Recently, China's rare earth prices may continue to rise

A few days back, a reporter discovered on Baotou Steel Rare Earth's official website that Baotou Steel Rare Earth International Trade Co., Ltd. had once again put out a public tender for the acquisition of rare earth oxides. This move was primarily aimed at stabilizing the market price. Recently, a management representative of Baotou Steel Rare Earth stated that such public tenders were conducted to ensure stable pricing. They also mentioned that just a month ago, Baotou Steel Rare Earth had sought to stabilize rare earth prices by limiting the output of roasting, smelting, and separation enterprises connected to their mines, aiming to reinvigorate the sluggish rare earth market. "Due to the suspension of production by several major Chinese rare earth manufacturers, rare earth prices have begun to rise recently," noted an anonymous broker. "It’s likely that the listed price won’t deviate much from the recent price rebounds." Ye Xin, a non-ferrous metals analyst at Anxin Securities, pointed out that the rare earth price quoted by Baotou Steel is essentially the company’s purchase price. However, actual spot transaction prices in the market are typically lower. "This will still influence the market," Ye added. Baotou Steel Rare Earth is also a significant buyer in the market, and the high prices set by such buyers inevitably exert upward pressure on the market. "However, the current demand in the rare earth consumer market remains weak, which is tied to the global and domestic economic conditions," Ye explained. "It’s anticipated that rare earth prices will remain relatively flat or see slight increases in the near term, with potential shifts expected in the second quarter of next year." An unnamed executive of an industry-related company, speaking to the reporter, remarked that Baotou Steel Rare Earth's rare earth price listing can be seen as a strategic sales tool. "On one hand, they halt production and stabilize prices, while on the other, they list rare earth oxide products for acquisition. The goal is to apply some pressure on the rare earth consumer market." "The recent production shutdowns and product acquisition measures implemented by Baotou Steel Rare Earth align with the principles of market economics," noted Zhang Anwen, Deputy Secretary-General of the China Rare Earth Society. "It is expected that rare earth prices will continue to stabilize and may reverse course in the second quarter of 2013." These strategic moves reflect a concerted effort to balance supply and demand dynamics within the rare earth market, with long-term implications for both domestic and international industries reliant on these critical materials.

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