Recently, foreign media constantly reports, the case against China's rare earth , especially the Western media loud cheers : This is a major victory achieved in the United States, Europe, Japan and in the case of China 's rare earths . Since March 26, 2014 , World Trade Organization (WTO) panel report released ruled export tariffs on Chinese rare earths, tungsten, molybdenum related products taken quota management measures violate WTO regulations. EU Trade Commissioner De Gucht said: "The ruling shows that no country can hoard of rare earth from global markets, and to allow other WTO members to pay . "This means that China Rare preliminary case against the coming few months time there may be appeals . But I believe that the possibility of the case in favor of small, unless there is a miracle .

So why is so dear to America, Europe and rare ? Why China is a big country of rare earth , but not the right to speak , so lost in this case ?

Now we all know , is not only an important rare earth mineral resources , but also has important technological and military strategic significance , it is indispensable for the development of high-tech strategic resources , from smart phones to missile guidance are inseparable from the & ldquo ; industrial vitamins . " Thus , the United States , Japan and Europe so much importance to the rare earth is not unfounded . In recent years, Japan has bought a lot of the earth, not in a hurry to use, but will be kept on the seabed , to respond to future energy required . The United States is second only to China 's second largest rare earth resources in the country , but the United States does not adopt the reservoir , take not only the mining exploration strategy . According to statistics, the United States reserves of 13 million tons of rare earth , accounting for 13% of the world's rare earth reserves , while the output is zero , the necessary resources are mainly imported from China Rare Earth . Over the years, China has accounted for only 23 percent of the world's total reserves of rare earth reserve of 95% of the world supply of rare earth production , not only low prices was like " gold selling price of potatoes ," but due to the low content of mining technology , mining blind , resulting in huge domestic environmental costs. When China began to realize that the problem is serious restrictions of rare earth exports , the United States and Japan are extremely unhappy to find plenty of evidence to prosecute China , and finally as they wish, making China lost in a rare case .

It should be said that China lost quite useless in rare cases, do not lose heart very willing . On the one hand , indeed America, Europe and the leading world trade talks , in its favor ; on the other hand , we may have some problems , so people grabbed the handle.

So, in the end lost the lawsuit China where is it ? I believe that we have for the time being unfair foreign factors aside from the domestic look for reasons , largely following aspects :

First, China does not exercise effective control from the source. In China, for a long period of time due to excessive rare earth business entities , resulting in an oversupply situation , have low prices and can not control pricing between manufacturers, both domestic and foreign prices appear foreign than domestic prices , the formation of the so-called dumping behavior. But in fact , a lot of profits but ceded to others , the result is still cold outside capitalists got benefits .

Second , local governments pursue GDP performance, adopting a " fast flow of water " measures. Since a long time, the performance evaluation of local government officials primarily to measure the level of GDP , but by mid- assessment, making local governments can take " fast flow of water " measures , without considering the costs and environmental pollution control costs. Relatively easy exploitation of rare earth resources , but also to make money, no doubt a " fast flow of water ," the victim.

Third, the production and supply of domestic inconsistent. Though the integration of rare earth resources in China factory , reducing the phenomenon of chaos mining , export restrictions , but did not yield substantial reduction in domestic production of rare earth products are more in domestic supply is greater , while exports less . The problem is that after some domestic manufacturers in domestic prices for rare earth products , hands high sales in the international market . So give a wrong impression abroad , Chinese export restrictions only for the United States and Japan and other foreign capital , it is unfair implicit trade. This is also one of the losing cause.

Fourth, China lacks versed in international trade rules and negotiations senior personnel. If China can be familiar with WTO and other international trade rules , proficient in foreign languages ​​and negotiation skills , then we can also lose less experienced this frustration !

