Change in the situation to be a rational view of the rare earth industry

Recently, there is news that China is brewing including crackdown private mine , the introduction of "Rare Management Regulations", differentiated management of different rare species including a number of New Deal in response to export -changing. However, insiders pointed out that this combination of punches in order to look good , the government needs to do more to "warm up ."

Recently, Japanese media said the World Trade Organization (WTO) dispute settlement mechanism to complete panel ruled that the interim report , supports the United States , Japan and the EU against Chinese rare earth export restrictions policy violations aspirations. China will be forced to the existing policy of rare earth export quota of rare earth export tariffs to be adjusted.

Soon the news , while media reports, China is brewing a number of New Deal response to industry change in the situation , including the crackdown private mine , the introduction of "Rare Management Regulations" , the different varieties of rare earth differentiated management.

However, insiders pointed out that this combination of punches in order to look good , governments need to do more to "warm up" , while the industry also need a rational view .

Pressure from the WTO litigation

For a long time , disorderly exploitation , destruction of the ecological , low-cost exports is China 's rare earth industry ills . But the United States, Europe, Japan and other economies do not care environment , many times to launch an attack .

Since 2009 the EU requested the lifting of the rare Chinese export quota system products , countries began to fight for China's rare earth exports for various actions , intended to get cheap rare earths.

Investment Advisor in the metallurgical industry researcher Weiqi Ning believes that the future of China 's rare earth industry will show a " wolf inside and outside tiger " situation. He said: "The system of forced adjustment pressures rare earth export quota system , the export tariff will be open . This may not only lead to rectify the problem is being revived , smuggling trafficking phenomenon also on the rise, but will aggravate plight of the industry was forced open . "

China Nonferrous Metals Industry Association vice president, China Rare Earth Industry Association vice president Wang Qin had said in public : "WTO litigation involving nearing the end of rare earth , rare earth export quota management will be canceled in case after the end of the agenda , recommend that you first began to consider a lighter rare earths . " lighter rare earth exports gradually opening up , or to inhibit outflow of dangerous heavy rare earth .

In addition to China , light rare in the United States , Russia, Australia, India, South Africa and other countries also have distribution and reserves greater. But more than 70% of global heavy rare earth are concentrated in southern China , and in the high-tech field , heavy rare earth with light, enhancing the effect of electronic product quality , the role is irreplaceable. Of heavy rare earths are many rare and unique minerals, including heavy rare earth elements such as terbium and dysprosium can only be mined for 30 years.

Industry consolidation paid off

WTO ruling will make 2014 the news of rare earth export environment changed dramatically. Response time left to the Chinese government did not so long expected by the market , which also deepen governance policies Forced rare earth industry accelerated introduction . Brewing industry consolidation as well as a number of legendary New Deal are rare cases does the WTO "warm up" to prepare .

In an interview with analyst Zhang babe International Business Daily reporter interview that through consolidation , illegal production of illicit export of rare earth have converged , irregular transactions to reduce rare earth , some companies began to sell only with votes of rare earths. Rare orders also increased in July and August .

Baotou Steel Rare Earth recently released listing price and the purchasing and storage media, preaching the message , triggering market participants to better expectations. Zhang babe believes that the current part of the business has different magnitudes raised some prices oxides , such as neodymium oxide, praseodymium , neodymium , praseodymium , dysprosium oxide , etc. As expected for the better, rare earth prices likely to rise in November , but the rate of increase and the duration depends on the state purchasing and storage policy implementation and execution of real intensity , and whether there are other favorable policies .

Zhang Babe said : "The state macro-control through the exploitation of resources , production, management is more focused and effective . In any case change , the export prices are the bottom line. "

Chinese Society of Rare Earths authorities told International Business Daily reporter interview that the countries are not introduced special policies for large state-owned enterprises . " a number of policies to improve the access threshold for rare earth enterprises , but in reality to hitting , optimizing industrial structure, develop high-tech . "

Need a rational view

For the price rise, the authorities believe that the price rise is short-term phenomenon , affecting the price of rare earth by many factors, including supply and demand , domestic and international mining , etc. , need a rational view .

Zhang babe also believes that only by the demand for support and promotion of market prices is really good . "Over the last two years, the overall price of rare earth all the way down , in addition to previously high prices , down a large space , the most important reason is the demand is small. "

" part of the rare earth enterprises reflects the current rare few orders and lower profits . Rare upstream and downstream enterprises generally face how to price and enterprises in the production cost and risk management issues . "Zhang Babe pointed out that " the most important question is weak end consumer , which in turn is closely linked with the economic environment . "

The authorities said that since 2011 rare earth prices rose, many downstream firms collapse. Overall global demand is currently weak . Rectifying although some effect, but the black industry chain still exists. "The key is to protect the rare earth industry, upstream and downstream common development of enterprises , the state should be targeted to encourage the development of high-tech enterprises . Which in turn is a long-term process . "


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