Time:12/13/2018 1:56:48 PMauthor:source:
China's rare earth resources are very rich, and China currently exports the highest number of rare earths in the world.
In fact, rare earth resources are not just in China. The United States produces more than 10 million tons of rare earths, accounting for about 13% of the world's total, but exports are zero. For the country's rare earth resources, the United States has gradually stopped mining since 1999, importing a large amount from China every year, trying to increase the storage.
In view of this, since the large-scale rectification of rare earth mines in China in 2010, the price of rare earths has shown a rapid rise. Many brands have increased by more than 300%, and the price increase of some varieties has been even more impressive, reaching 600%-1000%. The price of iron and boron rose sharply from 95,000 yuan/ton to 500,000 yuan/ton.
Since strong magnets are widely used in many industries such as motor motors and audio speakers for industrial production, many enterprises in Dongguan have procurement needs. According to the conservative estimate of Li Shoukun, the annual consumption of magnets in the Pearl River Delta is about 15 billion yuan.
Nearly 500% of the price surge has left business owners at a loss. “Even if the deposit is paid, because the price is too high, many factories even give up purchasing and turn off the production line.” Li Shoukun said that in the first half of last year, there were not many such cases in Dongguan.
High-priced purchase of raw materials, their own end products can not increase prices, the more production, the more losses. It is natural for business owners to give up their purchases.
However, after July last year, the price of strong magnet materials in the Dongguan market began to fall, from a high of more than 1.7 million tons per ton to more than 400,000 at the end of the year. However, since entering this year, it has begun to enter the "slow channel". In the last 20 days, it has increased by about 100,000 yuan per ton. At present, the price of strong magnets in the Dongguan market is around 550,000 yuan per ton.
“The orders of the current business owners have begun to stabilize.” However, after a price “roller coaster”, business owners became more sensitive to prices. Obviously, the victims of the surge in the price of rare earths are not mining companies, but many business owners. This is evident from the 2011 annual report of the listed company Baotou Rare Earth: last year, the marketing revenue was 11.5 billion, but the operating profit was as high as 7.3 billion, and the profit rate was close to 70%, which is 1 yuan per income, and nearly 7 cents. It is profit and becomes the most profitable listed company.
According to reports, with a pair of earphones with a retail price of 10 yuan, the cost price is about 5 yuan, and the cost of the magnet used in the speaker is about 0.5 yuan. The 5% cost price has become a median of magnets in many products.
Due to the scarcity of resources, in the medium and long term trend, the price of rare earths is still on the rise. “In the market outlook, there is little chance of a sharp rise and fall.” Investment needs to be cautious!
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