Which lasted two years, the United States , Japan, EU trade lawsuit against China 's rare to make a preliminary ruling on March 26 , WTO ruled against China , finds China 's rare earth export restrictions and export taxes and other related systems in violation of WTO commitments. Although China may appeal WTO Final Commission within 60 days , but the possibility of winning is minimal. Insiders told the China Chemical Industry News reporter interviewed generally agreed that , after the final ruling , in our country there may be six months to a year are forced to modify the export of rare earth industry policy , from 2015 onwards, of rare earth export quotas or canceled export tariffs may also be reduced. This means that policy changes related industries affected , the relevant business or China's rare earth industry will face a new round of reshuffle, long-term good regular large-scale enterprises.

Anonymity of large domestic rare earth company official said the China Chemical Industry News reporter , the United States , Japan and Europe to China rare earth trade litigation , in essence, is unbearable Chinese rare earth export prices artificially high, rather than the quota system itself. He told reporters , in fact, from 2011 to 2013, China's rare earth export quotas are not exhausted , the impact of foreign demand for rare earth quotas absence . 2011 Chinese rare earth export quotas only took 52.01 percent , 48.75 percent in 2012 , while in 2013 the total export quota of 24,000 tons of rare earth , rare earth export quota for the actual physical volume of products throughout the year only 22,900 tons , it does not run out . Rare high prices also contributed to sharp drop in domestic demand for rare earths and rare earth alternatives to accelerate the development and application of the direct cause . According to the annual report shows that in 2011 China's largest rare earth production companies Baotou Steel Rare Earth Marketing income 115 million, operating profit of $ 7.3 billion, nearly 70% profit margin . 2012 and 2013 , although the market has shrunk , but the company profits reached 1.51 billion yuan , 1.574 billion yuan .

China Chemical Industry News reporter in an interview that the industry enterprises are considered , WTO losing is not a "scourge " , the impact of China's rare earth industry are also not negative , it should be said to be " mixed ."

"If the export quotas and tariff reduction , rare earth prices will then be adjusted downward , causing the industry reshuffle is inevitable enterprise . " Huayi Huyao Bin , general manager of Inner Mongolia Rare Earth Co., told reporters . He analyzed that the good news is that after the release of rare earth exports , with the decline in the cost of Chinese overseas orders will increase. In addition, the low tariffs or to squeeze the living space of the smuggling business , big business more profitable for the formal . The short term, foreign markets because consumer demand is likely to increase the price downward , can stimulate domestic enterprises rebound in exports , is expected to alleviate the shortage of rare earth related products demand pressures.

He believes that from rare earth production and business long term, the impact of rare earth export policy adjustment is not the key reason for the industry operating order. Excessive exploitation of rare earth bring supply and demand imbalance , excess capacity, low industry concentration , resource potential illegal violations , lack of domestic enterprises and technological innovation, low-end chain is a major problem plagued the development of China 's rare earth industry . Therefore, if the award can boost our long-term governance of violations, enhance domestic and foreign demand , the upgrading of industrial technology, the industry's long-term good business .

Huyao Bin said that in 1985 , China began to implement a rare earth export tax rebate policy , rare earth exports increased year by year ; 1998 , China began to implement a system for licensing the export quota of rare earth products , and the inclusion of rare earth materials processing trade ban catalog ; 2005 years , the Chinese government canceled the rare earth export tax rebates, export quotas and reduced the corporate places. In fact , over the years the rare earth export restrictions limited to raw materials, functional materials exported to downstream devices and applications , such as no restrictions . At present, China 's rare earth export more products to materials, device -based, so the WTO against the export of such products are not affected.

It is understood that actively prepare after losing a few companies , the means are different. Baotou Steel Rare Earth , the official told reporters that the ruling against the State designated lead for leading the restructuring of large enterprise groups will not cause too severely affected. The official said that the best response is to clear away the obstacles in the process of mergers and acquisitions , to allow more companies to participate in the restructuring , rare earth materials production enterprises to expand the scope of the merger , after all, Baotou Steel Rare Earth Mineral Resources have upstream control advantage, competitive opponents are mainly exported after the release of foreign enterprises .

The general feeling is that the situation is grim large number of private small and medium rare . The companies said the United States and Australia have started production of other rare earth mine , China's global share of rare earth output , has now dropped to 85% from 95% three years ago. After the release export , and renewed international pressure of market competition , better coping strategy is to constantly improve the technology and equipment to meet our large group merger conditions , and into large groups , such as the conversion does not meet the conditions in other industries or only faces close of business.

