WTO appeal pending Shouchu rumors underway hardly be optimistic about China Rare Earth

U.S., Japan and Europe will export tariffs on Chinese rare earths , tungsten, molybdenum related products , export quotas and export quota management and allocation measures to resort to WTO dispute settlement mechanism , the two sides negotiated to no avail , the same year on July 23 , WTO Expert Group was established as a The case ruling body.

After a two-year long wait , March 26, 2014 WTO panel to make a preliminary ruling on the U.S. , Japan, Europe lawsuit against Chinese exports of rare earth , tungsten, molybdenum and other products , WTO ruled against China , finds China the rare earth export restrictions and export taxes and other related systems in violation of WTO commitments . Commerce Department disclosure , the panel reports that China for rare earths , tungsten, molybdenum products export duties , export quotas and export performance of the relevant export enterprises registered capital requirement imposed and does not meet the " 1994 General Agreement on Trade Off " and " China's accession to the Protocol " the relevant regulations. The role of the WTO ruled that China 's rare earth export quotas to protect resources independent of that export quotas or export smuggling measures must not illegal exploitation of rare earth products to prevent , can not prevent the illegal exploitation of domestic consumption or production of rare earths , but it will pass stimulate domestic consumer spending negative signal. However , WTO rejected the EU Expert Group on discrimination against foreign companies accused Chinese demands , reports The ruling also recognized Chinese sovereignty over natural resources conservation principles and policies .

April 17 , Ministry of Commerce spokesman Shen Danyang at a regular press conference that the United States on April 8 on its appeal my rare earth, tungsten , molybdenum WTO Dispute export management measures related to the WTO Dispute Settlement Body appealed , China on April 17 to resolve cross- appeal bodies to the WTO dispute . Shen Danyang said that the current case is in the trial stage of the Appellate Body , the Chinese side will make every effort to appeals . " Whatever the outcome of the appeal , Chinese protection of resources , environmental policy objectives will not change , it will continue to comply with WTO rules and ways to strengthen the management of resource products , maintain fair competition. Notably , the WTO members to respect the sovereignty of natural resources , accreditation resources , environmental policy objectives , this has been reflected in the report of the Expert Group were . "

Currently the industry generally believe that even if the appeal is also a great possibility of losing , but time dragged on longer only. If unsuccessful , the impact of global rare earth prices will be more significant, has been the rare earth export price is higher than the domestic price , if the elimination of export quotas and tariffs on Chinese rare earth export prices compared with foreign manufacturers have certain advantages, will rare form of foreign manufacturers impact .

Domestic , the beginning may be play a role to boost rare earth prices , but if the government crackdown on the illegal exploitation of rare earth mine slack , then the latter in order to compete in export orders , lower prices may be competing among export companies, rare earth prices again confusion may thus lower.

In the WTO proceedings against the same period to determine rare earth again start purchasing and storage news , causing the industry 's attention to the news as much as the weak market has injected a stimulant . From the beginning of October 2013 the market on rumors of rare earth reserve, which accompanied the end of December due to low reserve price and bids , then there will be market rumors that the second tender , but from January to March , and there is no substantial progress .

April 3rd , the 4th China Minmetals Rare Earth oxides twice publicly quoted price adjustment . April 10 , China Minmetals Rare Earth again raised publicly listed Price: praseodymium , neodymium 390,000 yuan / ton, praseodymium oxide 650,000 yuan / ton, neodymium oxide 390,000 yuan / ton, europium oxide 4.9 million yuan / ton, oxidized Tb 3.9 million yuan / ton, lutetium oxide 9.7 million yuan / ton, dysprosium oxide 2.05 million yuan / ton, erbium oxide 380,000 yuan / ton , yttria 75,000 yuan / ton. April 14 , the Guangdong Southern Rare Earth Reserves Supply Chain Management Co., Ltd. has raised public listing of rare earth oxide prices : praseodymia 660,000 yuan / ton, neodymium oxide 390,000 yuan / ton, praseodymium , neodymium 390,000 yuan / ton, europium oxide 4.95 million yuan / ton, terbium oxide 3.9 million yuan / ton, dysprosium oxide 2.03 million yuan / ton, erbium oxide 390,000 yuan / ton , yttria 73,000 yuan / ton, lutetium oxide 9.8 million yuan / ton. Although several large publicly listed companies continue to raise prices oxides , but the market reaction was not positive , though the expected impact in the purchasing and storage of some products prices rebounded slightly , and did not meet their expectations.

