1. Briefing of Important News
This week, the price of PrNd increased slightly, prices of DyFe and Tb kept stable. Price from Asian Metal at this weekend presented: PrNd metal 395-400 RMB/KG, DyFe alloy 1900-1920 RMB/KG and Tb metal 5100-5150 RMB/KG.
The Resource Tax Law of the People's Republic of China was adopted at the 12th meeting of the 13th Standing Committee of the National People's Congress on August 26, 2019, and will take effect on September 1, 2020. Among them, the newly announced tax on light rare earth resources is 7%-12%, and that on heavy rare earth resources is 20%. The original resource tax is 27% for South Mine, 11.5% for Baotou Mine, 9.5% for Sichuan Mine and 7.5% for Shandong Mine.
In order to implement Chairman Xi Jinping's important directives on rare earth industry and further standardize the development order of rare earth industry, Jiangxi Provincial Industry and Information Office, Provincial Development and Reform Commission, Finance Department and other 12 departments jointly issued the Notice on Continuously Strengthening the Order Rectification of Rare Earth Industry, which calls for strengthening the management of key links, continuously strengthening industry self-discipline, improving the quality of industry development and conducting regular self-examination work.
2. Analysis of Professional Insiders
The price of rare earth products rose and fell this week. Due to part of the smelting and separating plants exceeded the planned production in the first half of 2019, the supply of rare earth products may tighten in the second half of the year, market confidence boosted. red oxide is more popular in the market at the beginning of the week, market inquiries are more active and actual transactions are better. Upstream manufacturers are generally optimistic which will improve the price of PrNd oxide in the future. Some merchants are holding goods reluctantly, while downstream enterprises are gradually weakening their buying interest and increasing their wait-and-see mood.
Dy oxide and Tb oxide are still affected by Pan-Asian auctions this week. Because the actual unit price of Dy oxide is less than 400,000 RMB/TON in the market, upstream merchants are more worried and have a willingness to reduce prices, downstream enterprises are also in a wait-and-see state, market inquiries are poor, quotations of Dy and Tb oxides are gradually declining. Due to the tight supply of smelting separation plants in the future and the gradual improvement of demand in the lower reaches of September, prices of light rare earth products such as PrNd oxide is expected to rise gradually in the future. Prices of heavy rare earth products such as Dy oxide and Tb oxide have recently focused on the actual auction of Dy oxide in Pan-Asian Company and whether the low-price of Dy oxide in the future will flow into the market in large quantities. If no large number of low prices flows into the market, prices of Dy and Tb oxides and other products may also rise, which affected by the shortage of raw material supply of heavy rare earth mines and the warming of downstream demand in the future. (Shanghai Metals Market)
Listing price on Aug 26th from China Southern Rare Earth
Unit：10,000RMB/TON (EXW price incl. VAT)
3. Tendency Chart (refer to Asian Metal)
