Light rare earth market will usher in a more brutal competition

In late October , the World Trade Organization (WTO) dispute settlement panel to submit a preliminary ruling to the Chinese that support for Japan , the United States and the European Union on Chinese control of rare earth export tariffs violate WTO rules opinions. At the same time , the world's supply of rare earth diversified pattern has been formed , and hundreds more have been put into new projects is seeking to compete for the global rare earths market share. Reporters recently interviewed national experts learned that by the above two factors, China's rare earth products market will exacerbate the polarization of light rare earth products, or will encounter strong impact .

Full liberalization of domestic exports or

Institute of the Ministry of industrial raw materials CCID Institute Yuankai Hong told reporters that China lanthanum , cerium and other light rare natural reserves are relatively large excess phenomenon, and dysprosium, terbium and other heavy rare earths are scarce . Terbium , dysprosium is an important part of the permanent magnets , and more used in high-tech fields , substitutability small . Global reserves of heavy rare earth less gap, is a veritable scarce commodity . While 70 % of the heavy rare earths are located in China , which is also the world compete for the main reason for China's rare earth resources .

Rare senior experts , Inner Mongolia Rare Earth Co., Ltd. Huayi Vice Huyao Bin believe , WTO rare earths in favor of litigation is unlikely. In accordance with the dead convention, Chinese export products should be abolished for all taxes and fees, except as expressly provided . Annex to the Agreement listed rare earth tax rate of approximately 10%, which is the highest tariff charged at the standard of rare earth , while China 's rare earth export tariffs currently at 25%. In addition , in accordance with WTO rules , rare earth quotas have to be canceled. Practicing rare earth export quota license system since 1998, has more than 15 years , October 28 , the Ministry of Commerce announced the 2014 re- rare earth export quota reporting conditions and reporting procedures .

"In the case of full liberalization of exports , China's light rare earth market will usher in a more brutal competition in the market of rare earth severity of the two products will exacerbate polarization. " Huyao Bin says. Huyao Bin pointed out that the heavy rare earths , the lowering of tariffs and quotas will undoubtedly stimulate and expand the resource exploration and development , increasing environmental degradation origin ; LREE , domestic existing and new production capacity will be competing LREE release , market conditions or back into a few years ago appeared "cabbage price ."

However, Huyao Bin also told reporters that the next step, China will be advanced to the WTO Arbitration Commission further complains that even losing our country adjust to the new policy of export tariffs and quotas , as well as six months to one year grace period , that is rare tariffs, quotas may fully liberalized by 2015 at the latest .

Overseas expansion propelled polarization

Inner Mongolia University of Technology Dean Zhang Yin said rare earth , boosting capacity expansion abroad polarization .

Zhang Yin said, except for China , the world has more than 260 companies , more than 420 rare earth projects concentrated in the Americas , Europe and Africa , and the project mostly light rare earth -based, which will to some extent change the global pattern of light rare earth supply and demand . Statistical point of view , if the project has been put into all of overseas production , China's rare earth products will be 95% global market share dropped to 73% ; expansion of production again , this proportion dropped to 57%. If the completion of all construction projects in foreign countries of production, the proportion of China's rare earth supply Jiangzai dropped about 50%.

China Rare Earth Industry Association Secretary-General Ma Rongzhang said light rare earth products abroad, the cost advantage of China's light rare earths also weakened the international competitiveness . According to his analysis , the U.S. molybdenum company of rare earth products cost less than direct Baotou Steel Rare Earth , because the cut-off grade molybdenum mining company more than 9 percent , Baotou mine cut-off grade of only 5% , and molybdenum Our own gas-fired power plant , electricity cost is only 0.2 yuan / kWh. In addition, foreign light rare earth mine with scores better than the domestic . If you take into account the impact of export tariffs and quotas , domestic rare earth products are exported to the international market to increase by about 20% the cost . Global capacity expansion may lead to global light rare earth prices fell , while the heavy rare earth supply remains tight , which will exacerbate the severity of the situation of rare earth market rainbow night .

Experts suggest that promote balanced use

The severity of the polarization of the two major markets of rare earth products , adverse balanced development of the industry as a whole . In view of this , Ma Rongzhang proposal , government and corporate balance strongly promote the use of light and heavy rare earths . Lanthanum , cerium and other elements of an annual surplus surplus 30,000 ~ 50,000 tons , we should vigorously develop new markets, encourage lanthanum , cerium in the field of environmental protection , structural material in applications such as water purification , catalyst, UV protective glass, rare cast iron, steel, rare earth , rare earth magnesium , rare earth copper, rare earth and aluminum , combined with comprehensive development on the downstream industry chain . According to the current changes in domestic and foreign markets as well as rare earth

Reserves characteristics, there are other ways to take the severity of the focus control heavy rare earth exports .

General Manager Zhang said that Baotou Steel Rare Earth , Baotou Steel Rare Earth is the world's largest light rare earth suppliers , Chinese light rare earth export restrictions opens, will be fully integrated into the international market, facing fierce competition. He suggested that the current north-south several Rare Earth Group as soon as possible scientific management mode , allowing operators more in line with market rules . This is very beneficial not only for the industry regulator , also in line with market rules and WTO rules .

Although WTO rules do not support the number of Member States to restrict exports of high tariffs and setting behavior , but allows member states to manage exports through export qualification . A total of 17 species of rare earth , if he loses , China can also negotiate with foreign countries , first release the export of some varieties , namely light and heavy rare earth export of differentiated management , try to weaken the polarization impact on the domestic rare earth industry .


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