CHINA RARE EARTH Quarterly Report (Abstract)
Highlight Market Overview: Market transaction data shows prices for major rare earth products set new highs in 1Q 2011. Separation plants raised prices in response to tight supply of raw materials, and rare earth metals prices rose rapidly, with the average growth rate reaching 67.5% during March. Separation and Smelting: China’s output of rare earth was approximately 130 kt during 2010. According to estimates, output of rare earth oxide was 75 kt in Baotou city, 15 kt in Sichuan city, and 40 kt in Jiangxi, Guangdong, Guangxi, and other ionic clay regions. China recycled 3.3 kt of rare earth. Macro Policy: China set quota for the production of tungsten, antimony, and rare earth ores in 2011. The output target for rare earth ore was 93,800 mt, including 80,400 mt of light rare earth ores and 13,400 mt of medium and heavy rare earth ores, up 5.2% compared with the quota for rare earth production set for 2010. Market Outlook: Current output of rare earth has been close to the production quota set by Chinese Highlights
government. Meanwhile, the overall industrial consolidation is also focused on illegal mining, helping reduce supply in the short term. In this context, increasing overseas and domestic demand will cause supply shortfall in the future, and speculative hoarding will also help support higher rare earth prices. SMM predicts rare earth prices will continue to increase for the foreseeable future.
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China Rare Earth Industry—Quarterly1，2011
Market Overview Chart 1：Market Prices of Main Rare Earth Products Category
Specification
Unit
Average Price
29/Mar/11 March
La2O3/TREO 99.099.9% CeO2/TREO 99.0Cerium oxide 99.5% Nd2O3/TREO 99.0Neodymium oxide 99.9% Pr6O11/TREO 99.0Praseodymium oxide 99.5% Dysprosium oxide 99.5-99.9% Lanthanum La/TREM≥99.0% Praseodymium Pr/TREM 96.0-99.0% Neodymium Nd/TREM 99.0-99.9% Cerium Ce/TREM≥99.0% Dysprosium ≥99% PraseodymiumPr≥20-25% neodymium alloy Battery-level/class TREM≥99.0% Nd/ mixed rare earth TREM≥15% metal Rare earth carbonate REO 42.0-45.0% Data source: SMM Lanthanum oxide
February
January
RMB/mt
56,500
47,022
29,333
29,000
RMB/mt
78,000
64,783
37,667
34,075
RMB/mt
520,000
461,521
326,500
262,500
RMB/mt
470,000
414,130
263,833
233,375
RMB/kg RMB/mt RMB/mt RMB/mt RMB/mt RMB/kg
2,850 80,000 590,000 650,000 111,000 3,500
2,658 70,586 518,370 579,130 89,609 3,287
1,953 52,433 352,667 402,667 56,100 2,425
1,477 52,000 296,250 337,500 52,000 1,870
RMB/mt
570,000
518,696
339,333
280,575
RMB/mt
190,000
151,195
90,467
82,150
RMB/mt
45,000
36,174
23,167
20,600
Note: SMM rare earth prices refer to mainstream average traded prices in major domestic markets which are settled on the basis of various price levels in markets, producers and traders.
1. Overview of Rare Earth Market Rare earth prices have risen continuously since the start of 2011, with prices for neodymium, cerium, rare earth carbonate, and medium-yttrium and rich-europium ore once again hitting record a record high. Higher prices resulted in sluggish market transactions, and although some producers began to sell goods limitedly, most sup-
pliers were reluctant to move goods in anticipation of higher prices. Inquiries were up in spot markets, and rising pressures from higher raw material costs have be felt by downstream rare earth producers, with cost pressures faced by downstream processors rising gradually.
3. Rare Earth Market Outlook 1). Short-term supply shortage will push up rare earth prices. Current output of rare earth has been close to the production quota set by Chinese government. Meanwhile, the overall industrial consolidation is also focused on illegal mining, helping reduce supply in the short term. In this context, increasing overseas and domestic demand will cause supply shortfall in the future, and speculative hoarding will also help support higher rare earth prices. SMM predicts rare earth prices will continue to increase for the foreseeable future.