In order to avoid damage suffered major international trade friction brought to China must enhance learning , develop more advanced economic management personnel, especially versed in international trade rules and negotiations of senior personnel , so perhaps in the international negotiations will not ignorant and passive ; change or cancel the current performance evaluation mechanism , to build a long-term evaluation mechanism green ; increase the integration of rare earth resources, improve industrial concentration ; strictly limited domestic rare earth production and consumption , we must ensure that domestic rare earth production in line with the export standards abroad avoid giving others a handle .


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China supplies more than 90 percent of the world's rare earth resources , but because there is no obtain rare earth pricing , selling resources into "cabbage price ."

This imbalance , so that our country faced up to the regulation of rare earth industry . Implementation of rare earth quota system is based on the protection of the environment and resource considerations , a control implemented in the export sector .

Antaike rare earth market research analyst Chen Huan analysis, said the elimination of export management measures will not have much impact on China's rare earth industry itself , the real impact will be China's rare earth deep processing and application aspects .

Mr Wang 's remarks earlier interview , revealed the rare earth industry in the short-board processing areas: the dollar 's rare earth materials , we roughing up to sell 10 yuan , 20 yuan , to the U.S. and Europe made ​​products, we will spend 1000 yuan to buy it back.

April 2 , Inner Mongolia , a rare corporate executives , said, " Our way is not that rare earth industry consolidation, but how deep into the rough machining . "

At present , China's rare earth raw materials and processing industry remained roughly three bases and two north-south pattern of production systems , with the implementation of national policy , there is a further focus on the trend . However, according to the Ministry of Industrial Research Institute CCID director袁开洪materials research , the three main bases for the production base , its main products are mostly raw and rough in the primary stage of product development and other downstream applications that slow development .

In NdFeB , for example, it is divided into two kinds of NdFeB sintered NdFeB and bonded . Wherein the bonded magnets are neodymium NdFeB alloy powder , epoxy resin , plastic and other additives, such mixed binder , using a molding method such as compression molding , calender molding, injection molding and is prepared made of composite permanent magnet.

Galaxy magnet there had projects , namely through the use of bonded NdFeB magnets, praseodymium , neodymium alloy available annually about 1,200 tons , can greatly reduce the cost of electricity . However, due to the volatility of rare earth price " roller coaster " type , have a significant impact on the bonded NdFeB industry , this project also because the user can not accept early mortality .

"In the rare earth prices skyrocketing , even as selling products directly sell resources. " aforementioned corporate executives say , by the influence of rare earth spike , rare earth downstream processing sectors hard hit .

In the eyes of many industry people , China 's rare earth deep processing level varies greatly, NdFeB industry is in a leading position in many respects , but in rare profits , driven by raw commodity sectors expanding , but relatively sharp contraction in downstream applications . " Not only is the fight of faith , as well as reputation, up to now no fully recovered . "

Another rare earth deep processing of distress " bothering " is caused by a duplication of serious excess capacity .

袁开洪said that although China's rare earth permanent magnet production ranked first in the world , but the market share of high-performance permanent magnet materials is less than 10 %. Many provinces , even without the resources and core technology , the new project is still a lot of construction NdFeB , resulting in a more serious homogenization phenomenon vicious competition .

"We hey some companies are a division of labor , and now every place in the enclosure, do engage in NdFeB Rare Earth Zone , a dozen things turn out two million tons, which is the largest repeated construction waste . " rare earth enterprises had said .

In fact , there is not just part of the rare earth separation overcapacity , luminescent materials , there are also a lot of excess capacity. Among them, the 2011 rare earth luminescent materials production capacity of 6,000 tons, but after only a year on more than 20,000 tons of production capacity , a lot of new capacity projects are launched from 4,000 tons.

In addition, has made it clear to fade upstream control over the future development strategy of Rare-Earth also focus on developing applications of rare earth materials , rare earth materials to expand the field of high-end applications , application of technology to enhance the level of rare earth , rare earth products to increase the added value . Baogang Group even promised to support the focus on the development of rare earth smelting Baotou Steel Rare Earth , separation, materials and applications, Baotou Steel Rare-Earth Group for the rare earth smelting , separation and integration party applications business.

