In the industry generally believe that China's rare earth industry is about to bottom out on the occasion , bad struck again . Recently, some media reported that in the U.S., EU and Japan jointly sued China " undue restrictions on exports of rare earths " issue , WTO dispute mechanism summary of the " Interim Report of the United States and Japan generally considered reasonable demands ." Report and pointed out: " In late November will introduce the final report is not expected to overturn the judgment , the United States , Japan and Europe may favor on this issue . "

"The Middle East has oil , China has rare earths " , China was once rare to meet 90% of global market demand. Therefore, the Chinese government carried out on the rare earth export quota restrictions will naturally America, Europe and the developed economies uneasy. If the United States and Europe on this issue in favor of the Chinese export quotas will have to make concessions on the issue , and thus the earth tariffs, quotas fully liberalized , rare earth prices is likely to return to this "cabbage price ." Insiders told the South are reporters said , the results with China 's rare earth industry is currently undergoing consolidation, as well as China 's resource strategy is contrary . Therefore, the Chinese government is bound to appeal on this issue , the game is likely to be the result of both sides to compromise .


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Just earlier this week , the World Trade Organization (WTO) dispute settlement mechanism panel ( hereinafter referred to as Group ) v. United States and Japan will have Chinese rare earth export controls dispute interim report circulated made ​​parties to the dispute . Although the final report in 6-8 weeks may be released only after the world, but the media pointed out that the basic group of experts to support the U.S. , Japan and the EU against Chinese rare earth export restrictions policy violations aspirations. Japanese media have even publicly reported that the panel had found the United States , Japan and Europe for Chinese rare earth export controls to make a preliminary ruling proceedings , the plaintiff 's argument basically agree .

"In fact, the news had spread . China's accession to the WTO has been related to the time commitment is indeed a preliminary ruling against China . But right now , China can only continue to appeal. " Xiamen University, China Energy Economic Research Center Lin Boqiang told reporters that , " From the Chinese point of view, this matter not be anxious . "

Chinese respondent reason not being taken seriously

In fact, the United States and Japan and China on the issue of differences in the rare earth has been going on for several years, rare cases have also been consuming half a year - in March 2012 , the United States , Japan, Europe has three trade disputes brought to the WTO litigation request that the Chinese for 17 kinds of rare earths and tungsten and molybdenum export quotas and export duties and other restrictive measures imposed . After bilateral consultations failed to elicit solutions. September 2012 , established by the WTO Director-General panel to adjudicate .

But China is not willing to remain silent . But, one indisputable fact is: excessive production of rare earth will cause environmental destruction and hinder the industry 's sustainable development.

A survey shows that in the rare earth mine , the ore is mined around the end of the earth is no longer the growth of vegetation , and some even whole mountain has been hollowed out into a bald mountain . Jiangxi Provincial Industry and Information Commission had released the relevant data show that in 2011 , the entire Jiangxi Rare Earth Industry profits are only 64 billion yuan, 38 billion yuan of the huge "green arrears" is the year in Jiangxi Rare Earth Industry profits throughout 6 times.

Ministry of Commerce has repeatedly said that on the rare earth issue, China policy objective is to protect resources and the environment and achieve sustainable development, has no intention of trade-distorting way to protect domestic industries . China has always respected the rules of the WTO , and actively fulfill WTO commitments.

But the attitude is still strong in Europe and America . In fact, for resource exports , China is not the first nor the only one to take a quota system . According to Lin Bo , a lot of countries and regions on the export quota , the most typical example is the Organization of Petroleum Exporting (OPEC) oil-exporting countries .

America, Europe and well prepared

Outsiders expected , WTO Panel will , in consultation with the views of the parties concerned , the fastest in the final report released in mid-November . According to the process , the group of hearing the equivalent of " first instance ." If dissatisfied with the Panel 's report , China could appeal to the WTO High Commission for final decision .