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2) Hot Topics First, government efforts to regulate rare earth industry. Chinese government said recently it would take measures to regulate rare earth industry, and if the government can adhere to the regulation on rare earth industry for a long time, supply shortages will ease, and supply may even outstrip demand in advance.
China Rare Earth Industry—Quarterly1，2011
Second, the progress of inspections on environmental protection. If environmental protection measures for rare earth mining can be really taken, costs for environmental protection are bound to transfer to market prices, which will be favorable for market players to accept current high prices. Third, different policies between China and developed countries. If the western countries continue to put pressure on Chinese rare earth policies, Chinese rare earth export policy will experience some changes.
Fourth, emerging industries’ acceptance of high rare earth prices. Emerging industries play an important role in the growth of rare earth consumption, and rare earth consumption can not increase significantly unless rare earth prices can be accepted by emerging industries. In summary, SMM believes market players need time to accept high rare earth prices. The possibly slower growth of capacity caused by lower industrial investment in the future will add to possibilities of supply shortage in the short term, and SMM will pay close attention to any changes in rare earth industry.
Rare Earth Separation and Smelting in China 1. Mandatory Quota for Rare Earth Production and Forecast of Actual Output The Ministry of Land and Resources released a notice on March 30th, and set mandatory quota for the production of tungsten, antimony, and rare earth ores in 2011. According to the notice, the output target for rare earth ore was 93,800 mt, including 80,400 mt of light rare earth ores and 13,400 mt of medium and heavy rare earth ores, up 5.2% compared with the quota for rare earth production set for 2010. Higher quota for rare earth production is in line with market rules as global demand for rare earth products keeps rising. Chinese government set mandatory quota for three kinds of ores, a signal that China will continue to protect resources.
Based on the comparison of mandatory quota for rare metals production set in 2010 and 2011, resources available for mining increased most rapidly in Yunnan, Hunan, Sichuan, Jiangxi, and Fujian provinces. The volume of medium and heavy rare earth available for mining in Guangdong, Fujian, and Jiangxi provinces increased, while the volume of light rare earth available for mining in Hunan, Guangxi, and Sichuan provinces increased.
Chart 7: Prediction of China's Rare Earth Minerals, Smelting and Separating Product Plans, and Real Production 14 12 10 8 6 4 2 0 2008 Minerals
2009
Smelting and separating product
According to data from the United States Geological Survey (USGS), China’s output of rare earth was approximately 130 kt during 2010. According to estimates, output of rare earth oxide was 75 kt in Baotou city, 15 kt in Sichuan city, and 40 kt in Jiangxi, Guangdong, Guangxi, and other ionic clay regions. China recycled 3.3 kt of rare earth. Chinese government strengthened efforts to crack down illegal mining and has seen some effects. At pre-
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2010
2011E
Real production
sent, the existing rare earth smelting and separation capacity in China has exceeded market demand. Global total demand for rare earth is about 100 kt at present, and there are more than 100 rare earth smelting and separation enterprises in China, with rare earth separation capacity of approximately 200 kt, leaving slight overcapacity.
China Rare Earth Industry—Quarterly1，2011
2. SMM Survey of China’s Major Rare Earth Separation Enterprises SMM conducted a survey of China’s 10 large and medium rare earth separation enterprises. 10 enterprises produced 117,600 mt of rare earth oxide, 15,172 mt of rare earth metal, and 106,000 mt of rare earth salt. China’s major rare earth smelters include Inner Mongolia Baotou Steel Rare-earth (Group) Hi-tech Company, Baotou Damao Rare Earth Company, Gansu Rare Earth New Material Inc., Yixing Xinwei Leeshing Rare Earth Com-
pany, Ganxian Hongjin Rare Earth Company, etc. Inner Mongolia Baotou Steel Rare-earth (Group) Hi-tech Company is China’s largest rare earth separation enterprise, and produced 62,400 mt of rare earth oxide and 7,122 mt of rare earth metal. Ganzhou Chenguang Rare Earth New Material Company produced 4,000 mt of rare earth metal and rare earth alloy, as well as 3,000 mt of rare earth oxide.
