr/Nd metal
99% min FOB 83-88
80-85
$/kg
-3
Pr/Nd oxide
99% min
287,000-292,000 285,000-290,000 RMB/t -2,000
Pr/Nd oxide
99% min FOB 62-67
60-65
$/kg
-2
Dy
Dy metal
99% min
1,850-2,050
1,850-2,050
Dy metal
99% min FOB 420-460
400-440
Dy oxide
99% min
1,390-1,420 1,380-1,410
Dy oxide
99% min FOB
310-330
300-320
Fe-Dy
Dy 80% min 1,410-1,440 1,400-1,430
Fe-Dy
Dy 80% min FOB 310-340
310-330
RMB/kg
=
$/kg
-20
RMB/kg
-10
$/kg
-10
RMB/kg
-10
$/kg
-5
RMB/t
=
$/kg
=
RMB/t
=
$/kg
=
RMB/t
=
$/kg
=
RMB/t
=
$/kg
-0.1
RMB/t
=
$/kg
=
RMB/t
=
$/kg
=
La
La metal
99% min
37,000-39,000 37,000-39,000
La metal
99% min FOB
9-10
9-10
La oxide
99.9% min
14,500-16,000 14,500-16,000
La oxide
99.9% min FOB 4.3-4.8
4.3-4.8
La oxide
99.999% min 38,000-40,000
38,000-40,000
La oxide
99.999% min FOB 8-9
8-9
Ce
Ce carbonate
45% REO
6,500-7,000
Ce carbonate
45% REO FOB 2.5-3.0
Ce metal
99% min
38,000-40,000
Ce metal
99% min FOB
10-12
Ce oxide
99.9% min 13,500-14,500
Ce oxide
99.9% min FOB 4.2-4.5
6,500-7,000
2.5-2.8
38,000-40,000
10-12
13,500-14,500
4.2-4.5
Nd
Nd metal
99% min
368,000-373,000 363,000-368,000 RMB/t
Nd metal
99% min FOB
82-85
79-83
$/kg
-5,000
-2.5
Copyright©Beijing Easy Information Technology Co., Ltd
3 Rare Earth Weekly Review Oct 8-11,2014
China Highlights
Chalco Guangxi Guosheng rare earth separating project
approved by MIIT
The project of Jiangsu
Guosheng’s updated rare earth separating production line
in Chalco Guangxi Nonferrous Rare Earth Development Co
has recently been approved by China’s Ministry of Industry
and Information Technology.
China’s Rare Earth Prices over Oct 8-11, 2014
Product
Price on Oct 8
Price on Oct 11 Unit Change
Nd oxide
99% min 280,000-285,000 270,000-275,000 RMB/t -5,000
Nd oxide
99% min FOB
58-61
58-61
$/kg
=
Tb
Tb metal
99% min
3,500-3,700
Tb metal
99% min FOB 780-830
Tb oxide
99.99% min 2,500-2,600
Tb oxide
99.99% min FOB 570-620
3,450-3,650
RMB/kg
-200
780-830
$/kg
-20
2,500-2,600
RMB/kg
=
570-620
$/kg
=
RMB/t
=
$/kg
=
Pr
Located in Congzuo city, Guangxi province, the total
investment of the project is RMB479 million($78.2 million),
with the annual rare earth separating capacity of 5,500
tonnes (REO).
There will be two rare earth separating plants in Guangxi
when the project is to be completed in the future and then
Guangxi’s rare earth separating capacity will be enlarged to
9,000 tpy.
The project aims to become a rare earth separating
demonstration base in southern China, a center for rare
earth production technology research and application and
rare earth trading center to the Association of Southeast
Asian Nations (ASEAN).
Near 10,000 tonnes rare earths traded on Baotou Rare
Earth Products Exchange
Pr metal
99% min 630,000-650,000 630,000-650,000
Pr metal
99% min FOB 145-155
145-155
Pr oxide
99% min 490,000-500,000 490,000-495,000
Pr oxide
99% min FOB 110-115
110-115
RMB/t
$/kg
-2,500
=
Eu
Eu oxide
99.99% min
2,200-2,400
Eu oxide
99.99% min FOB 620-670
2,150-2,350
RMB/kg
-50
620-670
$/kg
=
Gd
Fe-Gd
Gd 73% min 108,000-111,000 108,000-110,000 RMB/t
Gd oxide
99% min
95,000-97,000
95,000-97,000 RMB/t
Gd oxide
99% min FOB
21-26
21-26
$/kg
Gd oxide
99.99% min 165,000-175,000 165,000-175,000 RMB/t
Gd oxide
99.99% min FOB 40-45
37-42
$/kg
=
=
=
=
-3
Y
There
have been over 9,700 tonnes rare earths traded on Baotou
Rare Earth Products Exchange since the opening date of
March 28 and by the end of September the total turnover
has reached around RMB1.7 billion($278 million),
according to a report by Xinhua Agency.
