Baotou Steel Rare-Earth will halt firing, smelting and separation of rare earths at its factories in Baotou in the northern region of Inner Mongolia for one more month.
BEIJING -- China's largest rare-earths producer on Tuesday said it will suspend output at some plants for another month, extending a halt started in late October to stem falling prices.
Baotou Steel Rare-Earth will halt firing, smelting and separation of rare earths at its factories in Baotou in the northern region of Inner Mongolia for one more month, the company said in a statement filed with the Shanghai bourse.
"The rare-earth market recovered slightly in the two months when production ... was suspended. But there has been no fundamental turnaround," it said.
The firm, also called Inner Mongolia Baotou Steel Rare-earth (Group) Hi-tech, on Oct. 23 halted production at almost all of its plants, including two in the eastern province of Jiangxi.
China produces more than 95% of the world's rare earths, 17 elements crucial for making a range of high-tech products including iPads and wind turbines.
The country's control over the sought-after resources -- through production caps and export quotas -- has sparked a dispute with major trading partners.
The price of praseodymium-neodymium oxide, a rare-earths compound used for ceramics and magnetic materials, has slid to around 300,000 yuan ($48,000) per ton, less than one fourth the level at the highest point last year, the official Xinhua news agency said Tuesday.
Baotou Steel Rare-Earth implemented a similar month-long production halt in October last year, but failed to reverse the downtrend in global and domestic prices of rare earths.
In October, the company said its third-quarter net profit slumped 89.6% from the same period last year to 119.9 million yuan.
Copyright Agence France-Presse, 2012