Chart 8：Output at China Major Rare Earth Separating and Smelting Companies Output(mt) 2010
Company
Rare earth oxides Rare earth metals Rare earth salts Inner Mongolia Baotou Steel Rare-earth (Group) High-tech Co., Ltd.
62,400
7,122
70,000
Baotou Huacheng Rare-earth Factory
7,500
-
-
Baotou Damao Rare Earth Co., Ltd.
8,000
-
20,000
Hohhot Rongxin New Metal Smelting Co., Ltd.
5,000
3,000
-
Gansu Rare Earth New Material Limited-liability Company
15,000
-
16,000
New Materials in Zibo, Canada Resources Co., Ltd.
5,000
250
-
Yixing Xinwei Leeshing Rare Earth Co., Ltd.
8,500
800
-
Jiangsu Guosheng Rare-earth Co., Ltd.
2,000
-
-
Gan County Jinying Rare Earth Industry Co., Ltd.
1,200
-
-
Ganzhou Chenguang Rare Earths New Material Co., Ltd.
3,000
4,000
-
117,600
15,172
106,000
Total Data source:companies' annual report, SMM
Analysis of China Rare Earth Exports 1. China Reports Significant Increases in Export Value of Rare Earth in 1Q 2011 According to China Customs, the value of China’s exports of rare earth surged to USD 710.5 million during 1Q 2011, up nearly sevenfold over the same period of 2010. Based on the data, China’s exports of rare earth rose 27% on a yearly basis to 12,941 mt during the first three months of 2011, with marked declines in the growth. With China’s steadily rising pricing power in the international rare earth market, supply of rare earth will tighten further, as production and export quota of rare earth in China will continue to fall, which will favor prices of rare earth. China’s proven reserves of rare earth resources account for one third of world’s total, but China’s output and exports of rare earth occupy more than 95% in the international market, highlighting China’s significant influence on rare earth prices. As China is reducing the export quota of rare earth, foreign countries have been complaining about this. Based on China Customs, the value of China’s exports of rare earth was USD 401.3 million in March, and export volumes were 5,875 mt, twice as high as levels in Febru-
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ary. Despite the massive earthquake in Japan in March, prices of rare earth kept rising, a sign of inelastic demand in the international rare earth market. In March, the average prices of rare earth in China rose to USD 68,305, from USD 53,748 in February and USD 36,297 in January. According to China Customs, China’s exports of rare earth were 39,813 mt in 2010, down 9.3% from 2009 levels, but the value of exports of rare earth doubled. The declines in exports were below the range allowed by the export quota policy, showing that China’s rare earth exports didn’t fall as significantly as reported by foreign markets. China has lowered its export quotas of rare earth for 1H 2011 by around 35% on a yearly basis. The full-year permits for 2010 fell about 40% from 2009. The second round of permits for 2011 will be announced, and any changes in full-year permits for 2011 are not determined compared with 2011 levels, said Chen Deming, the Minister of Commerce.