"The latest data is sufficient proof that the exchange has
been in good operation," said Gu Ming, general manager of
the Baotou-based exchange.
Located in Baotou City, north China's Inner Mongolia
Oct 8-11, 2014
A weekly highlight of the rare earth market
Y metal
99.9% min 230,000-260,000 230,000-260,000 RMB/t
Y oxide
99.999% min 35,000-38,000 35,000-38,000 RMB/t
Y oxide
99.999% min FOB 11.7-12.7
11.7-12.7
$/kg
=
=
=
Er
Er oxide
99% min
263,000-273,000 260,000-270,000 RMB/t
Er oxide
99% min FOB
56-61
56-61
$/kg
La/Ce mischmetal
La/Ce mischmetal
(La 35%, Ce 65%) 33,000-36,000 33,000-36,000 RMB/t
-3,000
=
=
Copyright©Beijing Easy Information Technology Co., Ltd
4 Rare Earth Weekly Review Oct 8-11,2014
Autonomous Region, the exchange was initiated by
Baotou Steel Rare Earth (Group) Hi-Tech Co (BSRE),
China's leading rare earth producer, and another 12
firms and institutions with a registered capital of
RMB120 million($19.6 million).
Zhang Zhong, general manager of BSRE, praised the
exchange for its significance and influence in the
industry, as its initiators could obtain 80 percent of
China's total rare earth ore and products each year
respectively.
Liangshan set to establish rare earth industrial
technology institute
China’s Rare Earth Prices over Oct 8-11, 2014
Product
Price on Oct 8
Price on Oct 11 Unit
Change
La/Ce mischmetal
(La 35%, Ce 65%) FOB 8.7-9.2
8.5-9
$/kg
-0.2
Sm
Sm metal
99% min 90,000-100,000
90,000-100,000
RMB/t
Sm metal
99% min FOB 21-24
21-24
$/kg
Sm oxide
99% min
16,000-17,000
16,000-17,000 RMB/t
Sm oxide
99% min FOB
4-5
4-5
$/kg
Mischmetal(Battery Grade)
with low Zn & low Mg
Mischmetal 130,000-140,000 130,000-140,000 RMB/t
with low Zn & Mg
Mischmetal
28-30
28-30
$/kg
with low Zn & Mg FOB
The establishment of Liangshan Rare Earth Industrial
Technology Institute, a nonprofit organization, has
been officially launched recently, according to a report by a local media.
=
=
=
=
=
=
The total investment for the institute is expected to be RMB200 million. And the construction work is tried to be completed
before 2015.
It will mainly rely on private enterprises in the local areas, such as Wankaifeng Rare Earth New Energy Science And
Technology Co and Sichuan Jiangxi Copper Rare Earth Co to develop new products, technology and equipment related to rare
earths.
A Sharp drop seen in Guangdong’s rare earth exports in August
The export amount of rare earths in Guagndong was only 19.3 tonnes in August, falling 73.6% and 83.3% from August 2013
and July 2014 respectively, and the export value in August was RMB8.087 million, down 23.1% from the same month of 2013,
according to customs statistics.
The markets of the US, European Union and Japan were Guangdong rare earths’ main export destinations in August, with
seven tonnes exported to the US, 6.7 tonnes to European Union and three tonnes to Japan.
Guangdong exported 741.8 tonnes rare earths in the first eight months of 2014, up 23.5% year on year and the total export
value in January – August was RMB95.99 million, up 2.6% from the corresponding months of 2013.
Baotou to eliminate 34,610 tpy of outdated rare earth capacity in 2014
Sources from Baotou’s local authority said that Baotou is to eliminate 34,616 tonnes of outdated rare earth capacity this year,
with nine companies involved.
All the nine companies involved have been suspended, with five companies’ production equipment already demolished,
representing a total 21,910 tpy capacity. And the demolishing work for the rest four companies is expected to be completed
towards the end of the month.
