Rare earth export quotas or canceled, excess capacity is the true risk
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- Category: Rare Earth News
- Published on Tuesday, 01 April 2014 16:35
- Written by HJF
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March 26 , WTO announced the United States, European Union, Japan against China rare earth, tungsten, molybdenum export management measures related to the case of the panel report , ruled that the export control measures Chinese products involved violations. This means that China 's export quota management system over the years , or will be forced to cancel.
Face is likely to be canceled rare earth export quota management system , China 's rare earth companies ready yet ?
" According to regulations, upon receipt of the expert group report , there is a right of appeal , the appellate body will make a ruling within three months, within 60 days, so now is not the final case , the expert group is currently being studied law to make analysis to decide whether to appeal. " Deputy Director of the Department of Treaty and Law Department of Commerce Yang Guohua said .
Once abolish restrictions of rare earth export quota management , release of rare earth supply , get the current quota of rare earth enterprises is bound to increase competition , China's rare earth will it return to the " loess price" touting the situation?
May increase competition for enterprises, rare earth products on various parameters indicators refinement requirements of different enterprises targeted products , in addition to even cancel the export quota constraint management system , as well as export qualification , product quality and other aspects , so customers not because of little interest to change the procurement object.
"Sheng and resources at the Ministry of Commerce issued the first batch of rare earth export quotas this year , access to more than 600 tons of export quotas , prices remained stable and the industry average . For effects may want to cancel the export quota management system of the enterprise , which depends on the specific customer relationships , not simply judge. "These Sheng and resources secretaries said.
In addition, he also said that the country 's rare earth industry in 2012 and 2013 are not completely finished using export quotas.
Statistics show that the total 2013 export quota of 24,000 tons of rare earth (equivalent to the physical volume of 31,000 tons ) , the annual quota of rare earth products actual physical volume of exports 22,900 tons , an increase of 36.3% , exports amounted $ 603 million .
Wikipedia information on the rare earth industry analyst Du Baichuan , told reporters that due to the recent downturn in the rare earth downstream demand , the export volume has been far below the actual export quotas, export quotas practical significance has little importance is gradually reduced.
Du Baichuan also said that the light rare earths worldwide are abundant, and more scarce heavy rare earth , Chinese light rare earth exports proper release is possible , should focus on the protection of the heavy rare earths . Moreover, even if forced to cancel the export quotas , customs can also increase the limit ; Meanwhile, the domestic regulation of rare earth enterprises have gradually improved, such as the current national authorities to implement the rare earth industry, invoices, certificates of rare earth mineral rights management and other measures.
Need to speed up the integration of rare earth
Whether the WTO ruling will be appealed , deputy secretary general of China Rare Earth Industry Association陈占恒said the reporter , is currently in the analysis phase of the panel report , comments , " In the absence of full interpretation, complete analysis, published not mature, but will soon be concluded . "
However, industry analysts believe that the possibility of changing the ruling is unlikely.
CPPCC National Committee, China Academy of Engineering , president of the China Rare Earth Industry Association Gan Yong early March , said in an interview , "and the WTO rare earths very grim situation facing lawsuit , WTO has given us the right to appeal , but from the results, there is almost a role in delaying the execution time . "
But the WTO panel report released the same day , the aluminum Rare Ltd. in Sichuan Liangshan , Sichuan Dechang proclaimed , Chinalco 's rare earth industry consolidation platform - China Rare Earth Rare led Leshan Sheng and RE shareholder Representative corporation , utilization of Mineral Resources Chinese Academy of Geological Sciences Institute , Institute of Rare Earth new Materials Co., Ltd., Sichuan Han Xin Mining development Co. , DeChangXian owned Assets Management Co. , Ltd. and other signed agreements.
Ministry of Industry and Information Technology Division inspectors raw materials , rare earth JiaYinSong Office on the day of the meeting , said Chinalco Sichuan State Council meeting clearly lead the integration of rare earth enterprises, RE integration and the formation of working group set up six large deviation must not be allowed rare premise enterprise group .
The real risk
"In fact, the rare earth industry is currently in oversupply situation , downstream demand has weakened rare earth , rare earth prices have been low, even if the elimination of export quota management system , companies bidding space is small, the worry is not the key to the bid . " Du Baichuan told reporters.