China Rare Earth Industry—Quarterly1，2011
Chart 9：Export Quotas and Real Exports of Rare Earth (Unit: 10 kt) 7 6 5 4 3 2 1 0 2005
2006
2007
出口配额quotas Export
2008
2009
2010
实际出口量 Real exports
2. Analysis of China Major Rare Earth Products Exports 1) Rare Earth Smelting and Separation Products China’s exports of rare earth smelting and separation products, rare earth permanent magnets, and nickel-hydrogen battery in 2010 and the first three months of 2011 are listed below according to China Customs. Chart 10: Statistics on China Major Rare Earth Products Exports Mar/11 Feb/11 Jan/11 Product
Quantity/ mt
Value/ USD Quantity/ Value/ USD Quantity/ 10,000 mt 10,000 mt
Rare earth 169 metal Single rare 1,478 earth oxides Single rare 362 earth salts Rare earth 7 salts Rare earth py82 rophoric alloy Rare earth permanent mag1,396 net Nickelhydrogen bat7,511 ter （10,000 units） Data source:China Customs
Value/ USD Value/ USD Quantity/mt 10,000 10,000
2,485
110
1,165
75
724
6,262
17,843
18,682
369
5,487
159
1,718
20,106
56,861
2,881
142
892
62
322
10,357
14,139
79
114
539
42
215
3,081
4,941
52
24
27
53
21
572
406
7,580
803
4,274
1,429
7,188
13,895
62,539
6,272
3,964
3,190
7,492
5,637
94,581
71,527
In 2010, China’s exports of rare earth smelting and separation products reached 40,378.4 mt (physical mt), equaling to 35,245.4 mt of rare earth oxides, down 17.3% YoY compared with 2009 levels based on 42,609.7 mt of rare earth oxides converted from 50,722.4 mt (physical mt). The value of China’s exports of rare earth smelting and separation products amounted to USD 941.897 million in 2010, up 104.7% YoY from the export value of USD 460.08 million, despite declines in export volumes. The average export price of rare earth smelting and separation products was only up by 1.5 times in 2010. During 1Q 2011, rare earth prices surged. According to the data, the average export price of single rare earth oxides in 2010 rose significantly compared with
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2010
2009 levels. Of those, cerium oxide and lanthanum oxide experienced the largest gains, while terbium oxide and europium oxide represented the smallest increases. Since the beginning of 2011, the average export price of all kinds of rare earth oxides jumped. By product, the average export price of cerium oxide surged from USD 16,389/mt in 2010 to USD 121,795/mt, up 643%, that of yttrium oxide soared from USD 29,844/mt in 2010 to USD 116,555/mt, up 291%, that of dysprosium oxide skyrocketed from USD 260,976/mt in 2011 to USD 611,400/mt, up 134%, and that of other rare earth oxides also reported large gains. During 1Q 2011, China’s exports of rare earth oxides totaled 2,290.4 mt, with export value at USD 280.4 million.
China Rare Earth Industry—Quarterly1，2011
Chart 11：Export Prices of Some Single Rare Earth Oxides Average Price（USD/mt）
Product
Mar/11 121,795 116,555 97,438 145,793 789,488 611,400 771,771 120,169
Cerium oxide Yttrium oxide Lanthanum oxide Neodymium oxide Europium oxide Dysprosium oxide Terbium oxide Other rare earth oxides Data source:China Customs
Feb/11 81,993 77,896 89,950 116,329 652,578 490,306 642,088 141,518
Jan/11 63,028 84,572 75,400 86,254 641,977 454,566 625,041 104,654
2010 16,389 29,844 16,260 48,277 559,216 260,976 557,187 32,908
2009 4,529 11,514 5,115 22,485 483,849 121,715 614,493 16,326
Survey of Major Downstream Processing Enterprises hydrogen storage alloy powders and traditional fields. At present, rare earth consumption in new material fields accounts for about 49% of China’s total rare earth consumption, 16% in metallurgy, 12% in glass ceramics, and 23% in other fields. With the acceleration of China’s economic structure transformation, new-emerging industries, including new materials, energy-saving and environmental protection, and high-end equipment manufacturing, will develop at a faster pace, and that will boost demand for rare earth.
