How to deal with the new rare earth export pressure?

Weiqi Ning said the outcome of trade disputes has long been expected to insiders , the corporate level also has taken steps to advance the impact of indigestion , rare and storage policies at the national level will further enable enterprises out of this predicament . "However, given China's rare earth industry, which sounded the alarm , industrial upgrading, optimization and adjustment , mergers and acquisitions, technology development , and many other core work urgently accelerated . "

If the export duties and export quotas really canceled , how to maintain China's rare earth products in the international market competitiveness ? How to change the unfavorable situation of rare earth "cabbage price" outlet ? Analysts believe that to solve these problems , you need to improve purchasing and storage policies to promote and further the implementation of the Group's integrated research and development work .

Recently, the U.S. , EU, Japan v. China's rare earth export quotas for trade disputes to let China 's rare earth industry once again feel the impending pressure - in accordance with the rules of the World Trade Organization if China is no longer appeal or final results unchanged China will be the elimination of export taxes , export quotas and other management measures.

For a long time , rare earth deep processing industry in the field of short board is pain in my heart for all enterprises : China claims 90 percent of the global supply of rare earth resources, but the main exports are mostly low value-added semi-finished products , to buy from Europe and other countries back , it is increasing the price of a few hundred deep processing products. If the export duties and export quotas really canceled , how to maintain China's rare earth products in the international market competitiveness ? How to change the unfavorable situation of rare earth "cabbage price" outlet ?

"cabbage price " come from

"My colored net" Rare researcher Li Qing in an interview with reporters, said the International Business Daily , Chinese exports of rare earth products at low prices and industrial structure scattered, chaotic, not unrelated . "Domestic business concentration is very low , a vicious cycle can lead to price competition brought about by increasingly lower quote . " Li Qing said," In addition, the illegal trade of rare earth still exist on the market , were unable to be resolved from the roots. "

In addition, the structural supply and demand of rare earth industry also increased the degree of rare earth prices " runaway" . Enterprises would demand certain kinds of distribution points where large and over-exploitation , causing other partition surplus.

" Differences rare earth mineral content between the various distribution points are often large. For example, a rare earth mine in the light rare earth lanthanum and cerium serious excess , praseodymium , neodymium and dysprosium there is a big gap. Although a large number of mining praseodymium , neodymium and dysprosium can alleviate to some extent, supply and demand, but the extent of causing a surplus of other rare earth elements to deepen , which dragged down the overall price of rare earths . " Li Qing said.

Investment Advisor in the metallurgical industry researcher Weiqi Ning said that in addition to the lack of a unified , strong industrial policy, leading to Luancai illegal mining , human smuggling and other bad behavior will be dragged into a vicious cycle pattern of the entire industry , the domestic rare earth enterprises in the science and technology research and development, technology research , etc. insufficient emphasis areas are also an important reason for China's rare earth industry dragged down the global value chain to climb .

" China's rare earth deep processing of a small number of products , companies merely to puerile profit model, and thus missed the best opportunity occupied the commanding heights of industry . " Weiqi Ning said . To solve these problems, countries need to further improve the implementation of the R & D work in the purchasing and storage policies to promote the integration of the group simultaneously.

Learn to adapt to the new situation and new rules

Insiders said that to ensure that China occupies a favorable position in international trade , and enhance China 's rare earth industry in the international market competitiveness, we must adapt to the rules of the game under the new situation .

As early as a few years ago, China 's rare earth industry consolidation began , intended to build the whole industry chain of rare earth and really change the status of the rare earth scattered over the years . 2014 , the State Council approved the formation of a national program of work of large rare earth group , a clear north Steel ( Group ) Corporation, China Minmetals , Chinalco , Ganzhou Rare Earth , Guangdong and Xiamen Tungsten Rare were led to further promote mergers and acquisitions , formation of large rare earth enterprise Group .

Li Qing said that if the formation of the six Group , the country is expected to create a new pricing mechanism for rare earths , foreign customers want to buy Chinese products , you can go to negotiate and sign a long-term agreement on behalf of several large companies throughout the domestic industry , and the current " a meeting of one price "approach compared to , of course, to get a bigger say in the international market .

In addition, Li Qing suggested the rare earth industry can also try new financial instruments . "At present, Baotou and Ganzhou Rare Earth have set up exchanges . Should support these exchanges, if the futures and spot trading volume on the big upgrade these platforms , we may be done by the average exchange settlement price . These new international business model are worth exploring. "

Enhance the degree of integration also allows the industry to deal with WTO requirements liberalization of export quotas to add some " clout ." The industry believes that liberalization of China's export quota of rare earth industry competition will become more intense , but not for the industry to produce " devastating " impact. "In the past companies scramble for more export quotas for foreign exchange , if the six group formed , will bear some responsibility for the development of the industry . " Li Qing said.

Weiqi Ning said the outcome of trade disputes has long been expected to insiders , the corporate level also has taken steps to advance the impact of indigestion , rare and storage policies at the national level will further enable enterprises out of this predicament . "However, given China's rare earth industry, which sounded the alarm , industrial upgrading, optimization and adjustment , mergers and acquisitions, technology development , and many other core work urgently accelerated . "


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