In contrast, the price adjustment method is more preferable , as long as the resource tax and environmental taxes can be high enough to compensate for the cost of resources and the environment , there are naturally competitive enterprises can obtain the corresponding market share, but this approach can also resource and environmental costs transfer to the international market prices to suppress international market demand for Chinese rare earth.

March 26 , 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. Since March 13, 2012 the United States , European Union, Japan will export tariffs Chinese rare earth, tungsten, molybdenum related products , export quotas and export quota management and allocation measures to resort to WTO dispute settlement mechanism to date, has lasted more than two years , which a first trade dispute involves four global economy temporarily come to an end . In accordance with WTO procedures , China still has the right to appeal , and delayed several months , but the results may not change the General Assembly .

The rare earth export dispute sparked widespread concern at home and abroad , but the trade point of view is somewhat surprising. In 2012, China 's rare earth export less than $ 1 billion , and exports the same year, China socks over 4 billion U.S. dollars . Obviously , only from the point of view of trade , rare earth almost not worth mentioning. However , due to the particularity of Chinese dominance in the rare use of rare earth reserves , which from the outset, since the dispute was given a lot of significance beyond trade .

In fact , our country is not as outsiders imagine that the supply of rare earth have absolute control . On the one hand , the rare earth is irreplaceable been overestimated or overstated , after China began from rare earth export restrictions , some countries have developed a number of alternative materials or reduce the use of rare earth. Meanwhile, other countries have enormous reserves of rare earth , while there are many undiscovered rare earth reserves. In other words , the reason for the past 20 years , 90% of the world's supply of rare earths from China , just as China 's rare enough to cheap and abundant.

So, faced with this trade dispute , we should return to its trade interests friction origin , return to us repeatedly stated intention to protect resources and the environment .

From the point of view of trade , China's rare earth export controls does the use of rare earth enterprises in importing countries adversely affected. On the one hand , the export tax to make use of foreign importers and domestic rare earth enterprises are facing different prices. On the other hand , the export quota of rare earth lead to insufficient supply in the international market , increasing the cost of importing enterprises.

Indeed, from the maintenance of free trade principles of the WTO , the export duties and export quotas are not worth promoting measures, but the current WTO does not prohibit the use of export taxes , export quotas on the use is not allowed in principle , only to meet specific exception conditions before using . Country cited " GATT 1994 " exception to item 20 g as a defense that the export restriction measures taken to protect our exhaustible natural resources, but also to take measures related to domestic production or consumption.

China has a group of experts recognized the sustainable use of natural resources and China has the right to fully proved the existence of a comprehensive policy to protect rare earth resources , but is not considered necessary export quotas or illegal smuggling measures to prevent the exploitation of rare earth , can not prevent the illegal exploitation or production of rare earth domestic consumption , nothing to do with the protection of rare earth resources, it is difficult to identify Chinese exports and domestic consumption took the same restrictions .

Purely from the perspective of international law, it is difficult to deny the rationality of WTO panel analysis. In fact , such a case of deja vu . In 2009 , the United States , European Union, Mexico, the Chinese bauxite , coke, fluorspar and other nine kinds of raw materials export control measures taken to WTO. January 31, 2012 , WTO issued a report dismissing the appeal request China based on environmental or supply shortages preliminary ruling raised the export of nine raw materials, the final ruling I restriction violation . Based on the current situation, the reasonable expectation is that rare earth final decision probably will not be changed.

If so , WTO ruling will allow us inevitable , no choice , we can return to the source of production to achieve the resources and environment protection.

On China's rare earth control , the beginning of 2000 introduced a variety of measures , including enterprise integration , but the implementation of the results are poor, rare earth prices are way down . After 2009 , a substantial tightening of export quotas, export restrictions qualifications and the fight against smuggling of rare earth exports dropped significantly , prices rapidly increased, and peaked in mid-2011 . However , after the price increases , a substantial increase in production enthusiasm , stealing , smuggling is serious, the number of foreign customs statistics of rare earth imports from China is much larger than the export volume of Chinese customs statistics . Subsequently , despite declining exports of rare earth in the name , but also the corresponding rare earth prices fell sharply two-thirds.