SMM surveyed 40 rare earth downstream processing enterprises, including 10 fluorescent materials enterprises, 10 rare earth magnets enterprises, 10 rare earth polishing materials enterprises and 10 rare earth hydrogen storage materials enterprises. The 40 enterprises in the survey, covering main rare earth consumers in China, will reveal overall production conditions at rare earth downstream processing enterprises in China. China’s rare earth consumption structure and new material consumption structure includes traditional fields and new-emerging fields, mainly involving rare earth permanent magnets, fluorescent powders, polishing powders,
Chart 17: China Rare Earth Consumption Structure China Rare Earth Consumption Structure 9%
China Rare Earth New Materials
2%
12%
8%
49%
28% 5%
12% 4% 4% 16% Mechanical metallugy
Glass, ceramic
Agriculture, light industry and textile
Catalyst
Miscellaneous
Permanent magnet materials
Hydrogen storage materials
Polishing materials
Fluorescent materials
Catalytic materials
Data source: integrated media, SMM
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China Rare Earth Industry—Quarterly1，2011
Survey of Major Rare Earth Magnets Enterprises SMM surveyed 10 major rare earth magnets enterprises, with total capacity of 47,500 mt/yr, accounting for 40% of China’s total rare earth magnets capacity. China’s output of neodymium-iron-boron magnet was around 120 kt in 2010, and sales income reached RMB 9.7 billion, with exports accounting for about 20% of total output. Producers are mainly in Jiangsu, Zhejiang, Shanxi, Beijing, Tianjin, Baotou and Jiangxi, manufacturing medium-grade products. Neodymium-iron-boron magnet is mainly applied to high-technology, traditional and low-end uses. In the field of high-technology application, consumption growth from MRI, VCM, DVD/CD storage, CD, E-bike, and EAV is the fastest, accounting for nearly 50% of China’s total Neodymium-iron-boron magnet consump-
tion, and it is a major driver for neodymium-iron-boron magnet consumption in recent years. In the field of traditional applications, consumption from loudspeaker, magnetic coolant separator, magnetic device, as well as dewaxing device used for oil fields and the petroleum industry is stable, accounting for 30% of China’s total consumption. In the field of low-end applications, it includes magnetic button for clothes, case and bags, and a door stop with magnetic insert. The proportion of low-end applications is dropping, but the absolute amount remains on an increase year by year.
Chart 19: Survey of Rare Earth Magnetic Material Producers Company
Capacity (mt)
Output 1Q, 2011
2010
Operating Rates % in 1Q 2011
Baotou Yunsheng Strong Magnet Material Co., Ltd.
3,500
600
3,500
69
Baotou Showa Rare Earth High-Tech New Material Co., Ltd.
1,000
250
950
100
Zhongke Sanhuan High-Tech Co., Ltd.
12,000
3,000
10,000
100
Beijing Sanjili Rare Earth Co., Ltd.
5,000
1,200
4,000
96
Yantai Zhenghai Magnetic Material Co., Ltd.
5,000
1,200
5,000
96
Constant Magnetic Materials Technology Group Co., Ltd.
6,000
1,500
6,000
100
Ganzhou Huajing Rare Earth New Material Co., Ltd.
3,000
600
2,500
80
Ganzhou Dongci Rare Earth Co., Ltd.
2,000
450
1,500
90
Ningbo Yunsheng High-Tech Magnetics Co., Ltd.
5,000
1,500
5,000
120
Shenzhen Shengli Magnetic Products Co.,Ltd.
5,000
1,200
5,000
96
Total
47,500
11,500
43,450
97
Data source: SMM Based on the survey, total output at the 10 producers in the survey was 11,500 mt during 1Q, with overall operating rates at around 99%. Prices of Neodymium-iron-boron magnet soared along with rising rare earth prices in 1Q, rising from RMB 110/kg to RMB 250/kg. Driven by robust
demand from wind power and e-bike, demand for neodymium-iron-boron keeps growing at an annual rate of around 20%, especially for medium and high-grade products, which is in supply shortages. Hence, neodymiumiron-boron producers generally run at full operating rates.
Survey of Major Polishing Powder Enterprises SMM conducted a survey of 10 major polishing powder producers in 1Q 2011, with 20,420 mt/yr capacity from the 10 producers accounting for 68% of China's total hydrogen storage materials capacity. China's total polishing powder capacities have amounted to around 30 kt at present, and major hydrogen storage material producers include Baotou Tianjiao Seimi Polishing Powder, Gansu Rare Earth New Material, Baotou Rhodia Rare Earth,
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Yixing Xinwei Leeshing Rare Earth, and Shanghai Huaming Gauna Rare Earth New Materials and etc. With growing demand for polishing powder from the world, investments for polishing powder have developed rapidly in Baotou, Sichuan and Jiangxi provinces. It is expected that China's polishing powder capacity will exceed 35 kt/yr in 2011.