However, the domestic industry is still on the case of the final result is not good, and let them generally pessimistic mood because, previously , there have been similar cases - the end of 2011 , the United States , Mexico and the European Union within the framework proposed by China in the WTO Trade dispute request , accusing China 's bauxite and other 9 kinds of raw materials to export quotas and export tariffs, price and quantity control , in violation of WTO rules . The outcome is - China 's appeal is dismissed.

In this regard, Shanghai Han Lu Lawyer Wang Huaitao analysis pointed out , WTO 's final report actually overturned a preliminary ruling concerning Chinese export license , the minimum export price requirements , export quotas and expense management constraints, but maintains a preliminary export taxes and quotas ruling core content rejected the Chinese environmental protection or supply shortages based on the preliminary ruling request an appeal .

" China has always stressed setting export quotas and export tariffs are designed to protect resources and the environment, and protection of natural resources, the WTO allowed, but only if such measures with restrictions on domestic production or consumption with implementation . At present , China has not yet done export quotas and the number of domestic consumption to maintain consistency . " Wang Huaitao that as usual, the decision that is likely to become rare cases the WTO ruling paradigm.

However , WTO principle, requires the elimination of export restrictions, but provides for two exemptions : "To protect people , animal or plant life or health measures " and " with the protection of exhaustible natural resources -related measures , Where such measures with restrictions on domestic production or consumption with the implementation . "

" Therefore, once the results are unfavorable to China , China should actively appeal. " Wanghuai Tao said that China should adhere to the" China 's rare earth policy measures taken for the protection of resources, environment and sustainable development needs of the country 's rare earth production and consumption necessary to limit , in line with WTO rules and exemptions . " Meanwhile, the Chinese supply of rare earth resources , environmental pollution, horizontal comparison on the rest of the world related to scarce resources export tax is also far more than the 10% level . To this end, China should be cited as the implementation of these two provisions justification of rare earth export restrictions and conduct horizontal comparison to illustrate the increase of rare earth export tariffs are reasonable.

Losing does not mean no way out

If the final ruling against China , China will likely open in the rare earth policy controls. Wangguan Tao said China's rare earth industry is no tariffs and export quotas , the price is likely to fall into the melee stage and lead to vicious competition is extremely conducive to environmental protection .

But Lin Bo pointed out that , even if unsuccessful , China is not helpless. " China's rare earth export quota system is in fact only in the industry consolidation is not completed in the case to take a policy response . Solely on the rare earth industry , the integration of related industries in China if carried out smoothly, sooner or later, the quota system is to be canceled . "

It is noteworthy that in the integration process, the Chinese rare earth industry is still faced with two problems , one is the environmental cost, the other is in the domestic and foreign markets are rare problems existed uncontrollability . " Originally , from a market development point of view , the more the more competitive enterprises , industrial development as possible. But it comes to exports of resource products is not so different , but is easier to enterprises bigger and stronger on the export price and size constrain . "In Lin Boqiang opinion, as long as the resource costs increase , rare earth prices will naturally will correspondingly. Meanwhile, if the taxes levied on domestic enterprises , rare earth prices will be increased. However , the most fundamental strategy or " from the inside ", that is the first domestic rare earth governance chaos , and then consider its foreign policy . Moment , the integration of rare earth industry's most important to get the full cooperation of the local government , so that the relevant national regulatory policies issued to really uplink .

It is reported that , WTO litigation fastest at the end of the outcome. However , according to regulations , adjust the new export tariff and quota policies can have a grace period of six months to one year , which may be later than the beginning of 2015, full liberalization of rare earth tariffs, quotas.


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Rare aside strategic resource property is not to say , of rare earth production to bring environmental pollution is a recognized fact . Therefore, aware of this problem , the Chinese began to restrict exports of rare earths is reasonable .

Although China is a big country of rare earth , rare earth resources is not the sole owner. The reason why the United States and Japan on this issue difficult for China , largely because the do not want to own domestic rare earth mining .

