tisdag 17 juli 2012

Dacha

RareMetalBlog fortsätter komma med intressanta artiklar som tyder på att den mycket svåranalyserade marknaden (utbud och efterfrågan) för tunga REE där Kina har monopol, att något kan vara på väg att hända där. Vår tajming med Dacha ser allt bättre ut kort sagt.
Tuesday, July 17, 2012

China Cuts RE Mining Rights by 50%.

Rare earth element developments in China are coming out this and fast this month. The latest development is that China has cut the rare earth mining rights of companies by about half to 65, according to Chen Zhanheng, a deputy secretary- general at the Association of China Rare Earth Industry. He also seemed to imply an new government effort against illegal mining and smuggling is in the works.

With the global economy slowing and China building a strategic rare earth elements reserve, this mining cut to speed up consolidation, probably won’t have much impact on prices, or outside of Japan, believed to be the main beneficiary of smuggled Chinese REEs. But once the world exits austerity and the great stagnation, and starts a sustainable recovery again, this 2012 development suggests to me a sudden inflationary surge in REE prices will occur as improved demand chases reduced Chinese supply. While that may still be couple of years away, stockpiling REEs now might make sense for a lot more than just China. Of course non-Chinese new supply will mitigate the price rise, but it probably will do no more than mitigate it. With interest rates at historic lows, REE accumulation looks attractive.

China Cuts Rare Earth Mining Rights by Half to Aid Consolidation
By Bloomberg News - Jul 16, 2012 8:17 AM GMT

China, the supplier of 90 percent of the world’s rare earths, cut mining rights for the materials by about half to 65 nationwide to help the industry consolidate and create bigger producers.

Rare-earth mining rights in Ganzhou of Jiangxi province were reduced to 44 from 88, Chen Zhanheng, a deputy secretary- general at the Association of China Rare Earth Industry, said today in an interview. The western province of Sichuan had its rights lowered to seven from 18, while the Inner Mongolia-based Baotou Iron & Steel Group Co. absorbed its local rivals, the Ministry of Land and Resources said on its website, without giving details.

---- “Reducing mining rights helps streamline rare-earth development,” Chen said, “Still, illegal mining is a bigger issue that the government needs to tackle,” he said, without elaborating.

China recently arrested 19 suspects for alleged illegal mining in Xinfeng in Guangdong province and punished 11 officials for lack of supervision, the ministry said today. Some of the output from illegal mines was smuggled to neighboring countries for processing after China tightened its regulation of domestic smelters, Chen said.

Red 18.40:
Tagit hem fina vinster idag i Allana, 10% på kort tid är inte att förakta. Handlat mer aktier idag i Mart på 1.44 och 1.45 inför utdelningsavstämning 23e. Mina prenumeranter liksom JF´s prenumeranter har ju nyligen haft möjlighet att läsa vad en kanadensisk mäklare skrev om dom när dom initierade bevakning. Mart är en av Finoas och JF´s verkliga fullträffar senaste tiden.

Mer om REE: Vi får fler och fler pusselbitar om att det är överproduktion i Kina och smuggling som gör att japaner, amerikaner och européer "inte har så stort behov av att handla REE" på marknaden. Man är kort sagt fullt upptagen med att köpa miljöförstörande smuggelgods....

En uppgift säger att upp mot 50% av allt förbrukat tunga REE är smuggelgods. Det betyder rimligen att många storföretag är djupt involverade om än via mellanhänder.

Rare earth smuggling rampant in China



A site of illegal mining of rare earth in Guangdong. (File photo/Xinhua)
A site of illegal mining of rare earth in Guangdong. (File photo/Xinhua)
Smuggling of rare earth minerals in China reached 22,320 tons in 2011, far exceeding the quota of exports through normal channels in the country, the Shanghai-based First Financial Daily reports.
Foreign customs statistics from 2006 to 2008 showed that rare earth imports from China were considerably higher than its exports, according to a white paper released by the State Council, China's cabinet, on June 20. The foreign figure was 120% higher than government statistics in 2012, said the white paper, the first on the rare earth industry.
The problem continues to get worse despite the state's intensified crackdown on the smuggling of rare earth elements, which are essential in the manufacture of hi-tech products.
In 2011, China produced 96,900 tons of rare earth smelting products, accounting for more than 90% of the world's total production. According to customs data, the quota of exports of rare earth oxides in 2011 was 24,000 tons, equivalent to about 30,000 tons of processed products. However, actual exports last year totaled just 18,600 tons, leaving 40% of the export quota unused. Foreign customs statistics put China's total rare earth imports at 40,920 tons, meaning its exports of smuggled rare earths exceeded 20,000 tons.
Rampant smuggling is contributing to the reduction in rare earth imports through normal channels. It has also led to sluggish demand for the legal products and falling prices in the market, said Du Shuaibing, an industrial analyst with Beijing-based raw-material information portal Baiinfo.
The government had been combating rare earth smuggling in recent years and has solved eight smuggling cases leading to the arrest of 23 people and seizure of 769 tons of rare earth elements, said Su Bo, the vice minister of the Ministry of Industry and Information Technology.

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