He said that the main problem is the rare earth smelting industry overcapacity and a separate set of mining, production, circulation , smuggling as one of the chain of black interests have not been eliminated , and the resulting decline in prices of rare earth products , rare serious business losses .
Reporter finishing discovered , in the rare earth group responsible for the integration of several major companies, its performance last year are not ideal. Rising Nonferrous which the reporting period, operating income of about 1.6 billion , down 32.77% : net loss of 109 million , up 365 percent fell sharply .
The report analyzes revenue up colored Rising rare earth and related products decreased by 802.71 million yuan , of which the rare earth industry revenue down by 365.46 million yuan , rare earth and related products trading business revenue decreased by 437.25 million yuan ( of which export revenue up reducing the 310.87 million yuan ) .
Baotou Steel Rare Earth last year while operating income decreased by 8.33% to 8.47 billion yuan , net profit also fell , edged down 0.11 percent year on year to 1.44 billion yuan ; Annual Sheng and resources in 2013 , the company net profit of about 146 million yuan last year , fell 5.24 percent .
Many industry insiders believe that the current problem is the price of rare earth industry downturn , weak demand , high inventories , due Luancailuanwa still exists , is difficult to count the number of specific stocks . But look at the typical price of rare earth products , such as the price of lanthanum oxide in 2011 more than 30,000 yuan a tonne, the highest ever reached 250,000 yuan , but currently only 20,000 yuan / ton.
Overcapacity and price slump is currently facing a number of challenges rare earth enterprises , and the integration of a large group of rare earth has been slow , perhaps the elimination of export quota system , allowing the export of rare earth return to the market will bring these companies a way out.
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Rare WTO Dispute suffered adverse ruling
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- Category: Rare Earth News
- Published on Tuesday, 01 April 2014 16:32
- Written by HJF
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At 14:00 on March 26th, 2014 ( Geneva time ) , the WTO disseminated to the public in the United States , European Union and Japan appeal the panel report my rare earth, tungsten and molybdenum export restrictions WTO dispute case , ruled me about rare earths , tungsten and molybdenum the export taxes , export quotas and export quota management measures violate WTO rules . The Panel also ruled that export taxes I belong to the " Protocol of " the obligation can not invoke " GATT " exception clause ; I export quotas and management measures to protect the environment and natural resources are not related , can not be " GATT "Exceptions to the exemption provisions of the Agreement . But the Chinese expert group recognized the right to take stringent environmental measures to protect the environment and natural resources. According to WTO rules, parties may appeal within 60 days after the report circulated . This declaration of the United States , Japan , the European Union co-sponsored lawsuit lasted two years and finally had the preliminary conclusions from the implementation of China's 1998 rare earth export quota system , or will be forced to end.
In 2009 , the United States , European Union, Mexico, on the Chinese raw material export restrictions appeal to the World Trade Organization WTO. 2011 , WTO ruled that China's export restrictions of raw materials violations . Yesterday , WTO officially ruled China 's restrictions on exports of rare earths violation.
World Trade Organization (WTO) declared the United States , Japan, the European Union co-sponsored lawsuit lasted two years and finally had the preliminary conclusions of 1998 rare earth export quota system implemented or will be forced to end.
Chinese rare earth export quota controversy , began in 2008 , in the middle experienced a " Chinese raw materials WTO dispute " , and finally a comprehensive upgrade to the level of trade disputes in the WTO in 2012 . And this case from the outset , there were already signs of an adverse verdict .
There are people close to the negotiations told this newspaper revealed that the rare earth , from the outset , the U.S. and Europe mainly in China and abroad fire sale prices vary , gaining an unfair trade advantage.
Expert Group report noted that China's rare earth export restrictions adopted failed to demonstrate protection of natural resources , but not with restrictions on domestic production or consumption, with the implementation of the measures . Think of export tariffs on rare earths , tungsten, molybdenum related products taken export quota management measures and export performance and the registered capital of the rare earths , molybdenum export enterprises do not meet the requirements imposed by the relevant WTO provisions .