Environmental problems are not unique to China , but China is also on the deterioration of the environment around the world have been affected . Japan, South Korea had repeatedly condemned China 's haze caused harm to the country . Therefore, from this perspective, the WTO should not referee Chinese rare earth export restrictions violations.

According to British media reports, sources said , the World Trade Organization (WTO) has ruled that China 's rare earth export restrictions incompatible with the rules of the organization , which is Beijing's use of export quotas and tariffs as a tool of industrial policy approach was successful the second time challenges. WTO panel ruling has not yet officially released , but declined to comment .

England on October 30 reported that the lawsuit is from Japan, the United States and Europe filed . China and Japan have been tensions between intensified in 2010 , something happened that year highlights the Chinese international trade in rare earth minerals dominance ; rare earths used in high-tech and military equipment in the field . Also applies to the case of tungsten and molybdenum.

The ruling came after the news on the 29th , the Chinese Ministry of Commerce, an influential policy analyst , said Mei Xinyu , China is likely to appeal. "In my opinion , China is fully entitled to limit strategic resource or cause serious pollution of the earth so that energy -intensive exports. "

Reported that " rare earths " are 17 kinds of metal collectively. China is by far the world's biggest producer of rare earth , despite the high price of three years ago to promote Australia, the U.S. and the recent development of rare earth mine in Greenland started .

Reported that by 2010 , China has gradually reduced for several consecutive years rare earth export quotas to try to encourage the processing of these metals in the country completed . Second half of 2010 rare earth export quota plummeted comes as a Chinese fishing boat in disputed waters collided with Japanese patrol boats , resulting in a shortage of rare earth supply , pushing up prices sharply . China accused of an embargo on Japan .

China in the 1990s, joining the WTO negotiations , the focus of the negotiations is to remove barriers to imported products for China to allow foreign products to compete in the Chinese market . Since then, China has to raise or lower export taxes , and a variety of products export quota system , as an incentive or discourage domestic production capacity expansion tool. These measures mean that the price of certain products in China is far below the international market.

In 2011, the United States, Europe and Mexico in favor of WTO on China , that cases against China for a variety of industrial raw materials export quotas imposed , the case as a challenge to China's rare earth export policy set a precedent.

China insists that the export quota of rare earth mining and processing for the suppression caused environmental damage is necessary. However, in limiting exports, while China has encouraged domestic rare earth processing industry expansion, which led to the WTO rejected China 's claims.

At the same time , China and Inner Mongolia, Jiangxi has two rare earth ore reserves of control into the hands of a few state-owned enterprises to reduce unregulated miners caused environmental damage.


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October 24 , Legislative Affairs Office of Jiangxi Provincial Government organized in Ganzhou " Jiangxi Rare Earth Industry Regulatory Ordinance " legislative research symposium , to be brought to Jiangxi Province People's Congress legislative items included in 2014 . That the legislative proposal is to strengthen the rare earth resources management, effective protection and use of rare earth resources , establish a sound long-term supervision mechanism of rare earth resources , and promote sustained and healthy development of rare earth industry . The formation of the Ordinance and the legislation could better regulate Jiangxi Rare Earth resources exploration, mining, smelting and processing, management , transportation, supervision and management and other activities.


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October 28 , the Ministry of Commerce announced the 2014 rare earth export quota reporting conditions and reporting procedures . If launched from 1998 rare earth export quota license system date, this model has more than 15 years.

Now, the earth is facing a change in the quota system . Foreign media recently reported that Chinese exports of rare earths regulation triggered America, Europe and China trade litigation, WTO (WTO) has basically endorsed the idea of ​​America, Europe , and has issued a tentative judgment relevant national notice , finds China violation of the 2001 WTO accession agreement commitments.

October 30 , the reporter learned from authoritative sources , at present, government departments have already commenced discussions on the news , "message should be true ." The official said China is very difficult to restore the situation .

