Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. China
  4. Shenzhen Stock Exchange
  5. China Minmetals Rare Earth Co., Ltd.
  6. News
  7. Summary
    000831   CNE000000WS2

CHINA MINMETALS RARE EARTH CO., LTD.

(000831)
  Report
SummaryChartsNewsCalendarCompanyFinancials 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

China rare earth prices soar on their potential role in trade war

06/06/2019 | 07:38am EDT
Workers transport soil containing rare earth elements for export at a port in Lianyungang

BEIJING (Reuters) - Chinese rare earth prices are set to climb further beyond multi-year highs hit following a flurry of state media reports that Beijing could weaponize its supply-dominance of the prized minerals in its trade war with Washington.

Rare earths, a group of 17 elements that appear in low concentrations in the ground, are used in a wide-range of products stretching from lasers and military equipment to magnets found in consumer electronics.

China supplied 80% of the rare earths imported by the United States from 2014 to 2017, with Chinese state newspapers last month reporting Beijing could use that as leverage in the ongoing trade dispute between the two.

"(Magnet-related rare earths) are the ideal materials to weaponize ... because they are so critical to high-demand, highly-competitive, price-sensitive industries," said Ryan Castilloux, managing director of Adamas Intelligence, a consultancy that tracks rare earths markets.

"(Such rare earths) are collectively responsible for over 90% of the demand market's value each year ... (so they) will yield the most juice for the squeeze," Castilloux said by email from Toronto, adding that prices were set to keep rising.

Prices of dysprosium metal, used in magnets, high-powered lamps and nuclear control rods, are currently assessed by Asian Metal at their highest since June 2015 at 2,025 yuan ($292.98) per kg.

That is up nearly 14 percent from May 20, the day Chinese President Xi Jinping visited a rare earth plant, sparking speculation the materials could be the next front in the Sino-U.S. trade war.

(GRAPH
IC: Rare earth export prices perk up after China rattles trade war saber -

The price of neodymium metal, critical to the production of some magnets used in motors and turbines, has risen to its highest since last July at $63.25 a kg, up about 30% since May 20, according to Asian Metal.

The price of gadolinium oxide, used in medical imaging devices and fuel cells, is up 12.6 percent from May 20 at 192,500 yuan a tonne, the highest in five years.

Asian Metal is a research and price reporting agency that covers rare earth elements.

Chinese rare earth prices started to move "right after China announced the import ban" on rare earths from Myanmar, said Helen Lau, an analyst at Argonaut Securities in Hong Kong.

The state-run Securities Times reported on May 13 that customs in the southwestern province of Yunnan would ban imports of rare earths from neighboring Myanmar, a key supplier of middle-heavy rare earth feedstock, from May 15.

"But then a couple of days later, you can see a big movement in the prices - so that was mainly because of this possible weaponizing of rare earths," Lau said.

"If China indeed weaponizes rare earths, the U.S. will not have enough supply because it needs some lead time to build their own processing capacity, which currently is zero," she added.

Another analyst, who asked not to be identified due to the sensitivity of the matter, said that six major rare earth producers in China held the most stocks in the spot market, giving them power over prices.

The six major producers are China Minmetals Rare Earth Co, Chinalco Rare Earth & Metals Co, Guangdong Rising Nonferrous, China Northern Rare Earth Group, China Southern Rare Earth Group and Xiamen Tungsten.

(Reporting by Tom Daly and Shivani Singh; Editing by Joseph Radford)

By Tom Daly and Shivani Singh


© Reuters 2019
Stocks mentioned in the article
ChangeLast1st jan.
CHINA MINMETALS RARE EARTH CO., LTD. -4.02% 31.97 End-of-day quote.134.56%
CHINA NORTHERN RARE EARTH (GROUP) HIGH-TECH CO.,LTD -2.93% 39.4 End-of-day quote.200.99%
THE LEAD CO., INC. -0.15% 662 End-of-day quote.-21.19%
US DOLLAR / CHINESE YUAN RENMINBI (USD/CNY) 0.00% 6.4808 Delayed Quote.-0.84%
XIAMEN TUNGSTEN CO., LTD. -0.22% 31.13 End-of-day quote.84.75%
All news about CHINA MINMETALS RARE EARTH CO., LTD.
07/12China Minmetals Rare Earth Co., Ltd. Announces Final Distribution on A Shares..
CI
05/26China Minmetals Rare Earth Co., Ltd. Approves Profit Distribution Proposal fo..
CI
04/28China Minmetals Rare Earth Co., Ltd. Announces Profit Distribution Proposal f..
CI
04/27China Minmetals Rare Earth Co., Ltd. Reports Earnings Results for the First Q..
CI
04/12China Minmetals Rare Earth Co., Ltd. Reports Earnings Results for the Full Ye..
CI
03/09MARKET CHATTER : China's 2021 GDP Growth Target Allows for Policy Changes, UBS E..
MT
2020China Minmetals Rare Earth Co., Ltd. Announces 2020 Interim Distribution, Pay..
CI
2020China Minmetals Rare Earth Co., Ltd. Reports Earnings Results for the Nine Mo..
CI
2020CHINA MINMETALS RARE EARTH : - Guo Wenqing Meets with Zhao Xiaochen President of..
AQ
2020China Minmetals Rare Earth Co., Ltd. Approves Interim Cash Dividend for the Y..
CI
More news
Financials
Sales 2020 1 656 M 256 M 256 M
Net income 2020 279 M 43,0 M 43,0 M
Net Debt 2020 117 M 18,1 M 18,1 M
P/E ratio 2020 47,9x
Yield 2020 0,66%
Capitalization 31 359 M 4 838 M 4 839 M
EV / Sales 2019 7,77x
EV / Sales 2020 8,14x
Nbr of Employees 365
Free-Float 58,4%
Chart CHINA MINMETALS RARE EARTH CO., LTD.
Duration : Period :
China Minmetals Rare Earth Co., Ltd. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends CHINA MINMETALS RARE EARTH CO., LTD.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Managers and Directors
Tao Wang General Manager & Director
Shu Yong Qi Chief Financial Officer
Jing Kun Niu Chairman-Supervisory Board
Lei Yun Liu Chairman
Xing Guo Li Independent Director
Sector and Competitors