It is estimated that it will take about half a year. Of course, we can't see the future market changes, and we can only predict according to the current market.

I. Rare earths

Baiyun Obo Mine, a subsidiary of Baotou Steel Group, the controlling shareholder of Baotou Steel, is a world-famous treasure house of resources, and its rare earth reserves rank first in the world. The company has the right to exploit the resources of Bayan Obo mine, with a tailings pond of 200 million tons and rare earth reserves (reduced oxides) of about 6,543,800 tons.

Baotou Steel acquired the tailings pond of the Group on 20 15, when the tailings resources were worth 26.8 billion yuan. 20 16 started the rare earth concentrate business. According to the company's announcement, in 20 17, the company sold rare earth concentrate 170,000 tons, with a net profit of133,600 yuan. In 20 18, the sales volume was 272,000 tons and the net profit was 2190,000 yuan. The company is the world's largest supplier of rare earth upstream resources, and its rare earth products mainly supply rare earth in the north (53.96 -3.04%, diagnostic unit). In 2020, the price will be 12600 yuan/ton, which is the same as that in 20 19.

The outbreak of rare earth nonferrous market is naturally closely related to the pursuit of funds. Public offering funds are an example. On February 22nd, Huatai Bairui CSI Rare Earth ETF was successfully issued, and it was also the first rare earth ETF in China, with a scale of 2 billion yuan for the first time. On March 3rd, Harvest CSI Rare Earth Industry ETF was officially issued. This is the second rare earth ETF on the market after the issuance of Huatai Bairui Rare Earth ETF, and the tracking target is CSI Rare Earth Industry Index.

Two. steel

The rail beam factory under Baotou Steel has become the largest steel profile manufacturer and the three major rail production bases in China.

Guotai Junan (17.04 +0.29%) pointed out in a recent research report that under the background of carbon neutrality, the steel industry's production reduction will be realized with a high probability of 202 1, the industry's de-capacity cycle will basically end, and the stability of industry performance will be steadily improved.

The production cycle is basically over, and the production capacity is no longer the ruin of steel profits. Carbon neutrality is the key content of the National People's Congress and the 14th Five-Year Plan 2 1. Since September 2020, China has stated seven times that it will be carbon neutral by 2030 and 2060. At present, 20 provinces, municipalities and autonomous regions in China have proposed to study and formulate the plan of peak carbon dioxide emissions in 20021year, Shanghai has clearly proposed the peak carbon dioxide emissions in 2025, and Chongqing has included carbon emissions in the EIA. The organization believes that carbon neutrality will be a major theme of industrial products in the next 5- 10 years, and the carbon emissions of the steel industry will account for 18% of the national total. It is imperative to reduce crude steel output and adjust production structure. Combined with the statement of the Ministry of Industry and Information Technology that the steel output will decrease in 2002 1 year, the crude steel output in 21year is likely to decrease year-on-year, and the de-capacity cycle of the steel industry will basically end in 20021year, and the de-capacity is no longer the ruin of steel profits.

1. From the perspective of the company.

Company introduction: The development and utilization of mineral resources, the production and sales of steel products are the main business of Inner Mongolia Baotou Steel Co., Ltd. The main products of the company are rare earth concentrate, fluorite concentrate, construction steel, cold rolled coil, galvanized steel plate, medium plate, seamless pipe, heavy rail and section steel. The tailings reservoir of Baiyun Obo Mine owned by the company has a resource reserve of 200 million tons and five seamless pipe production lines, which is the most comprehensive seamless pipe production base in China.

2. Rich in iron ore resources.

With Baiyun Oboxi Mine: 200 1, the company acquired the mining right and related mining assets of Baiyun Oboxi Mine of Baotou Steel Group. Baiyunebo deposit is mainly composed of five ore bodies: main ore, east ore, west ore, east Legueulle and east contact zone, of which west ore is one of the largest ore bodies. According to the evaluation of the Ministry of Land and Resources in September 2005, it can be seen that the iron ore resources of Xikuang are 667 million tons, and the mining method is mainly open-pit mining, and the mineral is magnetite, with an average grade of 32%. The south of the mining area is 50km away from Baotou City 150km and 7km away from Baiyun Obo Railway Station, with convenient transportation.

3. From the perspective of industry

Many benefits have been gained from the expansion of new energy vehicles, wind power, industrial robots and other emerging industries, and the overall demand for rare earths may show a long-term rapid growth trend. On the supply side, China is not only the largest supplier of rare earths in the world, but also the largest source of incremental supply of rare earths. The policy is to control the total amount of indicators, so that it is not easy to lead to excessive investment and overcapacity, so that rare earth prices can have the logical support of long-term high operation. As the strongest supplier of rare earth concentrate in the world, Baotou Steel is expected to achieve steady profit growth with the expansion of emerging industries.

To sum up, Baotou Steel is rich in iron ore resources, and the company is also the largest supplier of rare earth concentrates in the world. Because of this dual advantage, there is still hope to maintain profit growth and usher in rapid development.