Crazy Rare Earth Hits Downstream Enterprises

At present, China's rare earth downstream companies are experiencing the most severe challenges in history. Industry experts and business representatives are eagerly awaiting that the state's regulatory policies concerning the rare earth industry have shifted from upstream resources to downstream products, focusing on the development and application of downstream products, and exerting greater efforts on the application of high-end technologies.


“Now, we're almost overwhelmed with rare earth raw material stocks have been used up. Although the rare earth price has dropped, but it is still 'high price', our company will soon stop production. In the previous month or two, many of our companies here Already in the state of production stoppage and semi-discontinuation.” On September 7, the head of a large-scale new energy rare earth permanent magnetic material production company in Ningbo complained to reporters.


The reporter learned from the interview that the rare earth downstream enterprises like Ningbo, which is in a dilemma, are not alone. At present, many rare earth downstream applications in Zhejiang, Jiangsu, Fujian, Shandong, Inner Mongolia, and Jiangxi have ceased production. The reason is simple. The price of raw materials for rare earths in the upper reaches is too high, and companies cannot afford high cost pressures and are forced to close their doors.


Zhang Anwen, deputy secretary-general of the Chinese Society of Rare Earths, told reporters that in the first half of this year, raw material prices in the upper reaches of the rare earth industry chain rose sharply at an unprecedented rate. Compared with the beginning of the year, the prices of rare earth concentrates, rare earth oxides, and metals have risen roughly 6 to 10 times, and “crazy” high-priced rare earths have hit the rare earth downstream companies. Although from mid-July to early September, the price of rare earth fell by nearly 20% across the board, but compared with the beginning of the year, the increase rate was still 5 to 8 times. For the downstream companies in the industrial chain suffering from high rare earth prices this year, the current rare earth The price is still "high price."


Zhang Anwen said that “high price” rare earth has caused many rare earth downstream application companies to be forced to seek alternatives for rare earths. China's rare earth high-end application devices have a certain gap with developed countries. High-priced rare earth has caused rare earth companies to develop four major application devices represented by rare earth permanent magnets, nickel-metal hydride batteries, rare earth phosphors, and rare earth polishing powders. It is shrinking. The market of rare earth nickel-metal hydride batteries with environmental advantages is also shrinking; rare-earth trichromatic powder enterprises are struggling with the high price of rare earth raw materials, which is not a small blow to the energy saving of the lighting industry; the use of low-priced rare earth polishing powder companies also It means that you cannot afford to use rare earth.


However, in sharp contrast, in the upstream of the rare earth industry chain, the largest rare earth raw material supplier in China, Inner Mongolia Baotou Rare Earth (Group) Co., Ltd. High-tech Co., Ltd. reported in the first half of this year, benefited from the sharp rise in the price of rare earth products, the company In six months, total operating income reached 5.969 billion yuan, an increase of 156.81% over the same period last year.


According to report, in the complete rare earth industrial chain such as rare earth ores, rare earth concentrates, rare earth separation products, rare earth functional materials, and practical products, under the influence of the “high price” rare earth market, it has now been clearly divided into Two: One side is the upstream rare earth ore - rare earth concentrate - rare earth separation products companies make special gains, happily; one side is the downstream rare earth functional materials - devices - utility products companies lose production at a loss, miserable. Upstream and downstream of the rare earth industrial chain presents two heavy fires.


"Astronomical" rare earth not only brought negative impact on downstream companies, but also hindered the company's technological innovation and industrial upgrading. The rare earth hydrogen storage materials and new energy nickel-metal hydride battery enterprises are at the high end of the rare earth industrial chain, and are also the “hard-hit areas” after this rare earth price skyrocket.


He is investing heavily in creating three rare earth industrial chains including rare earth hydrogen storage materials, luminescent materials, and magnetic materials. Huang Changgeng, deputy general manager of Xiamen Tungsten Industry Co., Ltd., told reporters: “High rare earth raw materials have caused significant losses for rare earth hydrogen storage materials companies. This has caused a fatal blow to new energy nickel-metal hydride battery companies and has threatened the survival of the industry. What's more serious is that high-priced rare earths will further inhibit the technological innovation of nickel-metal hydride battery new energy companies."


Talking about the reasons for promoting rare earth “astronomical prices”, Deputy Secretary-General Zhang Anwen analyzed that on the one hand, the national and local governments have achieved effective results in various control and rectification policies including the source control of the rare earths upstream, including rare earth mines, mandatory production indicators, and resource taxes. On the other hand, rare earth backbone enterprises have strengthened the management and reorganization of resources, production, and prices. Another reason is that the hot money speculation is to sell goods.


On how to crack down on the "difficult" rare earth caused by the downstream business dilemma, the chief expert of China Rare Earth Information Center Dou Xuehong accepted an interview with reporters. He said that the "high end" of the rare earth industrial chain is downstream, and if the crisis continues to occur downstream, it will also be conducted upstream in the near future. In recent years, the state's regulatory policies concerning rare earth industries are mostly upstream, while downstream high-end areas are actually more important. China and the United States, Japan and other countries have inherent gaps in the application of rare earth technology, so we should pay more attention to the promotion and application of downstream products. The rare earth application market is a guarantee for the vitality of the rare earth industry. We can't just focus on the upstream resources, but should work hard on downstream high-end technologies.


Rare earth companies and industry experts also suggested that: China's rare earth companies want to make a difference in the international market, I hope the country and industry companies will pay attention to downstream high-end products. The state should promptly introduce a series of preferential policies and support policies for the downstream high-end rare earth product manufacturers, so that downstream enterprises can get out of trouble. Only by standing at the high end of the industrial chain can we truly grasp the right of the world's rare earth market.

Water Tank Truck

Water Tank Truck(water tanker) is suitable for various water transport,milk carry, water drainage,emergency fire fighting, pavement washing, trees, green belt, green lawn, roads, construction of factories and mines, high-altitude construction flushing. It can be used for spraying water, suppressing dust, high and low spraying, pesticide spraying, rail and construction washing and other functions.

water tank materials made of Carbon steel ,Stainless steel, Aluminum alloy. front brash street, rear working platform, water Monitor. Fire quick connect, Ball Valve and so on.

Water Tank Truck,Water Sprinkler Truck,Water Sprinkler Vehicles,Stainless Steel Water Truck, Water Tanker

Suizhou lishen special vehicle co.,ltd , https://www.ls-truck.com