Asian Metal visits Sanhuan Jingyue, Deqing Xingbang, Qingyuan Mining, Qingyuan Jiahe, Qingyuan Damei, Dahua Magnetic and other enterprises around in Guangzhou

Eric Qiu, the analyst on rare earth market from Asian Metal, visited some companies besides Guangzhou City from April 12 to 15 including Zhaoqing Sanhuan Jingyue Magnetic Products Co. Ltd (“Sanhuan Jingyue”), Deqing Xingbang Rare Earth New Materials Co., Ltd. (“Deqing Xingbang”), Qingyuan Mining Exploitation Co., Ltd. (“Qingyuan Mining”), Qingyuan Jiahe Rare Metals Co., Ltd. (“Qingyuan Jiahe”), Qingyuan Damei Rare Earth New Materials Co., Ltd. (“Qingyuan Damei”), Guangzhou Andi Rare Earth New Materials Co., Ltd. (“Guangzhou Andi”), Guangdong Dahua Magnetic Limited (“Dahua Magnetic”) and Shenzhen Hongbo Rare Earth New Materials Co., Ltd. (“Hongbo Rare Earth”) successively, and spoke glowingly of the state of development and market outlook of rare earth industry with person in charge of these companies.

On the morning in April 12, Eric Qiu visited Zhaoqing Sanhuan Jingyue Magnetic Products Co. Ltd and had an informal discussion with Deng Rubin, deputy general manager of marketing, Huang Guanghui, purchasing manager, and Huang Guokang, sales manager. According to Mr. Deng, the overall supply for rare earth products exceeds demand now. After going through insanely increasing prices in 2010 and 2011, most rare earth magnets manufacturers underwent tough time during 2012-2014, when prices kept falling down continuously and had a deficit due to long-term purchases; Besides, magnets manufacturers tried to restrict using of NdFeB products to the greatest extent for new products after 2014. He noted that their company has a designed capacity of 3,000tpy, but the output of sintered NdFeB Magnets was about 1,000t in 2016 limited by the back working procedure. Mr. Huang from Purchasing Department introduced their regular suppliers, cracking down on illegal activities in rare earth ore production and national reserves to Eric Qiu. At last, Mr. Huang from Sales Department, Eric Qiu visited workshops of smelting, powder processing, profiling, sintering and magnetic performance test.

On the afternoon on April 12, Eric Qiu left for Deqing Xingbang Rare Earth New Materials Co., Ltd. and received warm reception from Li Huachang, president and general manager, Zhou Xiaosui, deputy manager of Sales Department, and Zhen Anxin, sales group leader. Mr. Li noted that rare earth separation industry in South China faced many problems at present, such as over capacity, easy-to-copy technology, high law-abiding cost and survival difficulty. From the perspective of financial analysis, he stated the influence on business operation from production cost, labor cost, environmental protection cost and tax cost. He pointed out that rare earth enterprises need adapt to “New Normal” and strove to save costs and expand sales under the sluggish market condition. In addition, Eric Qiu introduced the market outlook and price trend of rare earth products including praseodymium neodymium, dysprosium, terbium and lutetium to Deqing Xingbang. Afterwards, accompanied by manager Zhen, Eric Qiu visited the workshops and environmentally protective facility of the company.

On April 13, Eric Qiu from Asian Metal headed for Qingyuan and had a talk with Liu Maoqiu, vice general engineer of Qingyuan Mining Exploitation Co., Ltd., Xutao, marketing director, and Chen Dirong, vice general engineer of Qingyuan Damei Rare Earth New Materials Co., Ltd. According to Ms. Xu, prices for praseodymium neodymium oxide keep rising after Northern Rare Earth released its quotation on 6th April. But most metal plants are cautious about purchasing and spot transactions are inactive. Manager Chen disclosed that Qingyuan Damei has sold about 300t of praseodymium neodymium oxide in 2016, but less than 30t so far in 2017. In addition, supply in the spot market remains tight now though consumers are inactive in purchasing, and Chen expects to see a favorable market outlook towards terbium oxide this year.

Then, together with Xu and Chen, Eric Qiu paid a visit to Yang Qingyu, president and general manager of Qingyuan Jiahe Rare Metals Co., Ltd., and Zhangjie, manager of Business Department of the company. Mr. Yang noted that separation plants have difficulty in making profits as supply for rare earth ore remains tight with prices standing at high levels. They still arrange production according to rare earth mandatory production plan now. The two sides discussed about main products’ markets, such as praseodymium neodymium, dysprosium and terbium. Eric Qiu pointed out that demand for terbium metal is expected to increase by 20% YOY this year and some metal plants also raise their capacities; While, the demand for lutetium oxide may decrease in July as Japanese patent will be out of date. Finally, in company with Mr. Zhang, Eric Qiu visited the workshops of Qingyuan Jiahe.

On the morning on April 14, Eric Qiu from Asian Metal returned to Guangzhou and went to Guangzhou Andi Rare Earth New Materials Co., Ltd. Eric Qiu talked over with He Cheng, sales manager, who high appreciates Asian Metal on market prices and depth research. The two sides carried out discussions on the market outlook towards lanthanum carbonate.

On the afternoon on April 14, Eric Qiu from Asian Metal and Zhong Jiongxiong, the general manager of Zhongdongyuan Technology, visited Guangdong Dahua Magnetic Limited in Wangniudun Town, Dongguan City and met Xufeng, general manager, Li Yanhao, vice general manager, and Qiu Qinhai, general manager assistant. Accompanied by assistant Qiu, Eric Qiu and Zhong Jiongxiong visited the slice workshop, test workshop and finished products inventory, and had a discussion with Mr. Xu after knowing the production process roughly. According to Mr. Xu, their output of finished NdFeB product was about 100tpm in March, and they planned to raise the monthly output to 140-150tpm in H2 of 2017. He claimed that 2017 is the challengeable year for the magnets industry, and he expects to see less speculation on the raw material market and smooth variations of rare earth metal prices as a rare earth downstream enterprise. He indicated that most rare earth magnets manufacturers might face with high production cost and even losses affected by the sales mode of “Production after obtaining orders” in the NdFeB magnet industry if prices for rare earth metals products keep moving up.

On the morning on April 15, Eric Qiu was invited to met with Chen Meihua, sales manager of Shenzhen Hongbo Rare Earth New Materials Co., Ltd. The two sides communicated with market supply and demand situation and price trend of mainstream rare earth products roughly and expressed that they will keep effective communication with each other and make every effort to promote long-term cooperation.

A weeklong trip in Guangdong ends. Asian Metal will carry out investigations and surveys adhering to the steadfast rigorous attitude and provide customers with market prices and industry information timely and accurately, which conforms to customers’ demand. This trip has ended, but Asian Metal is still on the way to conducting investigations and making reports.