Rare earth industry goodbye to a "quota era"

Recently, China has rare earth WTO dispute first instance " losing " appeal , the rare earth industry goodbye to a "quota era" almost a foregone conclusion . However, industry experts, this result or the rare earth industry market Forced speed the process .

The end of March this year, the WTO ruled that China's rare earth export management measures and other related violations . April 25 , China thereon to the WTO Appellate Body AppellateBody submit the appeal documents. In the industry view , China lost almost become inevitable. This also means that China 's rare earth industry will bid farewell to its well-established export quota management.

But industry experts also said that open the door to greet the upcoming international competition China rare earth industry, deregulation or Forced accelerate their speed to market.

In fact , in order to adapt to changes in the market environment, the rare earth industry has already started early internal integration , including the construction of the Exchange platform. January 4 this year , as the territory 's first place of rare earth products specializing in electronic trading spot , south Exchange of rare earth products in Guangdong Ping Yuan Trading Center officially opened operations.

According to the person in charge Wu Haiming introduced Rare South Exchange Trading Center is an open platform , custodian bank funds after investors signed an agreement can be accessed directly by clients of rare earth products and participate in the transaction . On this platform , has become the norm of rare earth oxides , securitization, electronic, circulation of goods monetization , and is expected to become the gold , silver and a variety of international investment .

Wu Haiming said, with the establishment of rare earth trade centers , rare earth products from simple industrial investment goods become . Its low investment threshold help to mobilize private capital to participate in purchasing and storage . At the same time , more rare earth production companies and companies involved in downstream smelting separation will also greatly facilitate the sale of rare earth products and mobile . Investment inflows expected to form from prospecting , mining , smelting , processing to recycling orderly rationalization of the rare earth market .

It is reported that Baotou Rare Earth Products Exchange also on March 28, 2014 opening. Insiders said that the two largest trading center for rare earth products have been put into operation, or bring trading opportunities for rare earth products . Data show that , after a sustained decline in the fourth quarter of 2013 , the level of the bottom of the rare-earth prices have nearly mid-2013 period. Under the future is expected to increase in the rare earth purchasing and storage , as well as relevant national policies to support the background , rare earth prices are expected to steady rising .

It is worth noting that, in addition to investment capital, "relaxation " after the rare earth industry for industry investors also had a great attraction . Some experts expect that the time is ripe , "rare earth industry funds ," "rare earth deep processing industry" , " rare earth products trading ," " Rare finance" is expected to focus on the wave of strikes and other investments .


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Mention the protection of rare earth resources tax is wonderful chess

China Rare Earth face WTO litigation , the status of rare earth export tariffs will be partially canceled , the state of rare earth regulation and integration efforts will again increase . It is reported that the National Tax Administration , Ministry of Industry , the Ministry of Finance is working on rare earth resources brewing once again raise taxes , rare earth resource tax could significantly increase the existing standard , based on the specific proportion is still under discussion .

Earlier WTO panel ruled that Chinese exports of rare earth export taxes imposed , control measures violate WTO rules , and can not be proved to be necessary means to protect the resources, but also means that the protection of the resources of non-compliance . They believe China by raising tariffs and quotas of rare earth export controls, limited only by the supply of rare earths abroad , without limitation domestic consumption of rare earths , government intervention is not appropriate , then sentenced to China lost. Domestic experts believe that the possibility of China this judgment " comeback " is very small. This means that in the future China is difficult to protect rare earth resources and protect the environment through measures of export taxes and quotas regulation.

But China 's rare earth resources and environmental protection is still grim.

It is understood that China has more than 200 various types of rare earth production companies , mostly small businesses , only more than 20 backbone enterprises , industry concentration is low . The U.S. rare earth industry only two companies , the only one in France . China 's rare earth industry "small scattered poor" , resulting in waste of resources and market confusion. Currently the state-owned domestic rare earth mining resource recovery is generally 60 percent of private mining resource recovery generally less than 40 %. Our unique ionic rare earth mine in the south , are rare in the world , the limited reserves of heavy rare earth resources , the current average utilization rate of only 20 % -50 %. Rare product oversupply , lower prices among competing companies , resulting in a large number of cheap exports of rare earth , smuggling and sale of a large number of cases even exist.

Improve rare earth resources tax to enhance domestic and international market prices of rare earths from the source , so that reflect the environmental costs of scarcity and exploitation of resources, and changes in supply and demand through price increases , effectively reduce smuggling and other countries to buy hoarding rare phenomenon , while helping to reduce lost because of WTO on China's rare earth managed to bring negative effects.

Previously , in order to circumvent the export quota control , some developed countries, large-scale investment companies set up factories in China's rare earth resources area , Inner Mongolia, only there are nearly 10 foreign-owned factories . Buying a lot of these companies in the local raw materials and rare earth metals, simple processing after shipped abroad for further processing or reserves. Foreign companies to get primary products , value-added products 10 -fold purification. Japan, Europe and spotted the cheap " Chinese goods " and even sealed their mines , by buying Chinese rare earth industry and meet the needs of its cutting-edge technology in the field of rare earth resources. Quotas of rare earth products to some extent on the implementation of the already sidelined .

In high export tariffs and quota control , the presence of domestic rare earth prices huge spread, causing rampant smuggling . It is estimated that in 2009 China's rare earth smuggled more than 20,000 tons , accounting for the actual export volume of 1 /3. Lack of rare earth resources, rare earth products imported from Japan, the main country, in the rare earth export quotas gradually reduced, some large Japanese companies rely on smuggling to meet the needs of about 1 /4 . If substantial increase in resources tax , raise production costs, forcing companies to raise prices , it can better eliminate spread abroad , suppress smuggling prevalent.


