Three days after announcing the supply of praseodymium neodymium oxide products to apple, on January 14, Jiangsu Huahong Technology Co.Ltd(002645) announced that it had signed a long-term supply agreement with China Minmetals Rare Earth Co.Ltd(000831) group and Ningbo Funeng, which locked the supply of rare earth oxides of Xintai technology, a subsidiary of the company, in the next 12 months.
re sign order
According to the announcement, China Minmetals Rare Earth Co.Ltd(000831) group and Ningbo Funeng lock the supply of rare earth oxides of Xintai technology from January 1, 2022 to December 31, 2022. The monthly order quantity of China Minmetals Rare Earth Co.Ltd(000831) group is about 100 tons, and the monthly order quantity of Ningbo Funeng is 32.5 tons. The supply variety is rare earth oxide spot, and the specific transaction price is the future spot transaction price.
Source: company announcement
According to the analysis of insiders, the supply of rare earth resources in the market is tight, and the upstream companies purchase oxide products or use them to smelt and separate metal varieties before selling them.
China Minmetals Rare Earth Co.Ltd(000831) group has medium heavy rare earth mining and smelting separation indicators and is the largest shareholder of China Minmetals Rare Earth Co.Ltd(000831) listed company.
Ningbo Funeng’s official website shows that the company is a rising star in the field of rare earth magnetic materials industry, focusing on the production, application and R & D of rare earth permanent magnetic materials. In 2014, “Funeng 10000 ton high-performance praseodymium neodymium, lanthanum cerium and dysprosium ferroalloy production line project” was approved by Ningbo Development and Reform Commission.
Tianyan inspection shows that the legal representative of Ningbo Funeng is Zou Ning, who is also the vice chairman of Ningbo Baotou Steel Zhanhao new materials Co., Ltd., another rare earth listed company China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) holding 51%.
Source: Official Website of the company
supply light rare earth products for Apple
Statistics show that Xintai technology and its subsidiary Jishui Jincheng are mainly engaged in the comprehensive utilization of rare earth recycled materials. At the same time, Xintai technology carries out the production business of rare earth permanent magnet materials through its wholly-owned subsidiary Zhonghang new materials.
Recently, Jiangsu Huahong Technology Co.Ltd(002645) announced that it has obtained the supplier qualification of apple. According to the announcement, Xintai technology signed a long-term supply agreement with Ganzhou Keli rare earth new materials Co., Ltd., an authorized purchaser of apple. From January 2022 to December 2022, the company supplied praseodymium and neodymium oxide products to it, with a monthly order volume of 50 tons.
According to the agreement, the supplier Xintai technology promises to provide the demander Ganzhou Keli with products produced with 100% recycled materials and certified by the certification company designated by apple.
rare earth prices rose
On the evening of January 7, Inner Mongolia Baotou Steel Union Co.Ltd(600010) and China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) announced that the price of rare earth concentrate provided by Inner Mongolia Baotou Steel Union Co.Ltd(600010) to China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) from January 1, 2022 was 26887.2 yuan / ton (dry weight, REO = 51%). Compared with 16269 yuan / ton in 2021, this price increased by more than 65%, exceeding market expectations.
Driven by many factors, rare earth prices are rising. According to the data of Shanghai Nonferrous Metals network, on January 14, the average price of praseodymium neodymium oxide was 902500 yuan / ton, terbium oxide was 12700 yuan / kg, and dysprosium oxide was 2965 yuan / kg.
Previously, the state owned assets supervision and Administration Commission of the State Council studied and reported to the State Council for approval, and agreed to carry out the strategic reorganization of relevant rare earth assets by Chinalco, China Minmetals and Ganzhou Municipal People’s government.
The Ministry of industry and information technology said that rare earth enterprises are encouraged to carry out merger and reorganization in accordance with the principles of marketization and legalization. Establish a scientific and reasonable comprehensive recovery mechanism of rare earth secondary resources to promote the comprehensive utilization of tailings resources and associated resources.
Citic Securities Company Limited(600030) said that the reorganization of upstream heavy rare earth resources has been preliminarily implemented, and the industry concentration is expected to continue to improve.
