"Abnormal rare earth prices soared in 2011, bringing a huge profit margins; together for the protection of the environment and the exploitation of rare earth resources, China's rare earth industry to increase efforts to adjust supply and demand of rare earth products momentary imbalance emerged in this environment, foreign a large number of rare earth projects launched. "Inner Mongolia Baotou Steel Rare Earth Hi-Tech Co., general manager Zhang said.

In the 1990s, China's rare earth products due to low prices, high quality and quickly occupied the advantage of the international market. In 1998, the U.S. company's rare earth extraction of molybdenum separation line discontinued in 2002 its Mountain Pass mine to stop mining. In 2004, India's rare earth plant shutdown. All of a sudden, the rare earth market is completely become "China Times", over the years China supports about 90% of global demand for rare earths.

This year, the Mountain Pass rare earth plant as the first phase of expansion, and the Australian Lynas Corporation WA concentrator expansion construction is completed the second phase of the light rare earths diversified supply has begun to take shape.

China's future market share in the number of shares? China Rare Earth Industry Association, Marong Zhang and Zhang's "personal view", there is not a small difference. Marong Zhang said the number of domestic and foreign enterprises through cost analysis shows that China's light rare earth mining, smelting and separation in the global advantage "is not obvious." Zhang believes that the domestic rare earth mine in the distribution points and grade on the "little gap", with the drop in the price of rare earth, because China's resources and cost advantages, rare earth supply is likely to return to the "China Times."

Partition means rock or mineral content of rare earth elements in the proportion between. Rare has "the mother of new material," said the foreign restart rare earth projects are mostly light rare earth project, the heavy rare earth in China "specialty."

In fact, affect the future pattern of light rare earth supply many factors, price trends, national policies will be for the body mass is not the industry to bring shock. Invariably, in between commercial interests and the national strategy, China's rare earth industry, the game never stops.

"If in 2011 the stock market last longer some more projects abroad early on. ...... Now the price, foreign to continue to overweight (capacity), or will first consider what is."

"If in 2011 the stock market last longer some more projects abroad early on." The expert said, "Now the price abroad to continue to overweight (capacity), or will first consider what is."

Since last year, the global economic slowdown, also downstream rare earth industry downturn, coupled with soaring prices of rare earth in 2011 really made application of rare earth enterprises to eat boring boxing, rare earth prices has basically come down to the level of the initial price.

"June 2011 is the highest point of rare-earth prices, the profit level reached the highest value product now withering profit margins, the current price level for Chinese enterprises, there is a certain profit margin, for foreign rare earth project is difficult for the Relay. "Zhang said some foreign in the exploration phase of the project most difficult, a lot of projects to China looking for partners.

Zhang analysis, due to oversupply of light rare earth products, especially products of lanthanum and cerium, in the current price trend, the large-scale expansion will further squeeze profit margins.

Cost and price of course is to determine the main factors of production, but experts have warned that the rare earth industry, and foreign difference is that Chinese enterprises is not enough emphasis on sustainable development.

"Everybody says that some foreign ore before discontinued because of cost competition, but China, environmental costs far higher than China, etc. But I think, if not profitable, not mine so many years ago, after all, is not environmentally friendly from 2002 (Note: Mans Pass mine shut down in 2002) began. "he said.

"Since the (Chinese) have cheap rare earth, why do I still mined? Keep for future re-sell it more expensive!" He said, "like rare earths such resources, will certainly keep price increases because it is not the same and iron , are non-renewable, recycling is only part not 100% recycled. "

Continue to join the ranks of rare earth industry, the company will intensify competition in the market worldwide, "the world's rare earth price war is inevitable."

June 2012, the State Council Information Office published entitled "China's rare earth conditions and policies," the White Paper: "23% of China's rare earth resources to bear more than 90% of the world market supply." Meaning behind this statement is that China at the same time in the development of rare earth industry, the need to protect resources and the environment to the position of the premise.

When the project started abroad increased supply, obviously, the entrepreneur himself.

Zhang believes that continue to join the ranks of the rare earth industry, the company will intensify competition in the market worldwide, "the world's rare earth price war is inevitable."

According to Ma Rongzhang said that many rare earth companies to trade associations reflect changes in domestic and foreign markets, and according to the current characteristics of rare earth reserves, the government should take in the export quotas "severity are different" approach, focusing on control of heavy rare earth exports gradually liberalized LREE Production mandatory plan, the phasing out of lanthanum, cerium export quotas, to encourage a large number of export lanthanum, cerium and other surplus elements occupy the international market.

The experts believe that, from the current market situation, "the severity are different" there is a certain necessity. But his analysis, the current national level considerations on the rare earth industry, or to a whole industry to the layout, "has not yet reached the severity of this step are different, not to mention the press element to points."

In addition, he judged, the state policy on rare earths are available in 2011 found in the text of the 12th, "In the future policy is also difficult to break this range."

No. 12 in May 2011 under the hair, called the "State Council on promoting the sustained and healthy development of rare earth industry, a number of opinions" (Guo Fa [2011] on the 12th). This programmatic document to finalize the development of the industry goal in 1-2 years' time, to establish a standardized and orderly development of rare earth resources, smelting separation and market order flow, the basic formation of large-scale enterprises as the leading rare earth industry structure; addition, the The paper suggests that improving RE mandatory production plan management, strengthen the rare earth export management.

For export quota scheme, the experts also believe that for a long period of time will still be implemented. He repeatedly stressed that the entire world, the light rare earth elements is definitely not scarcity, but the heavy rare earth is a real rarity.

"If we do not enforce the quota system continues, it is likely China's rare earth mining finished soon. Etc. mining finished, you will find, and also expensive to buy from abroad, as long as you do not plan to implement the quota, this will happen in our country." This Experts said, "but how many future quotas may be adjusted, in addition, now mine, separate link has mandatory plan, and they will probably only caught mine, mine, after all, is the source of the country's resources."


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