Refraction of five rare earth export industry long-standing dispute

Overcapacity high environmental pollution and wasteful private mining industry concentration is low and more weak downstream industries

World Trade Organization (WTO) announced the United States , European Union, Japan v. China rare earths , tungsten, molybdenum export management measures related to the case of the panel report , ruled that the export control measures Chinese products involved violations.

In accordance with WTO rules , China is still 60 days to appeal , if the final result is difficult to change , for the rare earths , tungsten, molybdenum export quota management system of three raw materials may be canceled.

In the industry view , the rare earth export quota dispute , although full of differences and conflicts of national interests , but also fully exposed the long-standing China's rare earth industry .

Export quota policy intention

There are 17 kinds of rare earth elements , generally divided into mild , moderate and severe categories. Which lanthanum, cerium and other light metal , widely used in metallurgy, textiles, ceramics , glass, magnetic materials and other civilian areas ; yttrium, dysprosium, terbium and other heavy rare earth metals , laser cutting-edge industry , nuclear industry, superconductivity and other necessary , is a valuable strategic resource , known as the "industrial vitamins ."
In 2012, the State Council Information Office published "China 's rare earth conditions and policies ," White Paper , China's rare earth reserves account for about 23% of the world's total reserves. However, China has undertaken more than 90% of rare earth supply on the world market , was even more than 97% .

As the first rare earth producer and exporter country, but the development of China's rare earth market was chaotic . Overcapacity in the domestic rare earth mining is very serious , serious waste of resources and ecological damage. Disorderly competition makes the "industrial gold" has sold rare earth became " cabbage price ." And with this in stark contrast to the United States, Australia and other countries extremely rare earth resources , but their limitations and stop the exploitation of rare earth in favor of imports from China .

Zhang Anwen , deputy secretary general of China Society of Rare Earths frankly , complaints and WTO ruling against China's rare earth export quota system is " beyond the expected, makes sense ."

Back in 2001 the accession negotiations for accession to the WTO, China as promised , within the prescribed period canceled out most of the products ( feed ) export quota , the Commerce Department data show that the public in 2009 between 2001-2006 , China's export volume of rare earth products maintained at between 40,000 to 80,000 tons . In order to further standardize the development of rare earth industry , in 2009 , the State Ministry to develop "special Rare Earth Industry Development Plan ( 2009-2015 ) ", clearly 2009-2015 annual export of rare earth no more than 35,000 tons . 2010 , fell to 30,258 tons of export quotas beginning .

Zhang Anwen said to heavy rare earth mining in southern China as an example: In order to get 10,000 tons of heavy rare earth oxides, 100 square kilometers of vegetation will result in the destruction consideration shocking. " Our pay and unequal access to a serious imbalance . " Zhang Anwen respect, protection of resources and the environment and regulate industrial order , it is the policy of our government to implement protective measures against the rare earth industry in mind.
"Although China's rare earth export quota system eventually sentenced violations, but after a full defense and the burden of proof , WTO Expert Group endorsed the policy objective for China is still protecting the environment, resources and sustainable development needs , in line with the special nature of WTO rules . " Zhang Anwen said .

industry long-standing "cabbage price" behind

A series of policy measures to effectively regulate the market of China's rare earth industry . China Rare Earth has changed in the international market, " cabbage price of gold to sell ," the status quo. But for China's cheap rare earth consumption habits of foreign companies, whose interests suffer.

Earlier, assistant to the president of China Minmetals Mr Wang said in an interview that in the past China's rare earth industry are selling raw materials, do not pay attention to the back-end applications. 1 dollar of rare earth materials , we roughing up to sell 10 yuan , 20 yuan , to the U.S. and Europe made ​​product, we will spend 1,000 yuan to buy it back.

" Why should we sell cheaper to buy when they so expensive ? " Zhang Anwen frankly, behind the kinds of rare earth industrial development in many long-standing presence .
Zhang Anwen said China 's rare earth industry , is one of the few industries with certain international competitiveness . In support of the state policy , entirely on its own resources and technical capabilities to achieve from rare earth mining , smelting, to environmental protection, good development .

However, China is a " rare big country" , they are not "rare earth power ." Rare earth industry itself has a very prominent issue, focus on performance in five areas . First, the rare earth mining , smelting production overcapacity serious , rare earth oxides capacity and yield ratio ( ie, the excess factor ) is about 3.2 , much higher than steel, cement overcapacity excess coefficient industry ; Second, high prices and Gregory under driven by mining and smelting separation, environmental pollution and ecological damage costly ; third , private mining digging , serious cases of smuggling of rare earth , rare earth prices under long-term impact of non- market factors ; fourth , industry concentration is not enough ; fifth , downstream of China's rare earth industry development is weak , the situation in the " nuclear high base " and the kinds of applications of rare earth materials more serious .

Rare earth prices Governance secure first

If the complainant is still not ideal situation , China will have to amend the related export restrictions , which will have a greater impact on the rare earth industry ?

" RE game depends largely on the price . " Zhang Anwen said that in the short term, the rare earth market may form a certain degree of price volatility . The large fluctuations in the price of rare earth products for the downstream industry chain development is not the gospel.

"fear of rare earth price spike . " Shenzhen Tianli and Magnetic Industry Co., Ltd. Marketing Department is responsible for people , said the company set up in Ganzhou NdFeB production base, in rare metals processing, production of NdFeB, magnetic buttons , and other magnetic products. 2011 to 2012, the roller coaster of rare earth raw material price changes , so that the whole industry enterprises to withstand a lot of pressure . As the rare earth raw materials skyrocketing , even smaller than the profits of deep processing of raw materials mining profits. Rare earth materials soaring overnight over a lot of people are doing magnetic materials, has nothing to do with the rare people who started in this industry , and now serious excess capacity many companies have cut production and protect the price . The demand side of enterprises turn to look for other alternative materials , magnetic materials applications hit the market .

" Rare earth prices , the first rule secure . " Zhang Anwen said that industrial development is the most taboo volatility in raw material prices , the further development of rare earth downstream industries, to promote the application of rare earth material harm than benefit . Should establish a relatively stable price formation mechanism of rare earth products , to provide a stable environment for the enterprise market enterprises downstream applications .
2013 onwards, China Rare Earth Industry Association has released the rare earth industry price index in the form of the price range from the industry 's 25 most representative sample of companies forming daily trading price statistics . Maintenance industry run by the price index , the impact of inhibiting capital speculation .

Zhang Anwen also reminded enterprises, foreign rare earth development and utilization of international environmental concern. United States , Australia, India and Russia have a wealth of rare earth resources, in 2013 , Greenland abolished the ban on uranium mining and rare earth mine , allowing domestic and foreign mining companies exploiting mineral resources in its territory in the Arctic . This means that in the future , in the world or the formation of diversified international rare earth supply system.


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