Rare, multi species prices even high innovation, there is still much room for follow-up

  February 2017, benefit from the fundamentals support, A shares have set off a wave of Elements Periodic Table Market, copper, nickel, cobalt, tungsten, molybdenum, titanium related stocks rose. Securities Times • e reporter learned that the recent price of praseodymium, neodymium, dysprosium based rare earth products rose significantly. Rare earth is at the beginning of the February index rose nearly 10%, but the distance is still a big gap between the high point of the cycle. Industry analysts believe that, with the rare earth industry standard rectification intensified, prices still have much room for growth.Rare earth price increases  In May 27th, the third wave of rare earth purchasing and storage ended. Among them, the EU bid price than the first year of storage and storage increased by 120 thousand / ton, neodymium oxide tender price also increased 15 thousand / ton compared to the last storage. Despite the price increase, but the current round of bidding total 3705 tons, winning only 1665 tons, the flow rate is larger.  Part of the reason for the flow of varieties is the purchasing and storage price lower than the market price, business outlook bullish and reluctant to ship.” Henan, Luoyang, a rare earth industry told the securities times e reporter, rare earth variety price experienced since 2011 after the price decline, and by 2016 into the price trough. But since February 2017, the rare earth industry boom has improved significantly, many varieties of price hikes, continue to hit new highs for the year. Over the past 3 months, rare earth varieties rose generally between 10% and 20%, of which praseodymium, neodymium, dysprosium related products rose the most obvious.  Business community statistics show that PR Nd oxide domestic producer prices since February 6th started up, from 259 thousand yuan / ton, up to 301 thousand and 500 / ton, or 16.41%. During the period, the price of neodymium oxide rose 11.97%; praseodymium oxide rose 14.62%; PR nd alloys rose by 13.15% compared with the beginning of the year. Recently, metal dysprosium since May low start up, has now risen 3.03%; metal praseodymium price within 1 months has also risen 2.61%.Frequent storage + strike violationsRare earth resources is the strategic resource of the nation, the six group including rare earth group, northern rare earth group, Minmetals Xiamen tungsten industry, occupy most of the market. However, since 2011, the excess supply of rare earth industry gradually obvious, a large number of “Black Rare Earth” impact, rare earth prices continued to fall.The current price of rare earth is back, that is, with the national crackdown on “Black Rare Earth” intensified.In October 2016, the rare earth industry development plan issued by the State Ministry of industry “(2016-2020)” put forward by 2020, mining, smelting separation and comprehensive utilization of resources into six group management, and strict market access system, in addition to the 6 large rare earth enterprises group, no new mining rights, in one fell swoop of new mining limited.At the same time, around the fight against illegal rare earth special action is also a large area of propulsion, super plan production, procurement of illegal mineral products enterprise reduction plan until all canceled plans to trace illegal mineral products, shall be punished according to law.In addition to strict control of output, in 2017 the state frequently purchasing and storage, but also further enhance the confidence of the rare earth market.”In January 2017, when the first purchase and storage bidding, the price than the last bid price overall floating 2% to 8%, turnover rate of 98%.” Rare earth industry analyst Ye Jianjun said that since 2017, the national rare earth industry purchasing and storage frequency increased, but the size of each purchase and storage reduced. With the purchasing and storage prices have gradually increased, each time a slight premium, the formation of positive expectations of the market.In addition, the strengthening of the rare earth market is accompanied by a boost in overseas demand. Customs administration data show that in April 2017, China exported 5068 tons of rare earth, an increase of 374 tons compared with the previous month, an increase of 37.12%; China’s cumulative export of rare earth 1.76 tons by 1, an increase of 18.4% compared to the same period in April.Still have room to rise  “Although the price of rare earth has gone up more than March, it is still at a historic low and the space for follow-up is huge.”  Ye Jianjun said that as of June 12th, the rare earth index was 309 points, up 283 points from February 11th’s 9.18%; 14% higher than the September 13, 2015 low of 271 in the current cycle. But the highest point from the December 6, 2011 cycle was 1000, down 69.2%.  In addition, domestic consumption of rare earth in approximately 35% to 40% of the rare earth permanent magnet materials to be used, not only for traditional home appliances, electric bicycle, luggage buckle and other fields, but also for the emerging field of wind power, new energy vehicles, household appliances, such as elevator inverter.In January 23, 2017, the Ministry of the joint development and Reform Commission, Ministry of science and technology and the Ministry of Finance jointly formulated the “new material industry development guide” pointed out that the future should speed up the new high efficiency semiconductor lighting, rare earth luminescent materials technology development, application of key technologies in rare earth permanent magnet motor in amorphous alloy breakthrough, vigorously develop the rare earth permanent magnet motor and supporting rare earth permanent magnet materials. This will boost the growth of rare earth metals demand is expected to strengthen market confidence.  Ye Jianjun said, rare earth illegal special action carried out, will effectively regulate industry order, strengthen rare earth output control. At the same time, the high frequency storage boost market confidence, coupled with the demand for rare earth permanent magnetic material of rare earth or the expected growth rate, market outlook will continue to maintain the upward trend is expected to continue to rise, rare earth index, fluctuations in the range of 300 to 350.Huatai Securities Research Report shows, the Guangxi Zhuang Autonomous Region Environmental Protection Bureau recently organized by the radiation safety inspection of the development and utilization of rare earth, and the Guangxi aluminum colored rare earth company and other 7 units were interviewed. Rare earth environmental protection supervision normalization helps to control illegal mining and smelting, in addition, hitting the normal storage stack and other factors, the supply of rare earth rare earth terminal continues to improve, market continues to heat up. At present, the upward trend of rare earth inflection point established, the price is expected to continue to rise.  China Merchants Securities latest research report also said that the small batch storage and anti impact on