Rare supporting countries face challenges

Rare is called "industrial vitamins" in the petroleum, chemical, metallurgy and other fields have a wide range of applications. China's rare earth storage capacity has been the first in the world, but also has been responsible for the global supply of rare earth. However in recent years, China's rare earth storage capacity declining abroad has also been engaged in the mining, production of rare earth production chain, China's rare earth industry thriving situation will be broken. Coupled with the existence of their own domestic industry "black chain" and many other issues, making China's rare earth industry is facing serious challenges, many rare earth companies stock prices continued to fall. However, in the August 7, issued by the Ministry of Governance rare earth industry special action plan, but also to revive confidence in the market, each rare earth stocks have soared.

Champoux consulting industry analysts believe that the rare earth industry challenged by the domestic political and economic factors lead, but the Government may take reasonable measures integration of the domestic rare earth industry in order to improve the industry's international competitiveness.

Since the government introduced a series of policies to protect rare earth resources rational development of rare earth resources once farewell "cabbage price" historical prices rose sharply, as many people profiteering ways. However, since 2010, rare earth prices began to decline. On the one hand because of falling demand, the financial crisis, whether domestic or abroad, the phenomenon of poor recovery, consumer fatigue, weak demand, demand for rare earths is decreased, on the other hand there are a number of foreign countries have been engaged in the development of rare earth production projects under construction or proposed, breaking the Chinese rare earth supply situation in the world, diverting a part of China, market share, resulting in a serious decline in corporate profits, allegedly over half net profit fell Baotou Steel Rare Earth, which had to take measures to stop the Poly. In addition, the domestic rare earth industry itself there are also major issues, namely, "black industry chain" rampant. 2011, rare earth prices rise once, attracted a large number of "black" enterprises, privately mining and tax evasion, profiteering, causing confusion in the market, industry-wide downturn in profits.

And the Ministry of the special action plan said that from August 15 onwards, the joint Ministry of Public Security, Ministry of Land Resources, Ministry of Environment Protection and other eight ministries, to carry out a three-month fight against rare earth mining, production and circulation of illegal irregularities special events. Minister of Industry and the following day, "the Fifth China Industry Forum", once again shows the country's determination to combat illegal exploitation and to promote industry mergers and acquisitions. To focus on hitting and integration of the special action, no doubt the market has injected confidence in the collective rare earth stocks soaring.

In the "2013-2017 China rare earth market research report" is mentioned, Chinese rare earth development still faces challenges, reasonable and effective measures to promote the country can promote its further development. However, the challenges facing the rare earth industry, not the State's determination to stand can be resolved, but also requires a sound institutional framework and standardize market order.


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