The Ministry of Industry and Information Technology takes the lead in researching and establishing the national rare earth storage mechanism

Abstract The source disclosed to reporters that the Ministry of Industry and Information Technology is taking the lead in researching and establishing a national rare earth storage mechanism to stabilize the fluctuation of rare earth prices, and plans to establish a rare earth trading platform on this basis for enterprises to conduct public transactions. This is the second time that the Ministry of Industry and Information Technology took the lead in taking measures after the establishment of the Rare Earth Industry Association...

The source disclosed to reporters that the Ministry of Industry and Information Technology is taking the lead in researching and establishing a national rare earth storage mechanism to stabilize the fluctuation of rare earth prices, and plans to establish a rare earth trading platform on this basis for enterprises to conduct public transactions. This is the second time after the establishment of the rare earth industry association, the Ministry of Industry and Information Technology took the lead in taking measures, which means that the Ministry of Industry and Information Technology has strengthened the management of the rare earth industry into a substantive stage.

According to sources, the national rare earth storage and storage mechanism is under study, and further plans will be formed after further communication and research with enterprises. When the price of rare earth drops to a certain price, the enterprise will store it in the market according to the requirements of the purchasing and storage mechanism; when the price of rare earth rises to a certain price, the enterprise will sell the rare earth according to the requirements of the purchasing and storage mechanism.

In May last year, the State Council issued the "Several Opinions on Promoting the Sustainable and Healthy Development of the Rare Earth Industry", demanding the establishment of a strategic reserve system for rare earths, which will be established in accordance with the combination of national reserves and enterprise (commercial) reserves, physical reserves and resources (land) reserves. Strategic reserve of rare earths.

Galaxy Securities believes that the price of rare earth has remained stable in the near future. Last year, the price of rare earths fluctuated greatly, which was not conducive to the stable and healthy development of the rare earth industry, but also brought great difficulties to the integration and regulation of the rare earth industry. After the establishment of the rare earth storage mechanism, the large fluctuations in the price of rare earths are expected to be suppressed, and the market prices will be stabilized from the perspective of controlling supply and demand.

An analyst in the non-ferrous industry believes that Baotou Steel Rare Earth has established a similar storage mechanism, but when the price of rare earth is high, it is difficult for companies to have the incentive to sell rare earth to stabilize prices. When the price of rare earth is at a low level, the impact of the company's purchasing and storage behavior on market prices is limited. The management of rare earths should be managed from the source to combat illegal piracy, which will also play a stable role in market prices.

Galaxy Securities believes that the state can conduct more supervision of trading behavior through the rare earth trading platform, which is conducive to the stability of rare earth prices and the reduction of private mining and theft.

The state strengthens the rare earth industry management rare earth storage mechanism is favorable for the orderly development of the industry

From the establishment of the Rare Earth Association to the use of special invoices for rare earths, the state's regulation and integration of the rare earth industry is constantly strengthening. China Securities Journal reporter learned from the sources that the Ministry of Industry and Information Technology is taking the lead in researching and establishing a national rare earth storage mechanism to stabilize the fluctuation of rare earth prices, and hopes to establish a rare earth trading platform on this basis for enterprises to conduct public transactions.

This means that fluctuations in rare earth prices will be more stable and industry development will be more orderly.

Ironing price fluctuations

As a national strategic resource, rare earth storage and storage has always been highly valued. In May last year, the State Council issued the “Several Opinions on Promoting the Sustainable and Healthy Development of the Rare Earth Industry”, clearly stating that a strategic reserve system for rare earths should be established, which will be combined with the reserves of the state (commercial), physical reserves and resources (land) in accordance with national reserves. Ways to establish a strategic reserve of rare earths.

It is understood that in mid-May this year, the relevant departments convened 14 rare earth separation enterprises to discuss the issue of rare earth reserves. This is understood by the market as a substantial advancement in the collection and storage of rare earths this year.

According to sources, the state will establish a rare earth storage mechanism. When the price of rare earth drops to a certain price, the enterprise will store it in the market according to the requirements of the storage mechanism; or when the price of rare earth rises to a certain price After that, the company will sell rare earths as required.

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