According to the WTO dispute settlement practice, the panel report issued within 60 days of our country can appeal . After 3-4 months , WTO will issue a final ruling. If the final ruling is still considered China's rare earth export restrictions violation, then our country will be implementing the WTO ruling, amend the related export restrictions . Russia, as a third party to join the negotiations also provided evidence to support this position. And in WTO member countries , there are also a number of developing country Members to support China's position .
China Rare Earth Association Deputy Secretary-General Chen Zhanheng an interview with reporters , said the association has prepared to present specific content of the report ruled study and evaluate the ruling influence the outcome of China 's rare earth industry and member companies , the next step would be to take some measures based on the assessment results .
In China WTO Research Institute of Foreign Economic and Trade University Tu Xinquan opinion, this export quota management system in China since the 1980s began undoubtedly a challenge. One of the most critical is that even rare cases settled, there will be a game behind the other strategic resources. Therefore, China must be prepared at the strategic level , and the current domestic likely " invited heavy criticism " of the relevant measures for reflection.
China WTO Research Association , said He Weiwen of the rules significance than practical significance of rare cases . In fact the last two years because of the international market supply and demand pattern of rare earth changes, China 's quota is not enough, but used up . So even cancel future of rare earth quotas, market and industry will not happen much impact. Management of critical rare earth industry lies in the consolidation of the country .
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Rare contest: China need to fight fair rules
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- Category: Rare Earth News
- Published on Tuesday, 01 April 2014 16:25
- Written by HJF
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Recently, a bad news hit the morale of the people : the WTO Expert Group published a report on "The U.S. , EU, Japan v. China rare earths , tungsten, molybdenum export management measures related case" , preliminary results suggest that Chinese implementation of rare earth products such as export taxes and export quotas violate the provisions of the WTO framework .
This "trouble" expected.
Of course , there is an opportunity to appeal the Chinese : " After three or four months , will usher in a rare case of second instance , that the final ruling .
But the reality perspective, the likelihood of a successful appeal is unlikely. The case of an expert group members consisting of state-dominated Europe and America ; secondly, export taxes and export quotas of rare earth products such policies were issued by the Ministry of Finance and the Ministry of Commerce and Management , is a government act, trade practices between countries , just go WTO tube .
If the rare case eventually lost , will bring huge negative effect China : raw materials had a dispute case , WTO has ruled China canceled nine kinds of raw materials export quotas , Europe and other countries will take this as the entry point to China strategic resource management systems to form a comprehensive export shock .
For the rare case that many Chinese people feel very unjust . Over the years, China has accounted for only less than 30% of total global reserves of rare earth reserve supply more than 90% of production to the world . Cheapest time , China 's rare earth oxide sold only 15,000 yuan / ton, the cost of raw materials mined only enough , but the high prices on the international market, this number of times. We can say that in Europe and America enjoy a few decades China's cheap rare earths , China because of the exploitation of rare earth causing enormous environmental pollution. This is the price irreversible , China realized the seriousness of the problem, start self-protection , restrict exports of rare earths , the United States and Europe but after another to say "no ."
WTO favors , so Chinese people once again feel deeply dangerous and unfair rules of the game in today's world . In fact , no denying that China has been a victim of the current world political and economic rules of the game .
Commerce Department data show that in 2013 a total of 19 countries and regions of China launched a trade remedy investigations , a total of 92 onwards, an increase of 17.9 % over 2012 .
"This is a major victory for the U.S. , EU and Japan made " the British " Financial Times" summed up , WTO ruling was welcomed by trade officials of the United States , Japan and Europe .
Western countries undisguised joy , their hearts are like a mirror , " no country can hoard of rare earth from global markets, and to allow other WTO members to pay . "The United States Trade Representative Frohman actually willing to speak so Delightful : ' ruling means that U.S. manufacturing companies and workers will be able to compete fair ." European countries enjoying the joy of Chinese people frustrated .
Cheers people in Europe , the Chinese people once again feel the pride and arrogance of Western countries : they live or die regardless of others , just to get their needs met.
China's development in the use of immaturity and lack of Western and Japanese might be able to win the rare case of the WTO dispute , but European and American people happy , or too quickly .