Global Highlights
Oct 8-11, 2014
A weekly highlight of the rare earth market
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5 Rare Earth Weekly Review Oct 8-11,2014
7,050 tonnes HREO estimated by Namibia Rare Earths PEA
Namibia Rare Earths has recently released a preliminary economic
assessment (PEA) of the Lofdal Rare Earths project, giving an estimate of
2.88 Mt of indicated mineral resources yielding 9,230 tonnes of rare
earth oxides (REO), of which 7,050 tonnes are estimated to be HREO,
according to a report by the website of Investing News.
The inferred resource stands at 3.28 Mt of mineral resources yielding
8,970 tonnes of REO, of which 6,700 tonnes are estimated to be HREO.
The remainder of the REO is made up of Light Rare Earth oxides (LREO).
Capital costs for the lifespan of the mine is listed as USD $156 million for a 2,500 tonnes per day mine (equivalent to 840,000
tonnes per year). Not a megaproject – like Quest Minerals’ billion dollar Strange Lake development – by any stretch of the
imagination, but the company says the estimated tonnes per day could provide up to 15 percent of the four rare earth heavy
metals needed around the world.
“The PEA confirms the strengths of the project in terms of its favourable rare earth distribution and amenability to
conventional mining and processing, and demonstrates its financial strengths in terms of the low capital costs and significant
cash flows,” said Donald Burton, president and CEO, in a press release.
An important aspect of the project is the possibility of extending its lifetime. In the PEA, the life of mine (LOM) is given as
seven years but the company believes that with additional drilling, that time could be easily expanded.
“We will target additional drilling to significantly expand mineral resources and to establish mineable reserves thereby
extending the life of mine,” said Burton.
The project will be developed as an open pit with a depth of 200 metres. The mine isn’t large enough to support the creation
and funding of a separation plant meaning the final product will be delivered to a third-party facility.
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.
IAMGOLD to sell niobium and rare earths for a total of $530 million
A report on the website of IAMGOLD Corporation said that the company reached an agreement to sell its Niobec mine, one
of the world’s three niobium producers to a group f companies led by Magris Resources Inc. for cash proceeds of $500 million
after tax upon closing.
The sale of Niobec, which is located in Saint-Honoré-de-Chicoutimi in the Saguenay-Lac-Saint-Jean region, Quebec, is to
include the adjacent rare earth element ("REE") deposit.
The total consideration of $530 million for the transaction is comprised of a cash payment of $500 million payable on closing,
as well as an additional $30 million when the adjacent REE deposit goes into commercial production. A 2% gross proceeds
royalty will be payable on any REE production.
"This sale unlocks the value of Niobec for our shareholders, positions IAMGOLD as a pure gold play and significantly improves
our liquidity, which provides us with the opportunity to further improve the grade and cost structure of our portfolio of gold
assets," said the company's president and CEO, Steve Letwin.
Oct 8-11, 2014
A weekly highlight of the rare earth market
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6 Rare Earth Weekly Review Oct 8-11,2014
IAMGOLD is a mid-tier gold producer with five operating gold mines (including current joint ventures) on three continents
and one of the world’s top three niobium mines. A solid base of strategic assets in Canada, South America and Africa is
complemented by development and exploration projects and continued assessment of accretive acquisition opportunities.
New technology expected to help Russia return to rare earth market
In the next three years, the Urals will launch production using new technology to extract rare earth metals from uranium ore.
Scientists expect the project to help Russia return to a market that not so long ago was completely dominated by China,
according to a report covered by the website of rbth.com.
The report said that Scientists from the Ural Federal University have developed a unique technology to extract rare earth
metals from uranium ore. Their scientific acumen lies in the creation of a sorbent that makes the extraction possible. Pilot
production will be set up using this technology in the near future. According to the scientists, this will slash the Russian
market’s need for rare earth metals by a third, reduce the dependence of many industrial sectors on imports and put
pressure on China, which has a monopoly on the world rare earth metals market.
Sergei Kortov, a professor of innovation at Ural Federal University, is confident that this unique technology will play a crucial
role in import substitution for both raw materials and finished products, an important issue for Russia these days. It will also
keep rare earth metals prices at bay on the world market. “There really isn’t this type of production in Russia right now, even
though these materials are needed in many industries,” Kortov told RBTH. “Russia would find it economically beneficial to
resume its own production of rare earth metals so that prices for the final product don’t increase.” In the next three years
scientists need to create a formula for pilot production of rare earth metals using a unique uranium-leaching technology.
End User Highlights
Hunan Corun gains RMB35.48 million government subsidy for related new energy vehicle projects
Hunan Corun New Energy Co announced that its wholly-owned subsidiary –-- Hunan Copower EV Battery Co has recently
gained a total of RMB35.48 million government subsidy.