China Rare Earth Industry—Quarterly1，2011 Chart 21: Survey of Rare Earth Polishing Powder Producers Company Baotou Tianjiao Seimi Polishing Poweder Co., Ltd. Baotou Wuhua Especial Products Co., Ltd. Baotou Rhodia Rare Earth Co., Ltd. Gansu Rare Earth New Material Co., Ltd. Yixing Xinwei Leeshing Rare Earth Co., Ltd. Shanghai Huaming Gauna Rare Earth New Materials Co., Ltd. Shanghai Tongyuan Rare Earth New Material Co., Ltd. Shenzhen Xinjiahang Abrasives Co., Ltd. Guangdong Yuantong Electronic Co., Ltd. Leshan Rongguang Grinding and Polishing Materials Co., Ltd. Total Data source: SMM Based on result of the survey, total output of polishing powder at these 10 producers in 1Q 2011 was 3,850 mt, and operating rates were around 75%. Polish powder is widely applied in precise instrument sector, but demand from this sector has been stable and possibility for any demand growth from this sector will be limited. China's polishing powder capacity has been in surplus at present due to over-investment. Quality of polishing powder produced from China is mixed. High quality polishing powder
Output 1Q, 2011/mt
2010/mt
Operating Rates % in 1Q 2011
2,220 2,000 3,000 3,000 2,000
550 450 360 750 120
2,200 1,800 2,500 3,000 500
99 90 48 100 24
3,000
600
1,500
80
1,500 2,500 1,000
300 500 180
1,000 2,000 700
80 80 72
200
40
200
80
20,420
3,850
15,400
75
Capacity/mt
produced from China still lags far behind level in overseas countries, so China still depends on imported polishing powder for higher precise instrument. Current high rare earth material price not only increased production cost at polishing powder producers, but also led to higher prices of polishing powder and dampened downstream consumption. It is reported producers revived less orders than before and some producers even cut production and adopt a wait-and-see attitude.
Downstream Markets Wind Power If China’s winder power develops at current speed, annual growth rate of winder power will be 18% from 2015 to 2020 and will fall to 8% in 2030. By 2015, total capacity of China's wind power will reach 129 million kW, and annual capacity will be 15 million kW, with annual electricity
generated from wind power of 317 TWh. By 2020, China's total wind power capacity will reach 253 million kW, and annual capacity will be 25 million kW. By 2030, total capacity will be 509 million kW, and capacity will be 22 million TWh.
Chart 23: China Wind Power Installed Capacity Growth during 2001-2010 5000.00
200.00
4000.00
150.00
3000.00
100.00
2000.00
50.00
1000.00
0.00
0.00
-50.00 2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
New installed capacity(10,000 KW)
Accumulative installed capacity(10,000 KW)
New installed capacity Growth
Accumulative installed capacity Growth
Data source:Wind Energy Association
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China Rare Earth Industry—Quarterly1，2011
In this scenario, China’s electricity generated from wind power can reach 622 TWh in 2020, and will reach 1,251 TWh in 2030. This means that electricity generated from wind power will account for 10% of China’s total electricity supply, and this proportion will arrive 16.7% in 2030. If every 1MW permanent magnet wind power generator needs around 0.6-1.5 mt of neodymium-iron-boron,
China’s consumption of neodymium-iron-boron will grow by 30% every year, which will provide spacious room for production and possession of neodymium-iron-boron permanent magnet materials. It is expected that wind power generation will be a new and large application field for neodymium-iron-boron.