In fact , in 2006 , China began to implement total control and management of rare earth mining , this constraint does not belong to the scope of WTO rules , entirely within our autonomy. Therefore, the future for legitimate mining companies , you can use the total control ( mining quotas ) or price adjustment ( resource tax and environmental taxes ) way . In contrast, the national trend in reducing the administrative examination and approval , the price adjustment method is more preferable , as long as the resource tax and environmental taxes can be high enough to compensate for the cost of resources and the environment , there are naturally competitive enterprises can obtain appropriate market share, and in this way can also be transmitted to the resource and environmental costs in the international market prices to suppress international market demand for Chinese rare earth.

Must see , another problem is that China's rare earth industry , there are many illegal miners , this price adjustment method is powerless, forced to rely on government , depending on our determination and ability to perform , the test of the government's wisdom.


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Changting rare earth catalysts in petroleum project matchmaking held in Changting County . China Petroleum Refining and Chemical Branch party secretary , deputy general manager Yang Ji Steel Group companies led by the relevant departments attended the project matchmaking .

Development and Reform Commission deputy director of Fujian Provincial Key Office Director Yu open ocean, Provincial Environmental Protection Department chief engineer Xu Birui , Longyan Municipal Committee, vice mayor Zhang Tianzhou , changting county party secretary Wei Dong , deputy secretary of the county , the county Lishan Chang , Fujian Party Working Committee ( Longyan ) rare Earth industry Park Caijin Wang , deputy secretary of the county , Fujian ( Longyan ) rare Earth industry Park Management Committee Director Liao Fangshun , county secretary , Tim Hill , deputy governor Huang Jian , accompanied by research or participate in seminars butt .

Ji- steel line inspected the rare earth catalysts in petroleum changting project site , under construction in the rare earth industrial park wastewater treatment plant and Jinlong Rare Earth Co. , then held Matchmaking forum.

The meeting noted that the project is both rare earth catalyst Longyan old industrial development needs, but also the need to CNPC catalyst development. Construction of rare earth catalyst project , must pay attention to environmental protection , we must consider whether there is sufficient capacity to support the market and the level of development, expansion, must focus on technological innovation and enhance its service capabilities , we must pay attention to efficiency balance , play a positive role , output greater than the investment, adding value .


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Recently , advanced rare earth materials industry technology innovation strategic alliance ( the pilot ) will be held in Beijing starting from 33 of China's rare earth industry alliance of 45 member units attended the meeting. The meeting elected Baotou Steel ( Group) Corporation chairman, party secretary Zhoubing Li , executive vice president for the Union , Baotou Steel Rare Earth as executive vice chairman of the unit .

The Alliance was founded by the Baotou Steel Rare -led "rare earth industry technology innovation strategic alliance" , as well as by the Beijing Nonferrous Metal Research Institute led the establishment of the "advanced rare earth materials and clean balance Industrial Technology Innovation Alliance " Integration formation made . Currently, the coalition gathered a large group of six rare earth , rare earth materials focus on domestic enterprises, research institutions and universities of 33 members of the unit , will actively carry out "research use " and effective cooperation , work together to industrial technology innovation solve key technological problems facing China's rare earth industry development , in order to accelerate the transformation of scientific and technological achievements and upgrading of industrial technology , to enhance the core competitiveness of the rare earth industry , and promote the healthy and orderly development of China's rare earth industry to contribute .