The subsidy is used for new energy vehicle projects, with RMB11.78
million for the project of the annual 48,000 units rare earth hydrogen
storage alloy batteries and RMB23.7 million for the plan of NI-MH battery
for Hybrid Electric Vehicle.
Hunan Corun New Energy Co was established in January 1998 and listed
on Shanghai stock exchange in September 2003. It is an advanced
technology enterprise specialized in new energy material, advanced
batteries, BMS and their extension products researching, manufacturing
and sale.
Corun group consists the following subsidiary companies. They are Changsha Lyrun New Materials Co., LTD, Lanzhou
JinChuan Corun Battery Co.,LTD, YiYang Corun Battery Co.,LTD, Hunan Copower EV Battery Co.,LTD, Shanon Corun Energy
Co.,Ltd (Japan), Corun Trading Co.,Ltd(US), Societe Corun New Energy SAS(EUROPE). Furthermore, the group is also
involved into the establishment of Hunan Rare Earth Industrial Group, Corun PEVE(CHINA) Automotive Battery Co.,LTD.
Pricing Highlights
Oct 8-11, 2014
A weekly highlight of the rare earth market
Copyright©Beijing Easy Information Technology Co., Ltd
7 Rare Earth Weekly Review Oct 8-11,2014
Pr/Nd prices continue falling
Much lower prices of about RMB367,000-368,000/tonne for 99% praseodymium/neodymium metal are being reported in the
market, compared to offers of about RMB375,000/tonne quoted by many suppliers.
In the meantime, lower prices of about RMB285,000/tonne for 99% praseodymium/neodymium oxide and RMB240,000250,00/tonne before duty for the rare earth oxide have also been reported in the market.
450,000
400,000
350,000
300,000
250,000
Pr/Nd oxide
(RMB/t)
Pr/Nd metal
(RMB/t)
200,000
150,000
100,000
50,000
0
Dysprosium prices softened on persistently lacking demand
99% dysprosium oxide prices have softened to about RMB1,390/kg recently and lower prices of about RMB1,380/kg are also
reported in the market.
Some suppliers have decreased their offer prices for ferro-dysprosium (Dy 80%) to about RMB1,420-1,430/kg from
RMB1,440-1,450/kg seen in late September, and prices of about RMB1,410-1,420/kg are accepted.
Oct 8-11, 2014
A weekly highlight of the rare earth market
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8 Rare Earth Weekly Review Oct 8-11,2014
1500
1480
1460
1440
1420
Dy oxide(RMB/kg)
1400
Fe-Dy(RMB/kg)
1380
1360
1340
Praseodymium oxide prices still weak on sluggish Pr/Nd market
Suppliers maintained 99% praseodymium oxide at about RMB490,000/tonne and higher prices of about RMB500,000/tonne
are unaccepted by buyers now, even though some small activities have been reported at RMB500,000-510,000/tonne.
Compared to offers of about RMB490,000/tonne quoted by some producers, low prices of about RMB470,000480,000/tonne are also being reported in the market at the moment.
Pr oxide (RMB/t)
550000
540000
530000
520000
510000
500000
Pr oxide (RMB/t)
490000
480000
470000
460000
Europium oxide prices down amid stagnant sales
Europium oxide prices have been on the downward track in response to so stagnant business due to its very limited
downstream application.
Oct 8-11, 2014
A weekly highlight of the rare earth market
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9 Rare Earth Weekly Review Oct 8-11,2014
Lower prices of RMB2,150-2,200/kg for 4N europium oxide have been seen in the market over the past few days even though
some suppliers are still quoting RMB2,400-2,500/kg at the moment.
Eu oxide(RMB/kg)
3500
3000
2500
2000
1500
Eu oxide(RMB/kg)
1000
500
0
Erbium oxide prices weak on falling prices across rare earth complex
99% erbium oxide is currently available at about RMB265,000/tonne, and lower prices of about RMB260,000/tonne are also
being reported in the market. However, some small activities for the rare earth oxide have been reported at about
RMB270,000/tonne recently.
China’s rare earth concentrate prices fall in both southern and northern markets
China’s rare earth concentrate prices have seen marked reductions in both southern and northern markets in the past days
dragged down by the persistently flat downstream rare earth markets.
Prices for medium yttrium and rich europium rare earth concentrates in southern China are reported at around
RMB150,000/tonne at the moment, compared to about RMB160,000-170,000/tonne for September published by Ganzhou
Rare Earth Association.
