Chinese rare earth prices but the monopoly position has not wavered

China 's long-term monopoly of the world's rare earth production . However , in recent years , appears with the relevant dispute Beijing 's new trend : Western companies turn to alternatives and other origin , rare earth prices fell .

On the global high-tech industry, is a rare precious raw materials. Computer chips , motors, wind power installations or internet phone, everywhere with their shadow. However , over the years , around this particular material , continues to occur in a fierce controversy. 90% of rare earth production in China . However , the country's rare earth export restrictions , particularly so in Europe , including Germany , the United States, Japanese companies have been seriously affected. Although Western countries to get in a trade dispute which caused a stage victory - the WTO arbitration court ruled China February exports of rare earth restrictions violate free trade rules - but the problem solved itself thus far .

Mercator Institute of Chinese Studies , headquartered in Berlin (MERICS) Expert Verbeek (JostWübbeke) , believes that " the impact of the WTO ruling played a little ." Because the ruling does not take effect immediately. China also appealed. Verbeek in an interview with Deutsche Presse-Agentur interview that was canceled before export restrictions , Beijing still a full -year transitional period ; while the Chinese side will implement the arbitration decision , the number is still uncertain .

China's own industry requires a lot of rare earths. Meanwhile, the Beijing government is not willing to excessive consumption of domestic rare earth resources, to avoid over- exploitation and processing hazardous pollution of the environment . Therefore , the amount of rare earth mining dropped . Verbeek points out , it is not clear whether China will continue to supply the world market as well as the extent .

Prices plunged

Nevertheless , the international market, already rare earth prices fell . Many companies now looking for alternatives to the high-tech metal ores . Verbeek noted that foreign consumers are increasingly using alternative raw materials and reducing the rare earth applications. Moreover , the world economic crisis, demand for rare earths also fell . Also, although the Beijing central government restrictions , many small local producers still disregard regulations, continue to produce , and thus lower prices . Verbeek believes that Beijing tried to make rare earth prices remain high long-term plan has definitely failed. Although China has the largest global rare earth reserves , but other countries such as the United States and Russia have huge storage, fully able to meet domestic demand. In addition , Japan, Europe , America and other countries and regions, the high-end companies to find alternatives for certain rare earth products, and more efficient recycling of rare earth materials . Of course, this strategy also has limits, at least so far, is still rare in many technical areas indispensable .

Forces

On the other hand , as prices decline , compared to a change of power relations . 2011 , certain categories of rare earth prices reached the highest point , which makes the exploitation of rare earth in the more difficult areas have become attractive. For example , discontinued eight years later, California " Yamaguchi (MountainPass)" mine to resume production at the end of 2010 ; in Malaysia last year, has started processing rare earths from Australia.

However, the German Federal Bureau of Geology and Raw Materials (BGR) recently pointed out that today , in California and Malaysia , are no longer talking about someone once exciting " to expand production capacity ," the prospect of it.

Mercator Institute expert on China Verbeek stressed that China dominant position in the field of rare earth has its historical reasons. For a long period of time, Beijing to low prices this high-tech metal ore mining , lead mining in the rest of the world is unable to be made . The industrial countries underestimate the long-term strategic value and rare earths . According to his statement that : " Consumers have long industrial countries lying at ease on China 's cheap . "

3 years ago, rare earth prices suddenly rise, spurred the international community to find a large-scale rare earth mine . According to federal figures provided by the Bureau of Geology and raw materials , has so far discovered 440 new multiple rare earth mine . The agency said in a report that the new mines , many of the great potential of mineral resources as well as numerous alternatives unexpected cause rare earth prices fell sharply .

But even so, China 's rare earth monopoly is far from shaken. In particular, the so-called heavy rare so far still only Chinese mining and heavy rare earths vital importance for power mobility, wind power installations and energy-efficient light bulbs. Federal Bureau of Geology and raw believes that the supply of heavy rare earths are still threatened.


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