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May 21, 2014 market price of rare earth market

Incompetent due to demand , continuing weakness in the rare earth market today unchanged . On the one hand , the overall operating rate continues to remain low , but also because the downstream aspects of procurement plans sentiment doctrinal outlook is uncertain , the overall market -based transaction prices steady .

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

Praseodymium oxide mainstream manufacturers tax price 570,000-580,000 yuan / ton. Neodymium oxide 320,000-325,000 yuan / ton.

Lanthanum oxide manufacturers tax price 18,500-19,500 yuan / ton. Cerium oxide mainstream manufacturers tax price 19,500-20,500 yuan / ton.

Neodymium oxide, praseodymium mainstream manufacturers tax price 325,000-330,000 yuan / ton , praseodymium , neodymium metal mainstream manufacturers tax price 410,000-420,000 yuan / ton.

Fluorescent europium oxide mainstream manufacturers tax price 3,800-4,000 yuan / kg. Terbium oxide phosphor grade mainstream manufacturers tax price 3,000-3,200 yuan / kg.


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Rare earth prices have been close to the bottom level

For a long time , China's rare earth resources due to various reasons has been used as a large-scale sale of cabbage . According to statistics , China's rare earth reserves remaining 27 million tons , accounting for more than the past down from the current 70 % to 30% of total world reserves . At the current production rate , China's medium and heavy rare earth reserves only class for 15 to 20 years , the future is likely to require expensive imports . To this end, our country has taken a number of policy measures. In 2007, China began to implement mandatory plan for rare earth production and decreasing export quotas to limit exports of rare earths , and improve individual rare earth export tariffs from 2011 onwards, in order to better protect the resource , in April 2011 for the first time a substantial increase in the rare earth resource tax. Learned that in 2011 , the Ministry of Finance , State Administration of Taxation issued a notice for the first time , the decision since the year April 1 , uniform adjustment of rare earth mineral ore resources tax rate increases of more than 10 times . Rare earth resources tax was adjusted as follows: light rare earths including bastnaesite , monazite , 60 yuan / ton ; heavy rare earth including xenotime , ionic rare earth mine, 30 yuan / ton. However, faced with rare defeat WTO litigation , some rare earth export tariffs had to be canceled .

To this end, the relevant state departments are working to improve the brewing again rare earth resources tax , internal regulation of rare earth industry means overweight . Improve rare earth resource tax is seen as many people in the industry is an important means to control the rare earth industry. The authorities admitted that improve rare earth resource tax rate , improve the market price of rare earths from the source , so that reflects the scarcity and environmental costs of mining resources and changing supply and demand through price increases , effectively reduce smuggling and other countries to buy hoarding rare phenomenon , while helping to reduce the negative effects of losing because of WTO on China's rare earth management brings .

Statistics show that , after a prolonged decline in the fourth quarter of 2013 , rare earth prices have been close to the level in mid-2013 when the bottom . In the main producing areas of Baotou Rare Earth , for example, rare earth enterprises above the scale of the city's existing 34 , January-March operating rate of 91.2% , the sales revenue 1.81 billion yuan , down 25.3% ; profit only 210 million yuan , down 4.7% , from the export situation, the rare earth industry export delivery value of 31 million yuan , down 47.2 percent . Learned , with a large group of rare earth mining rights will take precedence benefit , including Baotou Steel Rare Earth , Xiamen Tungsten , Minmetals Rare , Rising colored , Chinalco and Ganzhou Rare Earth .

There are indications that , through taxation to highlight the scarcity of rare earths is imminent . Centre for European Economic Research said until 2020 China will remain a monopoly in the field of heavy rare earths . Currently, about 90 percent of the world's rare earth products still come from China . " Global demand for Chinese rare earths could ' comeback ', especially after the abolition of tariffs , only through internal regulation to protect valuable rare earth resources. " Industry analysts pointed out .


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Most difficult steady downward price of rare earth products

Part of oxides of rare earth market prices continue to fall , the market is still deserted . Market competition in the large rare earth supply-side , demand and poor , businesses have shipping prices , profits are dwindling . Praseodymium neodymium products, currently with votes and with no overall ticket prices slightly down, according to the manufacturers said Baotou praseodymium neodymium metal is now without a ticket from 355,000 yuan / ton down to 352,000 yuan / ton, praseodymium , neodymium oxide with no votes from Last week's 285,000 fell to 28 yuan / ton. It is now part of Ganzhou suppliers understand now praseodymium neodymium oxide, praseodymium and neodymium metal band slightly lower ticket prices $ 5,000 / ton.

Dysprosium products market, dysprosium oxide and dysprosium iron prices have difficult firm, dysprosium oxide prices began falling recently , traders said Ganzhou area with ticket prices have gradually reduced from 1.7 million yuan / ton to 168 yuan / ton, while has now dropped to 1.63 million yuan / ton, dysprosium iron also lowered twice , is now 173 yuan / ton, while the price is still better than some businesses offer higher.

In addition , lanthanum , cerium, neodymium , erbium oxide market , despite the current prices have been relatively low , the mainstream market is still increasingly downward. According to the manufacturers of Baotou reflect , lanthanum, cerium oxide is now 19,000 / ton ship can profit further compressed . Erbium, neodymium oxide prices were relatively stable or slightly down last week quoted $ 5,000 / ton, the market downturn continued .


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