Face exports of rare earths "gate " will open at the low end China's rare earth industry chain enterprises generally international competitiveness relative weakness dilemma. Ministry of Industry and Industrial Research Institute of Materials CCID director Yuankai Hong believes that state and local governments at all levels should be reduced by direct intervention , in addition to involving national security rare earth new materials industry , the indirect effects can be achieved through taxation , regulatory , institutional , financial resources and industrial policy should focus on basic , strategic and applied research oriented sectors , in order to promote rare earth enterprises to develop high-end products of rare earth materials .

Expert opinion

Three factors that accelerate business " shuffle" process

The former State Planning Commission, the panel members from RE Mapeng

The end result is losing quota of rare earth cancellation policy , lowered tariffs on exports of rare earths gates open, opened the prelude to a new round of corporate reshuffle . On the one hand , a period of time , all kinds of rare earth products in general prices will fall further , which will directly lead to the closure of some SMEs outs or acquisitions ; on the other hand , for environmental reasons, the government will stimulate industry consolidation on the basis of pre- accelerate large group reorganization process.

After the release of rare earth exports , domestic enterprises will soon be a new round of reshuffle , its three main reasons: first , driven by economic interests , the role of law in the new situation and new markets , companies will inevitably arise between competing prices down again phenomenon , rare earth prices began to fall and eventually return to a rational range. In this case , according to the survival of the fittest rules for SMEs , the number will be significantly reduced . Due to the current rare earth market ripe honed over many years , it does not appear years before the industry is worried about the kind of " cabbage price ."

Second , if not strengthen supervision , it is possible to stimulate domestic illegal mining of rare earth minerals dug steal rebound phenomenon , exacerbated by environmental degradation , disrupted the market order , and even make the results of the industry in recent years, regulatory governance destroyed. To avoid a repeat of past exploration and production of rare earth resources to pay the huge environmental costs of mistakes , the state will increase efforts to crack down on illegal mining and production , and will accelerate the pace of consolidation and restructuring of a large group progress to improve industry concentration , optimize the structure of domestic enterprises to compete . Currently, the national focus on supporting the Baotou Steel Group , China Minmetals , Chinalco , Guangdong earth, Ganzhou Rare Earth and Xiamen Tungsten led six companies to promote mergers and acquisitions work was not successful, as the WTO to resolve the adverse impact of losing , this process will be accelerated.

Third , the domestic and foreign enterprises to compete with Taiwan time has come , it will exacerbate the impact of domestic enterprises make the industrial structure has changed . Currently , the Australian Lynas Corporation, USA molybdenum mining company so rare in the implementation of development projects, some projects have begun to supply products to the market , foreign companies will be forced to re-shuffle in the world's rare earth market platform.

" severity" of rare earth enterprises or different fate

Rare Dean of Inner Mongolia University of Science and Technology Zhang Yin

To cope with the adverse effects of WTO brought against the rare earth industry policy implemented by our government is most likely to implement differentiated classification management of LREE , which is to release the export control some species , such as the management of the light rare earth exports to some extent liberalized, but still heavy rare earth implementation of conservation policies. So the biggest variable is the light rare earth production enterprises, the future " severity " rare earth enterprises in the new round of reshuffle tide of fate or will be different.

China's rare earth resources can be divided into light rare earth mine in northern and southern ionic heavy rare earth mine. Serious excess of light rare earth products , especially lanthanum , cerium products. Future oversupply of light rare earth , but there could be a shortage of heavy rare earth phenomenon . Meanwhile, the heavy rare earth high-tech products are the main raw materials required . United States, Malaysia , Australia, South Africa and other countries launched projects are light rare earth project , the shortage of heavy rare earth resources, especially dysprosium, terbium and other elements almost nothing, and therefore foreign demand for China 's large heavy rare earth , they must rely on China .

Compared with the heavy rare earths , light rare earth regardless of domestic and foreign reserves and production are large, the economic value and strategic significance is not large, export prices are expected to dip further , light rare earth companies have been hit relatively large production operations increasingly difficult. The product itself, the market supply relative shortage of heavy rare earth enterprises , if the state implemented "system protection " export , the distinction between heavy and light rare earth rare earth tariffs , light rare release , heavy rare earth strict, narrow policy control, coupled with regulatory sector is also increasing efforts to combat illegal mining of heavy rare phenomenon, its price will not significantly reduce the risk , but corporate profits have improved to varying degrees .


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