News What stopped Chinese rare earth magnet companies?

What stopped Chinese rare earth magnet companies?

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Recently in China, the ministry of industry and information released on its website, ministry of industry and information, ministry of land and resources, National development and reform commission, etc, 6 ministries in total, jointly issued the notice concerning the special action of renovation towards the national rare earth magnet production. The action will last from August 1st to December 31th.There will be investigation against unplanned and over-planned manufacturing and selling illegal products of rare earth magnet, as well as other behaviors that disobeyed the mining regulation. Mining and smelting companies, according to the law, are supposed to run in the purpose of maintaining the normal production, circulation, and the healthy development of China’s rare earth industry.

For small rare earth separating plants, they were used to buy original magnets at high price. After the price of rare earth magnet oxide went down, most of them would lose money for sure if they kept producing. As a result, some plants would instantly stop, wait and see. This situation made the rare earth magnet separating market which had had a lot of empty capacity go into an even worse deadlock.

The official mines already used up all their indices, there were no invoices for surplus magnet minerals at present. Again, as the Chinese government was very strict to the illegal trading of rare earth, many private businesses dare not to buy from the private mine owner any more.

Without enough raw materials especially under the background of lack of magnet minerals everywhere, the empty capacity of the rare earth separating companies became a big problem. Besides, the government was much stricter to the control of the rare earth magnet, which greatly darkened the future of the rare earth separating companies in Ganzhou city. Most places in Ganzhou are mountains where the development is relatively slow. The rare earth magnet mine, together with tea and oranges, is the specialty, the main resource and financial income of the local government.

For people in Ganzhou, strangers could not buy the minerals easily without introduction from the insiders. As the government becomes very strict, those who used to sell rare earth magnet minerals in public dare not do it on the table. They will not sell to any one unless introduced by acquaintance. All the private minerals are currently stocked in their houses since it is not easy to sell.

The rare earth magnet minerals from private businesses could not be sold to official companies in legal way. Those minerals could be sold only to small private separating companies. The price is only half to the official rare earth magnet price of in August. They were able to offer at even lower price as long as the quantity was big. They would also provide as much as you want because of the terrible situation. Right now, you could get one kilo with only around 100 RMB. Given that they could not provide required documents for trading, the official rare earth magnet separating companies were unable to count their minerals into the cost and had to refuse them.

Written by Stanford Magnets, neodymium magnets, smco magnets, alnico magnets and more

What stopped Chinese rare earth magnet companies?
General Contributor
Janice is a writer from Chicago, IL. She created the "simple living as told by me" newsletter with more than 12,000 subscribers about Living Better and is a founder of Seekyt.

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