Chinese old saying that the soldiers to be blocked , the water to soil cover . The rapid development of increasingly powerful China can not always be subject to a series of cases of people unfairly imposed unfair rules of the game , such as the case of rare earths , will stimulate and strengthen China and other developing countries to further seek to change the current unfair rules of the World determination. Even rare case settled, China can not fight, Gan Xinshou manipulated , " is exploring the establishment of normative systems consistent with WTO rules to protect rare earth and other strategic resources , such as taking the total mining limits, or a way to manage the resource tax export of resource products . "
Always be a way to cope . We believe that the United States and Europe eventually " lift a rock , smashing his own feet" of the day. United States and Europe in the face of oppression , China will be a positive response, and to develop counter-measures , such as the use of WTO rules, such as U.S. crude oil or natural gas exports proceedings.
All in all, China to protect their own interests, and the United States and Europe contest , perhaps only just begun.
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April 1, 2014 Market Price of Rare Earth
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- Category: Rare Earth News
- Published on Tuesday, 01 April 2014 16:28
- Written by HJF
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Today, the rare earth market due to continued weak demand for cold adjustment . Downstream magnetic , fluorescent , luminescent , alloy four major downstream industry procurement is still light, low market turnover significantly .
Dysprosium oxide mainstream manufacturers tax 160-170 yuan / ton, dysprosium iron mainstream manufacturers tax price 165-175 yuan / ton.
Praseodymium oxide mainstream manufacturers tax price 570,000-580,000 yuan / ton. Neodymium oxide 310,000-320,000 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 315,000-325,000 yuan / ton , praseodymium , neodymium metal mainstream manufacturers tax price 410000-42,000 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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China Rare Earth, How can we allow America, Europe and forcibly buying cheap
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- Category: Rare Earth News
- Published on Tuesday, 01 April 2014 16:22
- Written by HJF
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Rare international lawsuit played two years of the 26th WTO judgment of first instance against China . The reason is , that white is too large and small Chinese rare earth exports , the price is too high, fail in some Western powers will. This decision , in a word : unfair . Said a bit deeper , it is a false by the United States , Japan and Europe affect rhetoric , is not conducive to apply national rules latecomer to beat Li case. China continues to struggle is necessary, inevitable.
China rare earth owners , who stuff who call the shots, right and proper. The annual number of rare earth mining , how mining, export , how to price , naturally decided by China . " ruled " said it was necessary to listen to the United States , Japan and Europe. This is reminiscent of " dominate the market, hard sell ," the city of Pa acts. What 's up , this set also Hing , a good laugh .
Needless to say, equal while, some of China's rare earth mining companies rushed to earth, disorderly competition , compete to lower prices in the international market to sell , " baby selling cabbage price" , China suffered a major loss , other countries accounted for a great deal . Where there is a sense of right and wrong people could see that this is not normal, is unreasonable. China's current approach is simply not normal to let attributed to normal , put unreasonable to be reasonable. China never wanted a monopoly of rare earth trading , and no intention of hoarding , some countries just do not want to take advantage of the endless , self continues to suffer. It certainly does not violate the axioms.
Also see that China has accounted for only 23% of global reserves reserves to provide 95% of the world's rare earth production. To China continued this " exploit " the rare earth mining conditions , is clearly unethical. WTO should be told about the country , would like to use rare earth, but also to look somewhere else , do not stare at China hold. Many countries are rare , like the United States have a rich rare earth resources, just for selfish reasons, do not lay their own , try to consume others .
China WTO should be stated: First , the United States should advocate of sustainable development, which is a major principle , what other agreements, statutes , rules, and compliance should be consistent with this principle, contrary thereto shall be modified , improved. China in the overall planning of economic development , the rational use of resources for the country's future and its future generations to follow precisely the concept of the United Nations on sustainable development.
Second, environmental protection is a common task and the task of all mankind. China is facing serious challenges of environmental pollution , pollution control very difficult task. WTO has enormous influence as a global economic and trade organizations , should China pollution control actions to protect the environment to be strong support , including giving some preferential policies and measures. This relates to the 1.3 billion Chinese people and the world more human well-being. (Lloyd Wood )
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