RE-depth industry needs a revolution

Although state support Steel, Minmetals , the aluminum construction of large rare earth group 's message has been flooding the market , but in fact in the past two years, RE integration process is not smooth , the major rare earth enterprises and local governments and is Game integrate emerging enterprises.

In the past, due to the pattern of China's rare earth industry is very chaotic, fragmented very serious problem, causing great waste of resources, which is not consistent with economic laws , nor in the national interest . The reason, at least the following two points :

On the one hand , the domestic distribution of rare earth resources determines the size of a small market players in the industry , a wide range of features , easy to form a pattern of vicious competition ; on the other hand , China's rare earth industry has not yet formed orderly resource development , smelting separation and markets circulation order to promote the spread of the rare earth industry malformation pattern . Deformity caused by the current industrial pattern of rare earth industry, " infighting " , oversupply , lack of pricing power situation.

In this case , China's rare earth industry in urgent need of a deep transformation of the industry , the industry needs a thorough reshuffle . Meanwhile, should regulate the rare earth industry consolidation , the off resolutely turned off, the combined firm would merge , in order to maintain the sustainable development of rare earth industry to ensure our long-term certainty of rare earth pricing.

From a broader perspective, the relevant departments , state-owned enterprises and local governments should focus on long-term establishment of strategic reserves of rare earth resources system , planned exploration and application of rare earth resources. Externally, ensures cooperation or negotiation of national interests ; internally , you can between national ministries and rare earth enterprises to establish smooth and efficient coordination mechanism .

In fact, a large group of rare earth industry is the trend , a large group of standardization contributes to the development of the industry , the country 's unified management easier , convenient and policy interventions . In addition, the group of rare earths Goes disorder can reduce the market vicious competition to some extent , help to protect rare earth prices , and a large group will receive the corresponding preferential policies .

The good news is led by the Ministry to develop a large group of rare-earth program , has received the State Council approved , in accordance with the program content form " 1 +5 " pattern, that is, from the Baotou Rare Earth Rare Earth Group founded north by Minmetals and Chalco two central enterprises , and Ganzhou rare Earth , Rising Nonferrous Metals, rare Earth Group Xiamen Tungsten three local group consisting of the remaining five .

Group of government decision-making arrangements , and give full play a decisive role in the allocation of resources in the market , business-oriented , diversified investment , market operation , and promote mergers and acquisitions by the "Let me rephrase " to " I want restructuring" changes. Five rare earth group integration upstream business , will change the structure of exports of rare earth products , the formation of a greater competitive advantage and consistent export policy.


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