China's rare earth dispute entered a new stage

Chinese long-term monopoly of global production of rare earths. However, in recent years, related to the dispute with Beijing has a new trend: Western companies turn to alternatives and other areas, rare earth prices decline.

For the global high-tech industry, rare earth is a kind of precious material. Computer chip, motor, wind power generation device or Internet mobile phone, all have their shadows. However, over the years, the special material, the ongoing fierce controversy. 90% of the rare earth in the China production. However, the country's export restrictions on rare earth, especially including Germany, Europe and the United States, Japan enterprises have been seriously affected. Although western countries have a stage victory, in trade disputes arising from — &mdash WTO arbitration court ruled last month Chinese limit of rare earth export violation of free trade rules, but the problem is far from; thereby addressed.

Headquarters is located in the study Chinese Mukato Institute in Berlin (MERICS) expert Verbeek (JostWü bbeke) think, “ influence WTO award the very small ”. Because, ruling would not take effect immediately. China also may appeal. Verbeek in an interview with the German news agency that forced the cancellation of export restrictions, in front, Beijing has nearly a year transition period; and whether China will implement the arbitration decision, is still uncertain.

China own industry needs a lot of rare earth. At the same time, the Beijing government is not willing to excessive consumption of domestic rare earth resources, avoid harmful mining and processing of excessive pollution of the environment. Therefore, rare earth mining loss. Verbeek pointed out, it is not clear, Chinese will continue to supply the world market as well as to what extent.

Prices fell

Nevertheless, the international market, prices have fallen. Many enterprises are now looking for the high technology of metal ore alternatives. Verbeek pointed out, foreign consumers increasingly use alternative raw materials, and reduces the application of rare earth. In addition, the world economic crisis also makes the demand to fall. Also, although Beijing's central government restrictions on many small, local producers are still regardless of the provisions, to continue production, and thus lower prices. Verbeek thinks, Beijing tried to make the rare earth prices remain high long-term plan must have failed. Although, China holds the world's largest rare earth reserves, but other America and Russia and other countries also have huge storage, fully able to meet domestic demand. In addition, Japan, Europe, America and other countries and regions of high-end enterprise to find alternatives to rare earths for certain products, and more efficient recycling of rare earth materials. Of course, this strategy also has the limit, at least, so far, rare earth is still indispensable in many technical fields.

Forces

On the other hand, as prices fall, change relation between power. In 2011, certain kinds of rare earth prices reached the highest point, which makes the difficult area exploitation of rare earth has become attractive. For example, discontinued 8 years later, USA California “ ” ore pass (MountainPass) at the end of 2010 production; in Malaysia, last year has started processing from Australian rare earth.

However, the German Federal Bureau of Geology and raw materials (BGR) recently pointed out, today, in California and Malaysia, have no one to talk about was exciting “ expand the production capacity of ” this prospect.

Mercator China Research Institute expert Verbeek stressed, has its historical reasons China dominant position in the field of rare earth. In very long period of time, Beijing to the low price of this high technology of metal ore mining, resulting in the rest of the world mining unable to map. While the industrial countries and long-term underestimate the strategic value of rare earth. According to his statement is: “ industrial country consumers long-term peace of mind lying on the China prices. ”

Suddenly 3 years ago rare earth prices rise, stimulated the mass in search of a rare earth ore international. According to the Federal Bureau of geological materials and digital, has discovered more than 440 rare earth ore. The agency said in a report, new mines, many potential minerals and beyond all expectations of many alternatives to rare earths prices fell.

But, even so, China rare-earth monopoly has not shaken. In particular, the heavy rare earth called is still only Chinese mining, and heavy rare earth is crucial for electric mobility, the wind power generation device and energy saving lighting has significance. That the Federal Bureau of Geology and raw materials, the heavy rare earth supply is still under threat.


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