Chinese Ministry of Commerce and Ministry of Industry and so had repeatedly stressed that China adopt a quota system for rare earth and make industry consolidation , the purpose is to protect resources and the environment and achieve sustainable development , in line with WTO rules . The Chinese government has no intention of trade-distorting way to protect domestic industries .

Preliminary ruling unfavorable to China

Last March , the United States on China for rare earths , tungsten and molybdenum imposed export controls raised the question that these restrictive measures on these raw materials in the international market supply chains caused huge distortions and harmful interference. EU and Japan also made the request for consultations with China .

China has about 23% of the world 's rare earth reserves , but long-term supply more than 90 percent of global rare earth production. Previously few years, China's exports of rare earths has been executed rare earth export quota system , which annually clear domestic compliance with the relevant conditions of production and distribution companies in export volume , in order to protect resources and the environment and realize sustainable development.

Commerce Department released data show that China's rare earth export quota year 2010 a total of 30,258 tons , compared to 2009 decreased by almost 40% , while in 2004-2009 , rare earth export quotas of 66,000 tons , 66,000 tons , 62,000 tons , 60,000 tons , 47,000 tons , 50,000 tons , the annual amount did not exceed the 10% decrease .

"Foreign mainly aimed at China's quota system , which is not enough to use the problem is for this matter is reasonable . " Baotou a rare corporate executives interview with this reporter , said that earth is just " the beginning , "the lawsuit defeated, will involve numerous resources sector .

The parties, of rare earth quotas actually originated in the year of entry agreement , some of the rare element was not added attention and was not included in the scope of protection included in the negotiations , the Chinese did not realize at that time , and later found out, to come up with a quotas.

In fact, in some specific cases, WTO rules allow members to conduct export control , in which one out of non-renewable natural resources protection. But Europe and the United States put forward , if indeed out of this consideration , China 's restrictive measures should also be applied to China 's domestic production.

Multi- channel display , WTO has basically endorsed the idea of ​​America, Europe , and to notify the relevant national judge issued a tentative , finds a violation of 2001 China joined the WTO agreement commitments.

In the eyes of domestic rare earth enterprises , so that the results may not be an accident. "Even if you can appeal , but also a formality , there is not much practical significance. "These rare earth business people said.

Foregoing authorities also revealed that at present , government departments have already started discussions , but " even if unsuccessful , would not immediately abolish the quota ."

It is reported that the equivalent of first instance verdict WTO panel report in mid-November release , countries if satisfied with the ruling may apply to the WTO High Commission of Appeal.


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India October 30, 2013 report, the strongest storm in 14 years hit the Indian Phailin postpone the Indian producer of rare earth development plan , the plan helps to limit exports of rare earths in China even after ensuring global supply .

Indian Rare Earth Limited chairman and executive director of Patras in an interview with reporters , said the company in the eastern Indian state of Orissa factory and its surrounding area was October 12 landing Phailin storm hit, badly damaged . Delivery of 5,000 tons of rare earth oxides in February next year will be postponed , a full postponed four months.

After China , India is following increased supply of rare earth , Chinese exports of rare earths to meet the needs of more than 90% . For the protection of resources and the environment , China started from 2007 rare earth export quota management . India plans to postpone rare earth production , the impact of the Toyota Group, a subsidiary of Toyota Tsusho Corporation 's rare earth supply . Defense equipment , wind turbines , hybrid cars , color flat-panel TVs , smart phones and so need 17 of a group of chemically similar elements - earth to produce. India more emphasis on renewable energy power , high-tech flat-screen TV and telephone needs, the more dependent on rare earth production . Toyota Tsusho Corporation to supply rare earths is stipulated in the agreement between the two governments content. Just start production in India on rare earth exports to Japan .

Restrictions against China rare earth shipments , U.S. , EU and Japan in March last year complained to the WTO China .


