Rare earth narrow callback, cost is still not high LED Enterprises

The price of rare earth had jumped all the way up to 3 times, since the mid to late 7 began to fall, but overall, the rate of decline. It is reported that the impact of drastic changes in the price of rare earth, the Pearl River Delta photoelectric production costs rise. Although rare earth prices fall, but the price of smelting products such as phosphor separation is still strong. In addition, the impact of the previous price surge, many rare earth smelting and separation of small businesses discontinued. While the price callback, the background of accelerating integration in the industry, these small enterprises to resume production is not easy.

Rare earth has gone after a slight decline

Latest data provided by the business community, in August 2nd, the domestic light rare earth prices continue to decline slightly, of which 1 million 90 thousand yuan / ton of praseodymium oxide, a decrease of 3.54%; neodymium oxide, $1 million 400 thousand / ton, down by 4.76%. The price of europium oxide from July 20th to 30 million yuan / ton down to (in August 1st) $25 million / ton, a decline of 17%.

Business agency rare earth industry analyst Liu Ruixing told reporters in Nandu, said that this year, the rapid rise in domestic rare earth prices, rose 300%. From the beginning of the second half of 7, rare earth products began to fall across the board, but the relative increase in the previous period, the smaller decline.

Before all the way up the rare earth reason is that this year, the government raised the tax on rare earth resources, and the integration of the industry intensified, in addition to the traders to hoard goods, increasing gains. In April 1st this year, the rare earth mineral resources tax increase, the relevant product tax rate increased from 10 times to 30 times. May 19th, the State Council issued a document, put forward the use of 1-2 years to form a large enterprise led rare earth industry pattern. "

However, due to the rally is too crazy, rare earth enterprises can not afford to buy rare earth products, once the formation of rare earth prices have no market situation. Recently, from the central to the local industry and set off a storm of checks, including the rectification of circulation order. Liu Ruixing analysis, taking the stockpile panic Paohuo, causing the price callback. However, she expects the price of rare earth callback will not be too large. Rare earth has been positioned as a strategic reserve resource, the price is unlikely to rise to the previous low.

More downstream small businesses will be integrated

In the drastic changes in the price of rare earth, downstream enterprises affected severely. Deputy Secretary General of Chinese rare earth industry association president Zhang Anwen received the Nandu reporter interviewed said that in the past two years, the domestic rare earth mining companies and traders profits, has caused the downstream enterprises to shrink, especially for China's high-tech industry a great impact. It is understood that the rare earth smelting and separation products lanthanum oxide, cerium oxide, praseodymium oxide, neodymium oxide, etc. are widely used in high-tech industries, the production of packaging LED lamps, electric cars, wind turbines are rare earth downstream industries. Thus, Zhang Anwen believes that rare earth prices should continue to fall.

Lehman photoelectric lighting device sales director Xu Gang said that the production of phosphor packaging LED lamp will be used by the separation of rare earth smelting, accounted for more than 7% to 8% in the white light device of production cost. This year, affected by the impact of the price of rare earth, fluorescent powder prices rose more than 3 times, although now rare earth prices callback, but the price has not been lowered fluorescent. But at the same time, due to overcapacity, LED lights and other end products in the price. "The rise in phosphors has been compounded by the rising cost of production. "Xu Gang said," the difficulty of market development. "

The rare earth separation and smelting enterprises, especially small and medium enterprises, the greater the impact. Business agency rare earth industry analyst Liu Ruixing told reporters in Nandu, because it can not afford to go too fast or too high prices of rare earth, many small businesses downstream.

Although rare earth prices fell, but the magnitude is small, after the shutdown of small businesses may not be able to restore. Liu Ruixing believes that with the industry consolidation efforts to increase the production of small businesses are likely to be large enterprises annexation. And the price of fluorescent products such as downstream, due to China's increasingly stringent export quotas, and domestic products are still not up to the requirements, Xu Gang is expected, in the long run, the price of imported products will not fall.