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It is understood that the second round of rare earth Shouchu ongoing negotiations are expected to finalize the details of the next purchasing and storage price. In Shouchu expected strong background , the recent rise of rare earth prices already crashed . Last week, the light and heavy rare earths fully rebound , lanthanum oxide, dysprosium rose 2.7% , 2.1 %. In addition, the Ministry of Industry and Raw Materials Division also recently released the " 2013 economic operation of the rare earth industry ," and working to deploy this year , the rare earth resource utilization management requirements specification , the rare earth utilization projects ( waste recycling , recycling Overlaid mine rescue , etc. ) included in the total production control plan management , focusing allocated to the newly formed six major rare earth enterprise groups. Analysts said that the rare earth processing stack Ministry Shouchu expected to promote further large group of rare earth , rare earth prices are expected steady upward trend in the future , especially in a time when traditional sales season in March and April , rare earth prices will show more strong ; coupled with Tesla ready to invest ten billion U.S. dollars to build a super battery factory , constantly developing new energy vehicles will continue to push up demand for rare earths , and thus the market price of rare earth stocks can be expected .

Rare large group + Shouchu close

According to media reports , early in January 2014 , the Ministry of Industry and Information Technology jointly with relevant departments in Beijing held a rare formation of large enterprise groups thematic sessions. The meeting said, according to the law of survival of the fittest market , has been basically formed Baotou Steel Group , China Minmetals , Chinalco , Guangdong earth, Ganzhou Rare Earth and Xiamen Tungsten ( 600549 ) and other six companies led industry development pattern. Next to the flow, focusing on the six companies , to further promote mergers and acquisitions, formation of large rare earth enterprise groups.

Ministry stressed the need to give full play to the decisive role of the market in resource allocation , business-oriented , diversified investment , market operation , and promote mergers and acquisitions by the "Let Me restructuring" to "I want restructuring" changes.

Day laborers in the February 21 letter to the Department 's announcement to accelerate the formation of large rare earth enterprises Group had been placed in a prominent position on . The announcement said the consolidation and expansion of China Minmetals has been formed , China Aluminum ( 601600 ) , Baotou Steel Rare Earth ( 600111 ) , Ganzhou Rare Earth , Guangdong, rare earth, rare earth enterprises Xiamen Tungsten six major mergers and acquisitions based on the pattern of integration separation of domestic rare earth mining and smelting enterprises in this process to close down a number of illegal businesses , converting a number of enterprises , restructuring of a number of enterprises , dramatically reducing the number of separated rare earth smelting enterprises , resolve excess capacity. Adhere to government guidance, principles of corporate -led, multi-investment , market-oriented operation , play a decisive role in the allocation of resources in the market , a combination of economic , technical, legal and necessary administrative means to eliminate institutional obstacles , grasp this opportunity to promote mergers and acquisitions, as soon as possible forming a pattern of development of large enterprise groups leading rare earth rare earth industry .

Now, after several years of consolidation, the basic form of the rare earth industry Southern local businesses and the central enterprises coexist . Baotou Steel Rare Earth , Rising Nonferrous ( 600259 ) , Ganzhou Rare Earth , Xiamen Tungsten and other local businesses , since the identification of resource- link to group integration, while Minmetals and through mergers and acquisitions in the downstream aluminum smelting separation and processing industries , and gradually upwards Tour penetration, use the "infiltration routes " to obtain the right to speak upstream .

In addition, according to media reports , purchasing and storage of rare earth in the second round of negotiations currently underway , this round of negotiations is expected to be able to finalize the details of the purchasing and storage of rare earth prices. At present, the authority of the site Metals analyst confirmed the news , adding that if the negotiations to reach an agreement , the purchasing and storage , or open in May .

CRE Securities research report shows that in December 2013 the State Reserve Bureau and the six manufacturers for purchasing and storage agent to negotiate the first round of purchasing and storage , according to three scenarios , the benchmark price of purchasing and storage of rare earth rare earth prices slightly higher than the current 5% -6 % , but negotiations failed due to a lesser extent . Some analysts said the impact of this round will be the price of purchasing and storage of rare earth huge Shouchu still fail if the first half of this year , the traders and even manufacturers will accelerate the flow of cash into the market , and will follow the business mentality change, rare earth prices Short-term is difficult to climb ; contrary Shouchu on, the stock inventory will flow to the State Reserve Bureau , the braking pressure to reduce stock prices, market trends in order to assist the clearing , plus after March is the peak season demand for rare earths , rare earth prices are expected to stabilize higher.