Meanwhile, some rare earth carbonate (Pr+Nd>=20%) has been concluded at RMB20,500/tonne before duty in the past few
days, down from RMB21,000-22,000/tonne before duty seen in the mid of last month.
Prices for rare earth concentrate in Baotou have also moved down to about RMB275/mtu before duty from about RMB285290/mtu before duty in view of falling prices for lanthanum, cerium and praseodymium/neodymium.
The drop in rare earth concentrate prices have aroused more bearish market sentiment and some market players warned
that prices for some rare earth elements, such as praseodymium/neodymium might head further down in the days to come.
Neodymium oxide prices fall on Pr/Nd
99% neodymium oxide is currently available at RMB270,000-275,000/tonne, compared to about RMB285,000/tonne in the
past few weeks.
Oct 8-11, 2014
A weekly highlight of the rare earth market
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10 Rare Earth Weekly Review Oct 8-11,2014
Nd oxide(RMB/t)
300000
295000
290000
285000
280000
275000
Nd oxide(RMB/t)
270000
265000
260000
La/Ce mischmetal prices move down again
Lanthanum/cerium mischmetal prices have moved down again with a lack of strong consumer buying as well as weakening
prices for lanthanum and cerium.
Lanthanum/cerium mischmetal (La 35%, Ce 65%) is currently available at about RMB33,000-34,000/tonne, compared to
about RMB36,000-37,000/tonne seen one month ago.
La/Ce mischmetal (RMB/t)
39000
38000
37000
36000
35000
La/Ce mischmetal (RMB/t)
34000
33000
32000
Export prices for lanthanum/cerium mischmetal have moved down again during the past days in response to the still
entrenched smuggling problem as well as recently falling domestic prices.
Lanthanum/cerium mischmetal (La 35%, Ce 65%) is available at about $8.5-9/kg at the moment, compared to offer prices of
about $9-9.5/kg in the past few weeks.
Oct 8-11, 2014
A weekly highlight of the rare earth market
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11 Rare Earth Weekly Review Oct 8-11,2014
Overseas buyers have been restocking material depending on their orders. However, there have been ample availability seen
around the market and much cheaper prices of $7-7.5/kg reported.
La/Ce mischmetal FOB($/kg)
9.8
9.6
9.4
9.2
9
8.8
La/Ce mischmetal FOB($/kg)
8.6
8.4
8.2
Gadolinium prices down in line with Pr/Nd
Ferro-gadolinium (Gd 73%) is available at about RMB108,000-109,000/tonne at the moment, compared to about
RMB112,000-113,000/tonne towards the end of September.
Meanwhile, gadolinium oxide prices are holding at about RMB95,000-96,000/tonne at the moment even though some offers
are being quoted at about RMB100,000/tonne.
140000
120000
100000
80000
60000
Gd oxide(RMB/t)
FeGd(RMB/t)
40000
20000
0
Cerium carbonate export prices move down on weak domestic prices
Oct 8-11, 2014
A weekly highlight of the rare earth market
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12 Rare Earth Weekly Review Oct 8-11,2014
Export prices for cerium carbonate (Ce 45%) are currently holding at about $2.5-2.6/kg, down from about $2.8-3/kg in the
past few weeks.
Nonetheless, some suppliers are still quoting close to $3/kg for the carbonate but few overseas buyers are keen to restock
material at the pricing level.
Ce carbonate($/kg)
3.5
3
2.5
2
1.5
Ce carbonate($/kg)
1
0.5
0
Rare Earth Outlook for Next Week
The rare earth market is full of bearish sentiment at the moment and most market players are concerned that prices might
continue down in the days to come in view of the unimproved downstream markets, such as the main consuming field NdFeB
magnet industry.
Info-RE believed that buyers would not return to the market in the near future because of the falling prices and they would
not take risk in restocking material now. However, as some producers are reluctant to further decrease selling prices due to
high production cost, prices would not sharply head down next week.
Praseodymium/neodymium prices might head further down in the coming week, while prices for europium, dysprosium, and
terbium might keep relatively steady because of their relatively low prices as well as supported by prices for ion-absorption
rare earth concentrate.
Prices for lanthanum and cerium are also expected to hold generally steady next week because of their already low prices.
Export prices would continue to be under pressure because overseas buyers might not come back to the market in the near
future and some of them have been trying to depress purchase prices despite for small business.
Oct 8-11, 2014
A weekly highlight of the rare earth market
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