Chart 24: Neodymium-Iron-Boron Permanent Magnetic Materials Demand Expectation in Wind Power Sector Neodymium-Iron-Boron Permanent Magnetic Materials Demand Expectation in Wind Power Sector Area
Name
2008
Accumulative installed capacity（MW） New installed capacity（MW） New direct-driven permanent magnet wind Globe power generator capacity（MW） Rare earth permanent magnetic material consumption(mt) Rare earth neodymium consumption (mt) Accumulative installed capacity（MW） New installed capacity（MW） New Direct-Driven Permanent Magnet Wind China Power Generator Capacity（MW） Rare earth permanent magnetic material consumption(mt) Rare earth neodymium consumption (mt) Data source:Wind Energy Association
2009
2010E
2011E
2012E
2013E
2014E
121,188 151,813 189,813 233,633 285,023 343,543 407,263 27,261 30,625 38,000 43,820 51,390 58,520 63,720 5,452
7,656
9,500 13,146 15,417 23,408 31,860
4,362
6,125
7,600 10,517 12,334 18,726 25,488
1,309 1,838 2,280 3,155 3,700 5,618 7,646 12,210 20,000 32,472 47,472 62,472 79,472 99,472 6,298 7,790 12,472 15,000 15,000 17,000 20,000 630
1,558
4,989
6,750
7,500
9,350 12,000
504
1,246
3,991
5,400
6,000
7,480
9,600
151
374
1,197
1,620
1,800
2,244
2,880
Energy-Efficient Lamp By adding europium, terbium, holmium, erbium, thulium and other rare earth elements, luminescent materials have unique optical properties and long lifespan, and are high energy efficient, environmental protective. Rare earth luminescent materials can be used in energyefficient lamp, displayer, photoelectric device, and modern electric medical equipment and other fields. Rare earth three-basic color fluorescence lamp -- energyefficient lamp -- accounts for 75% consumption of rare earth luminescent materials, and is the largest consumer of luminescent materials at present. As rare earth threebasic color fluorescence lamp saves energy by 70-80%
compared to electric incandescent lamp, and has high color rendering, high light efficient and long-life properties, it will have wide market prospect. In recent years, the EU, the US, Australia, Canada, China Taiwan, Japan, South Korea and other countries and regions plan to ban the use electric incandescent lamp and provide subsidy for energy-efficient lamp in order to reduce energy consumption. China’s National Development and Reform Commission (NDRC), the United Nations Development Program (UNDP) and the Global Environment Facility (GEF) singed an agreement on July 24, 2009 to promote the use of energy-efficient lamp and eliminate electric incandescent lamp in three years.
Chart 26: Prediction of China Fluorescent Lamp Output 8 7 6 5 4 3 2 1 0
30 20 10 0 -10 -20 -30 -40 -50 2006
2007
2008
2009
2010
2011
Fluorescent lamp demand (billion units -- left) Data source: media
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2012
2013
Growth (%--right)
China Rare Earth Industry—Quarterly1，2011
Appendix Attachment 1: SMM Rare Earth Prices Attachment 1: SMM Rare Earth Prices Product Rare earth carbonate Lanthanum oxide Cerium oxide Neodymium oxide Praseodymium oxide Terbium oxide Dysprosium oxide Europium oxide Yttrium oxide Samarium oxide Praseodymium neodymium oxide Lanthanum Praseodymium Neodymium Cerium Terbium Dysprosium Yttrium Praseodymium-neodymium alloy Praseodymium-neodymiumdysprosium alloy Mixed rare earth metal Mixed rare earth metal Battery-use mixed metals Lanthanum-rich rare earth metal Cerium-rich rare earth metal Dysprosium ferroalloy
Grade
Average price
Unit
2011/3/29
≥99.9% ≥99% Y/TREM 99.9-99.95% Pr≥20-25%
RMB/mt RMB/mt RMB/mt RMB/mt RMB/mt RMB/kg RMB/kg RMB/kg RMB/mt RMB/mt RMB/mt RMB/mt RMB/mt RMB/mt RMB/mt RMB/kg RMB/kg RMB/kg RMB/mt
