On the 13th, Baotou Steel Rare Earth announced a premium purchase of high-quality rare earth products, and just eight days later, on the 21st, they further increased the purchase prices of rare earth by 10% to 13%. Additionally, they decided to extend their production suspension for another month. In this latest round of purchasing, Baotou Steel offered 450,000 yuan per ton for bismuth oxide, which represents nearly a 20% premium over the current market price. This move follows similar actions taken by China National Color Co., Ltd., which also recently announced a premium purchase of rare earth materials.
Baotou Steel Rare Earth reissued its rare earth oxide procurement information on its official website, covering both light and heavy rare earths. The new prices listed are generally 10% to 13% higher than those announced on the 13th. Specifically, the price for bismuth oxide was set at 450,000 yuan per ton, while other materials such as yttrium oxide were priced at 3.85 million yuan per ton and another type of bismuth oxide at 70,000 yuan per ton. These prices are typically over 15% higher than what's currently available on the open market. Meanwhile, China National Color Co., another significant player in the industry, also released its procurement details recently. Although their prices are slightly lower than Baotou Steel's, they still represent a premium compared to the spot market prices. For instance, their bismuth oxide is priced at 400,000 yuan per ton and yttrium oxide at 3.8 million yuan per ton.
Baotou Steel Rare Earth also announced last night that their initial one-month shutdown plan, which was set to begin on October 23, will now be extended for an additional month. Market analysts had previously expressed concerns that if rare earth prices rebounded, the company might restart production, potentially suppressing prices again. However, the prolonged shutdown by Baotou Steel is seen as having a significant influence on the market. This indicates that the company will likely contribute very little to the supply in the fourth quarter. As a production-oriented enterprise, these actions by Baotou Steel Rare Earth and China National Color Co., Ltd. can be viewed as strategic moves aimed at stabilizing or boosting prices.
Some rare earth traders speculate that Minmetals might follow suit and raise its purchase prices soon. However, some market participants have been vocal about the challenges posed by the lengthy payment terms—up to six months—offered by these companies, making it difficult for traders with limited financial resources to participate in these transactions. Despite these obstacles, the actions taken by Baotou Steel and China National Color Co., Ltd. clearly demonstrate their commitment to maintaining strong control over the rare earth market.
Single Tube Tri-Proof Light,Single Tube Classic Light Fixtures,Single Tube Light Fixture,Tri-Proof Lights
Land of Lights Electric Appliance Co., LTD , https://www.loloutdoorlight.com