The real problem is that the current domestic rare earth processing enterprises concentrated in NdFeB , luminescent materials and NiMH batteries three industries , high-tech industries rarely dabbled in other applications . Rare earth deep processing industry homogeneity, has seriously hampered the development of rare-earth applications.

" China 's rare earth industry chain is very short , the real high value-added chain is the end product , but all these years we still sell primary products of rare earth , which in turn also to thousands of times the price to buy deep- processed products from abroad . " preceding business people said.

He believes the key to the rare earth deep-processing industry is to look at the application side , the current application link is not up for three main reasons : First, alternative materials for the market to seize the high-end market is difficult technical issues , then there are sluggish exports , domestic consumption has always been short board ; also lanthanum magnesium nickel- hydrogen storage battery domestic industrial enterprises there are problems .


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According to media reports, the 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 Chinese products involved export tariffs , export quotas and export quota management and distribution measures do not comply with the relevant WTO rules and China 's WTO commitments . The Chinese Ministry of Commerce said it is assessing the report panel decisions and emphasized the Chinese government still has the right to appeal to the WTO .

Existing rare earth export policy faces adjustment

Taking into account the period of about a year to protest the buffer , we may judge from 2015 , China's rare earth export policy will need to make adjustments , including export quotas and export tariffs and other policies.

We estimate the possible policy adjustments include :

1 , export quotas ;

2 , export tariffs ( the vast majority of China's exports of rare earth products currently impose a 25% export duty due to losing WTO , tariff policy after 2015 may be adjusted to 10%).

Forced industry may reserve, integration policies speed

Under the WTO against the background , we expect the Chinese government to take urgent facing the market means to replace the existing export quotas , tariffs and other means of administration of the darker color of rare earth resources in order to control the pressure , we expect the government will likely accelerate the integration of rare earth industry process , but also will put the appropriate policies in other industries ( such as purchasing and storage , hitting , etc. ) in order to cope with the negative impact of the WTO against the industry brings .

This marks the May 2011 State Department "Several Opinions on Promoting the sustainable and healthy development of rare earth industry ," presented in the rare earth industry, " 1 +3" officially becomes the current pattern of "1 +5" pattern. With the advancement of substantive consolidation , the rare earth industry, the new order is expected to make an important step . At the same time , we expect a new round of anti- rare earth industry , purchasing and storage policy may also start to address the negative impact of the WTO against the industry brings .

Concerned about the rare earth industry consolidation process

We judge this event will lead to market expectations or rare earth industry policy ( consolidation, purchasing and storage , hitting , etc. ) appear speed , proposes a focus on the rare earth industry consolidation process. But the long-term trend is still weak current industry supply and demand depends on improving relations .


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Deserted because of the rare earth market demand , turnover remained thin. Currently , the market is bullish mentality after the Ching Ming Festival, the traditional peak season due to enhanced , but the actual buying is limited, low steady-based rare-earth prices .

Praseodymium oxide mainstream manufacturers tax price 570,000-580,000 yuan / ton. Neodymium oxide 310,000-320,000 yuan / ton.

Dysprosium oxide mainstream manufacturers tax 160-170 yuan / ton, dysprosium iron mainstream manufacturers tax price 165-175 yuan / ton.

Lanthanum oxide manufacturers tax price 21,000-22,000 yuan / ton. Cerium oxide mainstream manufacturers tax price 21,000-22,000 yuan / ton.

Neodymium oxide, praseodymium mainstream manufacturers tax price 310,000-320,000 yuan / ton , praseodymium , neodymium metal mainstream manufacturers tax price 405,000-41,500 yuan / ton.

Fluorescent europium oxide mainstream manufacturers tax price 4,000-4,200 yuan / kg. Terbium oxide phosphor grade mainstream manufacturers tax price 3,000-3,200 yuan / kg.


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