China Rare Earth supplier assessment and the line and losing the case and see

Looking back at the March event rare earth market , it is inevitable to mention the international market due to the recent lawsuit Rare widely discussed , WTO ultimately judged against China , most market participants expressed outrage this result , consider the WTO to settle a lawsuit unfair. There are businesses on the rare earth market outlook expressed concern that after the release of rare earth rare earth export prices could face fell sharply . Positive attitude toward businesses that even if export quotas , when the government will be able to come up with other policies , since the final decision is not out , and see it and the line and

In a heated discussion outside the industry , there are many people comment perceptual bias , that in order to prevent the United States , Japan and Europe to succeed, China Rare Earth should direct substantial price increases, some also are made ​​rational thinking , such as the control of resources from the source strengthen the industry, improve pricing, increased resource taxes and so on. As Chinese people or the Chinese government Rare how to deal with this incident , it seems that everyone knows how to do it , but it seems that they are very difficult and this is after all the things surmount domestic rare earth industry accomplishing a mind to do great things , but mention to mind, after all, insiders feel that involves the distribution of benefits , the current situation , there are still difficult.

Two days , the downstream magnetic motor scrap merchants are also special attention to this case , some of the downstream businesses that, although China is losing mildly entertaining to Chinese rare earth market is not good news, but rare lost, the abolition of quotas , China rare earth exports will increase, rare earths prices will rise , and that scrap prices will rise magnetic motor . Normalized hope rose up hope , because of the increased exports of rare earth prices will rise rigorous thinking is not enough . Not to mention the United States and Japan accused China is able to make a large number of low-priced Chinese exports of rare earths.

If the final is China losing ( the current situation is a high probability event ) , China had to adjust their export control policies , adjust the direction is likely to be the abolition of quotas , reduction or elimination of tariffs . Thus in the present case did not change the overall outlook of the industry , because there is no quota restrictions , the target will be more foreign companies look to increase market competition. Originally extreme pressure on domestic prices higher foreign companies the right to speak , the domestic enterprises more passive , so the supplier may be further disadvantaged directly reflects the decline in prices . Another problem , if there is domestic rare earth prices to fall ? The current rare earth prices compared with last year is still a lot higher than the lowest level , and with rare earth export restrictions compared to the previous price , higher more . Praseodymium , neodymium oxide , for example, the first quarter of 2005 to the northern region Baotou rare earth neodymium oxide, praseodymium enterprise reference price is 60,000 yuan / ton. June 2010 praseodymium , neodymium more than 180,000 a ton , late June 2011 , Ganzhou Rare Earth Mining Company oxide, praseodymium , neodymium Quote 1.2 million yuan / ton. 2013 bottom price of neodymium oxide, praseodymium 250,000 yuan / tons , neodymium oxide, praseodymium prices currently at around 31.5-32.5 yuan / ton, past changes in export policies on market prices had a tremendous impact .

Only this year , short-term needs of a large outbreak led to the possibility of rare earth prices is unlikely. If domestic prices continue to fall, international demand may increase , no quotas of rare earth exports could further substantial growth , which along with the United States and Japan vows. Instead, if rare earth prices rising after the United States , Japan and Europe demands fail, they outweigh the benefits , or will find another reason to accuse us.

The industry had a rare earth plant managers to express their views on this case concluded , "Overall, the future prices of rare earth market opportunity is relatively large , because the government wants to control the market price must be a way , a few domestic manufacturers rose alone Price does not work, because the domestic stock of the situation a lot of individuals , will have an impact on prices . "

From the government level to do something really enough . Government can strengthen market management, control individual sources, continue to rectify the illegal exploitation of production management , control mandatory production plans , improve resource taxes , speed the pace of consolidation, increased pricing power of large enterprises the right to speak , to strengthen the influence of the exchange , and so on .

The above method to influence the market supply and demand , and promote up rare earth prices is the ideal way to normal , but unsustainable prices forced the government level , although the United States , Japan and Europe to combat , but will also have a negative impact on the domestic industry chain. Assuming the short-term production technology without a major change in the price of the most immediate result is lower costs will increase domestic and international markets, especially the United States , Japan and other countries, the development of technology can take to reduce the amount of rare earth temporarily circumvent this problem ( in the past Japan has been struggling a year or two to do ) . Increased downstream costs of the domestic market , the application will be hit the market . Paul upstream but not downstream pressure is the result of the government wants to see. From the integration point of view, to get the highest environmental and economic benefits , making decisions endowment worth considering .

How to act and protect resources and economic development ? WTO agree that the motivation we need to protect scarce natural resources within the international rules, but we also believe that controlling domestic production and consumption , if indeed the control of domestic production and consumption , the domestic downstream industry must improve technological competitiveness , improve the utilization of rare earth , while the government also needs to give appropriate subsidies. Thinking from the protection of scarce resources , we really should reduce the dependence on rare earth materials , both to reduce costs, but also to protect rare earth resources. Upstream enterprises, demand reduction , the most direct impact on business and personal income . At this time the government should strengthen the national government level purchases , reserve resources , or give financial subsidies, rather than attempting to benefit from the enterprise or by rare earth there to develop the local economy. To really government said, in order to protect rare earth resources and set export quotas ( the last two years did not run , did not play a protective role ) , that protect the environment , use less resources is the most to do. China has been talking again after the Third Plenary Session of the market economy , but also the management and supervision of the government , but the scarce resources such as rare earth , if you really want a comprehensive market-oriented , market-oriented operation is still limited , it is worth thinking.

Over the past few years, the price of rare earth contrast to current demands, rare earth prices continue downward long way to go , but prices are way more formidable.


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