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Baotou Steel Rare Earth 31 in its official website announced , quoted prices of rare earth oxides , which , neodymium oxide, praseodymium 370,000 / ton, praseodymium oxide 600,000 / ton, neodymium oxide 350,000 / ton, europium oxide 5 million / ton.

According to the reporter , the Baotou Steel Rare earth oxide publicly listed prices are higher than the current market price. Currently, the market price of neodymium oxide, praseodymium is 33 million / ton, praseodymium oxide was 560,000 / ton, neodymium oxide is 32-33 million / ton, europium oxide was 4.8 million / ton.

Rare analyst Du Shuai Bing said publicly listed Baotou Steel Rare earth oxide price , meaning earth started purchasing and storage . By convention , the general first corporate purchasing and storage , and then the state purchasing and storage . However, purchasing and storage price may change once a month last year, Baotou Steel Rare Earth twice within a listed price movements . But in general , the state purchasing and storage price will be higher than enterprise storage price . At present , although not an official state purchasing and storage of documents issued, but no later than December of this year should be a formal purchasing and storage news.

Concern tens of billions of state purchasing and storage plan in October the news recently launched frequent . According to sources , this is mainly for large-scale purchasing and storage of rare earth rare earth enterprises, especially state-owned enterprises , purchasing and storage products 4000 tons neodymium oxide, praseodymium oxide, praseodymium , neodymium oxide, each 500 tons , 1200 tons of dysprosium oxide , or 1,500 tons , erbium oxide 300 tons , also plans Shouchu europium oxide, terbium each 500 tons , 2500 tons of yttrium oxide or 2000 tons , and lutetium oxide , a total of 10,000 tons or more , and the country will be slightly higher than recent market prices purchasing and storage .


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October 31 rare earth products price quotes

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World Trade Organization (WTO) dispute settlement mechanism panel 's interim report completed last week ruled that the support of the U.S. , Japan and the EU against Chinese rare earth export restrictions policy violations aspirations. This means that China 's rare earth in concern on the case could end up losing .

Newspaper on October 28 learned from reliable sources , the group 's interim report on the rare earth dispute (Interimreport) has been distributed to parties to the dispute , the report is not currently open . The final report may be 6-8 weeks after the formal public .

The case took more than a year and half . United States, Japan and Europe in March 2012 Tripartite has brought to the WTO trade dispute claims that the Chinese for 17 kinds of rare earths and tungsten and molybdenum export quotas and export duties and other restrictive measures imposed . After bilateral consultations failed to elicit solutions. September 2012 , established by the WTO Director-General panel to adjudicate .

In accordance with the dispute settlement procedures , the group will be in two weeks time another open meeting with the parties , review the aforementioned interim report. If China dissatisfied with the Panel report , still have the right to appeal to the WTO Appellate Body .

Rare case is Japan's first directly against China in the WTO dispute settlement demands put forward . Rare is called " industrial gold", in the high tech industry is indispensable. Japan is a big demand for rare earths , rare earths in China has been seeking alternative sources of supply .

Europe and Japan and China on the issue of differences in the rare earth have been carried out for several years. China has always insisted that the excessive production of rare earth will cause damage to the environment , hinder the sustainable development of rare earth industry .

In certain cases, WTO rules allow member states export controls , one of which is out of non-renewable natural resources protection. But Europe and the United States suggested that if indeed out of this consideration , both inside and outside China 's restrictive measures should be treated equally, also applied to China 's domestic production.

Similar offensive also appears in the case of export of raw materials , which is to promote the United States and Japan jointly proposed tripartite background of one of the rare-earth litigation . WTO ruling in 2011 by the end of China's bauxite, coke , magnesium and other 9 kinds of restrictions on exports of raw materials policy violates WTO rules .

The dispute resolution by the European Union , the United States and Mexico presented . An EU official told the newspaper that since this ruling , " the establishment of a legal precedent for future cases can be specified direction ."

