U.S. media said: China is ready to tighten the global supply of rare earth

U.S. media said that China began to step up to the widespread control of rare earth industry , the acquisition of state-owned mining giant, small producers and pave the way for implementation of the Beijing integrated command .

United States reported that the central government is concerned, this disunity like industry is an urgent need for treatment. Beijing is facing WTO requires its rare earth export quotas to cancel the pressure , and is a major weapons export quotas affect global prices . About 80 percent of the world's rare earths from China , these rare earths are used in strategic industries such as defense and telecommunications .

But government officials said that although there are supply advantage, but China 's rare earth industry rampant smuggling and unlicensed operation , resulting in pollution and low price. Analysts estimate that 80% of China 's rare earth miners , processors and traders are operating without a license .

China 's largest rare earth producer , state-owned Inner Mongolia Baotou Steel Rare Earth , Inner Mongolia Autonomous Region will be integrated within nine rare earth upstream . Analysts said the acquisition means overwhelmed Steel achieved a monopoly in the northern region , then, the company will begin to absorb the production capacity of southwestern Sichuan province .

Baogang Group submitted a statement to the Shanghai Stock Exchange , said the company will " improve the protection , development and utilization of rare earth strategic resources , efforts to improve the concentration of the rare earth industry , laying a solid foundation for the formation of a national Rare Earth Group . " Xinhua News Agency on the 3rd , said Beijing will set up a group to coordinate rare earth production quotas, mining permits and other policies. This group will consist of six state-owned manufacturer : North Rare Earth Group , Minmetals and Chinalco two central enterprises , and Ganzhou Rare Earth , Rising Nonferrous Metals, Rare Earth Group Xiamen Tungsten and other three places . These big companies accounted for about 85 % of China's rare earth production.

British North Quayle Blue Oak analyst Frank Tang ( sound ) said: "The Chinese government is about to complete the integration of rare earth mining , now integrated rare earth processing industry. " It is estimated that about 120-400 Chinese rare earth processing enterprises.

Reported that the integration issue such a signal that China is ready to tighten international supply of rare earth again . December 2013 , the Chinese Ministry of Commerce announced that it would cut next year's first batch of export quotas , which for the first time in two years , but eventually the quota in July to be confirmed.

Rare earth prices remained depressed . The price of lanthanum oxide is approximately $ 6 per kilogram , far below the 2011 record of $ 104 per kilogram highest price . Baotou Steel Rare Earth twice in the past three years suspended rare earth production , but rare earth prices continued to decline. After three years of soaring prices , reducing global demand , the development and use of new sources of efficiency caused by rare earth prices plunged .


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