Hongpo Shen

About Hongpo Shen

Hongpo Shen is a Chinese freelance writer, professional blogger focusing on China's rare earth market, and previously held 15 years of experience in the local government of Shanghai, China. whose degrees include International Economics & Trade and Political Science. He has been an editor for InvestorIntel since May 2012.

China’s new round of rare earths stockpiling to boost prices

China-Stockpile Regardless of whether you consider the recently opened Baotou Rare Earths Products Exchange or the rare earth stock exchange, the prices of rare earths in China have gained strength recently, buoyed by the efforts of China’s State Bureau of Material Reserve (SBMR) to proceed with a new round of its rare earth stockpiling plan. The state-run ‘China Securities Journal’ reported, on April 9th, that an agreement over reserves has been signed between the SBMR and some large rare earth producers (including China Minmetals Rare Earth, Inner Mongolia Baotou Steel Rare-Earth, Chinalco Rare Earth, Rising Nonferrous Metals Co Ltd, Ganzhou Rare…

The WTO’s preliminary ruling against China’s rare earths export restrictions arouses strong reactions among the Chinese

REE_WTO The WTO's preliminary ruling against China's rare earths export restrictions violated global trade rules, which has already aroused strong reactions among the Chinese people. "China has damaged and polluted its environment and gets a low price for its exports, however, foreign importers obtained profits equal to dozens or even 100 times the cost from deep processing, the developed countries should feel gratitude toward China deep down even if they are reluctant to admit it publicly, considering China's sacrifice of its environment, the WTO's decision is unfair and unsustainable on China", said Zhang Anwen, vice secretary-general of the Chinese Society of…

China’s rare earth products exchange to stabilize REE prices and regulate trades

China's first rare earth products exchange -- Baotou Rare Earth Products Exchange will officially start running on March 28th. This launch, after nearly five months of trial operation, aims to provide a standard, open and transparent platform open prices for rare earth products. The Baotou Rare Earth Products Exchange has set three trading modes, namely hot-sale product bid mode, listing trading mode, and concurrent trading mode. The modes of the listing trading and hot-sale product bid have already been operating during the trial operation according to Gu Ming, General Manager of the Exchange. The concurrent trading mode this time will…

Rare Earth WTO case against China may result in opposite effect

WTO-China The WTO will officially issue a preliminary report in a landmark case against China's export restrictions on rare earth minerals, tungsten and molybdenum. These restrictions include export duties, export quotas, minimum export price requirements and export licensing requirements. The case was initiated in July 2012 by the United States, the European Union, and Japan. In this case the United States along with others have accused China of using export taxes and quotas to force companies to move their factories to China to tap these resources. China as the primary source of rare earths has gained the ability to significantly affect…

Baotou quotas reflect stable supply and demand for rare earths in 2014

Inner Mongolia Baotou Steel Rare-Earth Group Hi-Tech Co. Ltd. (Baotou) announced on March 14th that its net profit for fiscal year (FY) 2013 was RMB 1.574 billion Yuan, 4.22% higher compared to FY 2012 (RMB 1.510 billion Yuan) while total annual revenue dropped 8.33% year over year from RMB 9.242 billion Yuan in 2012 to RMB 8.472 billion Yuan. Its basic earnings per share were RMB 0.65 Yuan in the period. The prices of rare earths in China's domestic market dropped by about 20% to 60% compared with 2012 especially praseodymium-neodymium oxide, which, at 319,000 Yuan/ton, decreased by about 21%.…

Shen: CHINALCO to convert China into a net importer of flake graphite

570px-Aluminum_Corporation_of_China_logo_svg Australia's Syrah Resources Limited (‘Syrah’ | ASX: SYR) announced on March 7th that it has signed a Memorandum of Understanding (MOU) for an Offtake Agreement with China Aluminum International Engineering Corporation Limited (hereinafter referred to as "CHALIECO"), which is affiliated with ‘Aluminum Corporation of China’ (hereinafter referred to as "CHINALCO"). Under the MOU, CHALIECO will buy 80,000-100,000 tons of flake graphite from Syrah’s Balama Project in Mozambique. If this offtake agreement is successful, it will signal that profound changes are taking place in both the Chinese and international graphite market. Moreover, it will raise the question as to whether CHINALCO will…

China promotes rare earth industry consolidation in Sichuan

daocheng_yading__sichuan__china On February 28th, Chinalco Rare Earth, Leshan Shenghe Rare Earth, Grirem Advanced Material Co., (SHA:600206) and Sichuan Hanxin Mining Development Co., which signed a Memorandum of Understanding (MoU) on cooperation projects to establish a joint venture to consolidate and merge rare earth producers and resources into larger companies in Sichuan Province, in which Chinalco Rare Earth will take a controlling stake, according to Shanghai-listed Shenghe Resources Holding Co (SHA:600392), announced on March 3th. The consolidation aims to reduce the number of rare earth companies in the mining, smelting separation sectors, thereby to realize its deepen control over rare earth mining…

China Release 2013 Annual Report for Rare Earth Industry to Implement a System of Classified Management for LREE and HREE

InvestorIntelReport-Quote China's 2013 actual output of rare earth ore production was 80,400 metric tons, while the total REO output of rare earth smelting and separating production was 83,300 metric tons, accounting for 85.7 percent and 92.1 percent of its planned production respectively. the country's rare earth industry revenue was close to RMB 76.9 billion Yuan last year, a year-on-year growth of 7.9 percent, but total industry profits fell 28.1 percent to RMB 7.74 billion Yuan, mainly caused by falling prices, according to a latest report titled "Situation of Rare Earth Industry Economy Operation in 2013" released by the China’s Ministry of…

China’s rare earth market on the rebound as exports trend upwards in the first month of 2014

On February 20th China’s Bohai Commodity Exchange a local government-backed online trading platform for spot commodities in Tianjin city launched its dysprosium oxide (Dy2O3) trade February 24, 2014. Dysprosium oxide spot prices stood at RMB 1,821 Yuan per kg (vat included) slightly more than the price of RMB 1792-1906 Yuan per kg in the domestic market while the total volume was 300,762 kg and the total order quantity was 62,624 kg during only three days. Currently the prices of rare earth raw materials have been rising in the country's domestic market, such as last week's praseodymium-neodymium oxide and dysprosium oxide…

China Issues Cleaner Production Technology Promotion Plan for Rare Earth Industry

China-MIIT On February 10th, China's Ministry of Industry and Information Technology (MIIT) issued the Cleaner Production Technology Promotion Plan for the Rare Earth Industry (a.k.a. The Plan). The Plan states that China aims to accelerate the industrial application and promotion of low-carbon low-sodium free ammonia nitrogen rare earth oxide separation and purification technology while completing the industrial application demonstration of rare earth ore concentrate low temperature sulphating and dynamic roasting technology. This is done in order to reduce the usage amount of acid-base in rare earth smelting and the separation process improving the comprehensive use of resources by 2017. "To accelerate…