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InvestorIntel’s Hongpo Shen reported that Inner Mongolia Baotou Steel Rare-earth (Group) Hi-tech Co. Ltd. (SSE:600111), Aluminum Corporation of China Ltd. (HKEX:2600) and Xiamen Tungsten Co. Ltd. (SSE:600549) have all had their rare earth consolidation plans approved by China’s Ministry of Industry and Information Technology.
InvestorIntel’s Hongpo Shen reported that Inner Mongolia Baotou Steel Rare-earth (Group) Hi-tech Co. Ltd. (SSE:600111), Aluminum Corporation of China Ltd. (HKEX:2600) and Xiamen Tungsten Co. Ltd. (SSE:600549) have all had their rare earth consolidation plans approved by China’s Ministry of Industry and Information Technology.
As quoted in the market news:
In early January, The State Council, China’s cabinet, has approved a plan to consolidate the country’s rare earth upstream, while forming six national rare earth industry groups, which includes Xiamen Tungsten, Baotou Iron and Steel Group, China Minmetals Corporation, Aluminum Corporation of China, Guangdong Rare Earth Group and Ganzhou Rare Earth Group.
China’s rare earth upstream industry is confronted with serious overcapacity, according to official data, utilization rates in the country’s smelting and separation sector stood at just 25% to 35% in the first half year, while rampant illegal production and the smuggling of rare earths, which resulted in a sluggish price and sharp decline in profits in the sector during the first six months.
Click here to read the full InvestorIntel report.