Rare earth prices short-term bullish

In addition to the restructuring of rare earth , and always keep the pressure up to combat illegal activities , this work has been the focus of the Ministry on the rare position in 2014 to work on .

The notice said that this year will strengthen supervision, the Ministry of Industry and Information Technology with the police, land, environmental protection , customs, taxation , safety supervision departments to increase efforts to verify the issues highlighted area , supervise the handling of key cases ; establishment and the light rare earth heavy rare earth production areas to combat illegal linkage mechanism , timely communication of information , coordination, unity of action ; rare invoices by means of data sharing , improve the reporting system , such as the timely detection of problems and dealt with ; implement territorial regulatory responsibility , urging local resolutely investigate and deal with illegal acts ; efforts to increase the accountability of local government regulation of individual responsibility is not implemented , collusion , illegal acts such as approval of the project accountability ; strengthen social public opinion , news media good practice , exposure and other six typical cases work will focus .

In fact, the industry has always been to enhance the crackdown will be short-term rise in rare earth prices. In mid-2013 a nationwide Rare remediation , is that within the next dysprosium oxide less than a month soared 77%. The current data show that the first week after the Spring Festival , praseodymium , neodymium mainstream price from $ 300,000 -30.5 yuan / ton before the Spring Festival adjusted to 315,000 yuan -32 yuan / ton. Praseodymium neodymium metal market prices from 380,000 yuan -38.5 mainstream yuan / ton to adjust to 395,000 yuan per ton -40 million businesses have even quoted to 420,000 yuan / ton, but no record deal .

At the same time , gadolinium oxide and gadolinium iron prices have seen a slight rebound , the current gadolinium oxide and gadolinium iron prices were at 155,000 yuan mainstream -16 yuan / ton and 160,000 yuan -16.5 yuan / ton , compared Each year more than a pick-up of about 10,000 yuan per ton or so .

Redoubt metal analyst Gao Yan believes that the reasons for the change in rare earth prices , mainly less downstream NdFeB factory stock , after all enterprises have started production, will buy some raw materials ; another based on past experience, the annual the market will rebound after a wave of Chinese New Year started , so cargo operators are reluctant sellers cover their goods , resulting in tight supply in the spot , the price rebounded .

Insiders said that the combination of multiple ministries last August remediation rare circumstances promote illegal rare earth prices Stories of view, if this year to combat illegal activities intensified again, the high probability of rare earth prices will steadily rise.

Electric car boom driven by demand for rare earth permanent magnet

Since the past year, Tesla electric car in the world set off a frenzy . Data show that Tesla electric car in 2013 the global cumulative sales reached 22,300 , which will be this year's sales target set at 35,000 , is expected to grow 55%. According to information , the current Tesla lithium-ion car batteries are Panasonic supplies for further cost savings , future Tesla will build a lithium-ion battery manufacturing plant .

Currently the industry is expected to promote the electric car will be fast in China 's passenger cars, trucks and specialty micro- car segment , the current domestic battery , motor industry chain level , there are three areas can quickly promote electric cars : one passenger markets, especially the bus market ; Second minicar , mainly in A0 level ( eg Benben , QQ , etc. ) ; Third, vehicles , mainly logistics vehicles, such as environmental protection , courier , postal and other special vehicles.

Industry experts have said that the future demand for new energy compared to determine motor vehicles, China has a comparative advantage in this regard. Although the path of development of battery technology , there are still uncertainties, but more certain future demand for new energy vehicles motor. Specifically, China in the field of new energy vehicles motor has the following advantages: First, rare earth resources, currently accounting for motor rare earth costs 10 % -30 % ; Second, human resources, high degree of customization motor decide labor costs than high, the Chinese labor cost advantage is obvious ; Third stage of the development of the automotive market advantages , China's auto penetration rate is low , the acceptance of electric vehicles is relatively higher.


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