45,000 56,500 78,000 520,000 470,000 4,800 2,850 3,950 144,000 33,000 450,000 80,000 590,000 650,000 111,000 5,600 3,500 320 570,000
36,174 47,022 64,783 461,521 414,130 4,248 2,658 3,843 114,043 30,457 400,000 70,586 518,370 579,130 89,609 5,135 3,287 314 518,696
≥99%
RMB/mt
520,000
472,826 304,500 263,625
TREM≥99.0% Nd/TREM≥10% TREM≥99.0% Nd/TREM≥15% TREM≥99.0% Nd/TREM≥15% La/TREM≥50.0% TREM≥98.5% Ce/TREM≥65.0% TREM≥98.5% ≥99.5%
RMB/mt RMB/mt RMB/mt RMB/mt RMB/mt RMB/kg
83,000 94,000 190,000 74,000 91,000 2,950
73,652 83,478 151,195 67,522 80,897 2,627
REO 42.0-45.0% La2O3/TREO 99.0-99.9% CeO2/TREO 99.0-99.5% Nd2O3/TREO 99.0-99.9% Pr6O11/TREO 99.0-99.5% 99.9-99.99% 99.5-99.9% 99.9-99.99% 99.99-99.999% ≥99.5% (Nd2O3+Pr6O11)/TREO≥75.0% La/TREM≥99.0% Pr/TREM 96.0-99.0% Nd/TREM 99.0-99.9% Ce/TREM≥99.0%
March February January 23,167 29,333 37,667 326,500 263,833 3,133 1,953 3,147 55,900 18,833 261,667 52,433 352,667 402,667 56,100 3,940 2,425 305 339,333
58,000 60,000 90,467 50,400 48,700 2,015
20,600 29,000 34,075 262,500 233,375 2,763 1,477 3,019 48,600 18,500 218,750 52,000 296,250 337,500 52,000 3,804 1,870 305 280,575
58,000 60,000 82,150 50,000 46,500 1,494
Note: SMM rare earth prices refer to mainstream average traded prices in major domestic markets which are settled on the basis of various price levels in markets, producers and traders.
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China Rare Earth Industry—Quarterly1，2011
Attachment 2: Initial Export Quota Arrangement in 2011 Attachment 2: Initial Export Quota Arrangement in 2011 Namelist of 2011 Rare Earth Exporters and Initial Export Quota Arrangement Serial number
Nature
Company name
Quota (mt)
1 2 3 4 5 6 7
Circulation Circulation Circulation Circulation Domestic Domestic Domestic
584 747 493 431 196 251 432
8
Domestic
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Foreign-funded Foreign-funded Foreign-funded Foreign-funded Foreign-funded Foreign-funded Foreign-funded Foreign-funded Foreign-funded
Sinosteel Corporation China Minmetals Non-ferrous Metals Co., Ltd. China Non-ferrous Metal Import and Export Corporation Jiangsu Branch Guangdong Rising Nonferrous Metals Import and Export Co., Ltd. Changshu Shengchang Rare Earth Smeltery Jiangsu Geoquin Nano Rare Earth Co., Ltd. Jiangsu Golden Century Advanced Materials Co., Ltd. Inner Mongolia Hefa Rare Earth Science and Technology Development Co., Ltd. Jiangxi South Rare Earth High-Tech Co., Ltd. Ganzhou Chengguang Rare Earth New Material Co., Ltd. Ganzhou Qiandong Rare Earth Group Co., Ltd. Grirem Advanced Materials Co., Ltd. Yiyang Hongyuan Rare Earth Co., Ltd. Baotou Huamei Rare Earth High-Tech Co., Ltd. Inner Mongolia Baotou Steel Rare Earth High-Tech Co., Ltd. Gansu Rare Earth New Material Inc. Leshan Shenghe Rare Earth Technology Co., Ltd. Funing Rare Earth Industry Co., Ltd. Shandong Pengyu Industrial Co., Ltd. Ganxian Hongjin Rare Earth Co., Ltd. Xuzhou Jinshi Pengyuan Rare Earth Material Factory Guangdong Zhujiang Rare Earth Co., Ltd. Jiangyin Jiahua New Material Co., Ltd. Liyang Luodiya Rare Earth New Materials Co., Ltd. Yixing Xinwei Leeshing Rare Earth Co., Ltd. Baotou Tianjiao Seimi Rare Earth Polishing Powder Co., Ltd. Baotou Rhodia Rare Earth Co., Ltd. Hohhot Rongxin New Material Smelting Co., Ltd. Baotou Huaxin Smelting Co., Ltd. Baotou Santoku Battery Material Co., Ltd. Zibo Jiahua New Materials Resource Co., Ltd.
750 401 374 329 333 594 954 740 689 750 327 709 102 410 166 481 324 440 251 867 296 93 127 805
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