Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-Tech released announcement on Production Shutdown of Subordinated Smelting Enterprises, according to which, Baotou Steel Rare-Earth decided to stop production of its smelting enterprises (including smelting factories directly subordinated to Baotou Steel Rare-Earth, Baotou Huamei RE Products, Inner Mongolia Hefa Rare Earth Science & technology Development Co., Ltd, and Zibo BaoSteel Lingzhi Rare Earth Hi-Tech Co., Ltd.) for one month from Oct. 19, with the aim to further stabilize the market and balance the supply and demand.

It is time to resume production now, but the prices of related rare earths dropped slightly instead of increasing. In terms of the prices of rare earths, the measurement of production shutdown exerts a little effect. Thus, it is expected that the resumption will not strike the rare earth price heavily. The sluggish downstream demand still exists that hinders the recovery of rare earth market. 

Currently, Baotou Steel Rare-Earth is preparing for the resumption which will start in a few days. The reason for the delay of resumption is that enterprises are conducting equipment maintenance and repair during the production shutdown. The resumption will be postponed for 5 to 6 days accordingly.

Price of Nd Oxide in China，2010-2011（unit：RMB/mt）

Source: ResearchInChina