There was news that April 10 will ultimately determine the price of purchasing and storage , but in the end did not have a detailed plan introduced, the majority of people currently on the market are still the last hope of purchasing and storage of sustenance and the end , but can eventually determine the purchasing and storage price is still unknown , according to the current news on the market collected can determine the purchasing and storage of the product range is praseodymium oxide , neodymium oxide, praseodymium oxide, neodymium oxide, europium , terbium oxide, lutetium oxide, dysprosium erbium oxide , yttrium oxide , purchasing and storage quantity in the original 10,000 tons on the basis of an additional 30% of the self- storage business .

Currently, the problem is that the industry is most concerned about purchasing and storage of rare-earth prices, the market there was a rumor that the purchasing and storage of rare earth prices about 10 % to 15 % higher than the current market price of the mainstream , but in the final official Shouchu Conditions before the introduction of any message also belong to guess.

Based on past experience, purchasing and storage , according to the average price is generally six months before purchasing and storage as purchasing and storage of the reference price, but generally no more than a few large companies publicly listed price. After statistical oxide, praseodymium , neodymium , praseodymium oxide, neodymium oxide, europium , terbium oxide, lutetium oxide, dysprosium oxide, erbium oxide, yttrium oxide in October 2013 - March 2014 the average price of these six months were 32 yuan / ton, 575,000 yuan / ton, 315,000 yuan / ton, 4.615 million yuan / ton, 364 yuan / ton, 8.66 million yuan / ton and 180 yuan / ton, 350,000 yuan / ton, 65,000 yuan / ton , some of which is lower than the current spot price price if this price reserve, will be the subject may flow again , and the possibility of purchasing and storage of the premium is not large , so if the current round of purchasing and storage at the current spot market chances of success will be greater purchasing and storage price .

After purchasing and storage , if true , a problem also affect the rare earth market is more concerned about the industry , most industry insiders believe is contrary to the market 's purchasing and storage of rare earth , rare earth Shouchu because it seems not to ease the supply and demand of the market, is more like to pull Price . Since 2011, each higher than the market price of purchasing and storage , see the intention , because life is not like other rare earth materials purchasing and storage purchasing and storage is to regulate the market supply and demand . There are many small and medium enterprises and traders purchasing and storage is considered rare just a few big companies can participate favorable purchasing and storage , there is no substantive impact on SMEs , if influential , is nothing more than after purchasing and storage price the case is pulled high , as much as possible to sell some goods only.

In the case of losing WTO , liberalization of export quotas and export tariffs and other restrictions , the purchasing and storage measures are not determined how the rare earth industry into the fast lane to the healthy development of rare earth industry need to think about the whole issue.

We believe , first of all, the government should adopt to promote the integration of large enterprises in the strict control of exploitation , the fight against illegal mining and smuggling issues intensify supervision, spare article at the source , reducing overcapacity caused by a variety of problems.

The second is to ensure that national resources under the premise of safety , market allocation of resources into full play the role of the full introduction of market competition mechanism , and actively guide enterprises and foreign enterprises, encourage and support business innovation , research and development of new products with independent intellectual property rights , new technology to improve their competitiveness.

The final step is to re-examine the purpose and significance of purchasing and storage , and better play the role of purchasing and storage through purchasing and storage and other ways to ensure a balance between supply and demand in order to achieve the maintenance of price stability in the market for such purposes .

Blacksmith needs its own hardware , and only really recognize their own problems , and actively change in order to promote the healthy development of rare earth industry .


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