New China mineral resource group established

The inaugural meeting of China National Mineral Resources Group Co., LTD was held in Beijing On the morning of July 25. As the youngest state-owned enterprise, the establishment of China Mineral Resources Group is of great significance, which will enhance the global voice and competitiveness of China's steel industry. This will also affect the future of the magnet industry.

The main raw materials of Ndfeb magnets are rare earth metal neodymium, rare earth metal praseodymium, pure iron, aluminum, boron iron alloy and other rare earth raw materials. Among them, neodymium (Nd) accounted for 32%, iron (Fe) 64% and boron (B) 1%. Rare earth resources, as one of mineral resources. The price of Ndfeb is also deeply affected by the price of mineral resources.

China is a big country of mineral resource production, the variety of mineral resource is complete, but the structural contradiction of supply is outstanding. Iron ore is a raw material that plays a key role in the national economy. However, even though it is a major producer and consumer of iron and steel, China depends heavily on iron ore imports. Some new energy mineral supply capacity is in serious shortage. In particular, minerals such as lithium, nickel and cobalt, which are consumed in the manufacture of electric vehicle power batteries, are in an obvious inferior position in the world. They have long relied on overseas imports, and their dependence on foreign countries is very high.

The rapid development of the new energy industry chain has also driven the incremental development of rare earth demand. Under the new international situation, the national level attaches great importance to the rare earths industry chain, strengthens integration efforts and strictly controls supply indicators to reflect the real value of rare earths. However, the growth of new overseas production capacity is weak in the short term, and the supply of rare earth may continue to be tight. With the development of China Mineral Resources Group, the trend of rare earth prices is expected to be no longer exponential growth or collapse as in the past, but steady and high levels.

Wang Guoqing, director of Lange Steel Research Center said, "If China Mineral Resources Group conducts negotiations as a unilateral system in the form of platform procurement, it will enable all types of domestic steel enterprises to obtain uniform pricing. At the same time, the huge procurement volume also helps to drive down the price of raw iron ore procurement. Overall for the domestic iron ore supply and demand relationship, certainly can improve."