The Chinese side has repeatedly stated that the above minerals export controls for environmental reasons . WTO Panel Report that China is only export restrictions , without taking measures to limit the use of these materials and their industries , whether short-term or long-term will not be able to export quotas and tariffs proved to reduce environmental pollution.

"The two lawsuits highly relevant ", located in Brussels, the international political and economic center (ECIPE) Director Frederick Eriksson (Fredrik Erixon) also believes that the raw materials ruling gave Europe the confidence to make them I believe the WTO rare earths policy will also help to make Europe 's ruling.

Professionals in China had also expressed pessimism . According to reports, the Chinese Rare Earth Society and other professional bodies stakeholders in mid-August , Jiangxi Ganzhou Rare Earth conference that ( rare cases ) a greater chance of losing China , Chinese rare earth export policy faces major changes.

The report said , Ganzhou Rare Earth conference shortly before the Chinese Society of Rare Earths relevant agencies should be required to provide to the WTO once material . Experts said that the abolition of export quotas may impact assessment has begun . The outcome may be losing China rare earth quotas cancellation policy , open the supply of rare earths , the government can not constrain the export business behavior .


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After years of state governance, the degree of concentration legitimate field of rare earth has been significantly improved , China's supply of rare earth have become legitimate shrink year by year trend, so we think it would continue to focus on the future core of rare-earth policy against illegal rare earth and the formation of a large group , then the industry fundamentals expected situation improves , rare earth prices will rise so full recovery , corporate earnings will bottom out .

1 . Introduction

Magnetic material is very versatile and functional materials steeped in history , its basic component is made of iron , cobalt , nickel, three kinds of ferromagnetic elements. As early as 3000 years ago , the ancient Chinese invented it out with a magnet ; while modern life, magnetic materials are used in many fields, such as motors, transformers, memory, etc. . Permanent magnetic materials and soft by nature into two categories , the former mainly ferrite and rare earth alloys , which are mainly soft ferrite materials.

In recent years , the global production of magnetic materials as well as relying on electronic technology and the rapid development of environmental technology drastic growth. 2006 to 2012 , the global production of permanent magnetic materials and soft magnetic materials at a CAGR of 9% and 19%. The Chinese production of magnetic materials has been ranked first in the world . 2012 , China's output of about 600,000 tons permanent magnet materials , accounting for 75% of the global market capacity ; production of soft magnetic materials is about 370,000 tons , accounting for about 70% of the global market capacity . With the new materials "Twelfth Five-Year Plan " in the magnetic material to give development planning, as well as the state will vigorously support emerging industries such as policy background, combined with the current low-carbon and green economy, sustainable development , magnetic materials industry structure will appear sexual adjust and take off the whole industry chain linkage .

2 . Permanent magnet materials opportunities and challenges

2.1 Introduction
permanent magnet materials
Magnetic materials , also known as hard magnetic material , is a broad hysteresis loop , high coercivity , high remanence , once the magnetization is able to maintain a constant magnetic material . Permanent magnet materials can be divided into : ① alloy permanent magnet materials, including rare earth permanent magnet materials , SmCo, alnico ; ② ferrite permanent magnet material . Including rare earth permanent magnet materials and can be divided into: the first generation of permanent magnets ( SmCo 1:5 type alloy ) , the second generation of permanent magnets ( 2:17 samarium -cobalt alloy ) , and the third generation of rare earth permanent magnet alloy ( NdFeB alloy ) . As science and technology updates faster and faster replacement , permanent magnet materials applications as performance is being improved constantly expanding .

2.2 energy saving spawned increased demand for rare earth permanent magnet materials

With the " Kyoto Protocol" entry into force , the world of increasing environmental awareness , coupled with China is accelerating the pace of construction of a conservation -oriented society , resulting in the demand for rare earth permanent magnet materials will become very strong , according to the Chinese Society of Rare Earths forecasts, 2015 world's rare earth demand will reach 21 million tons, average annual growth rate will reach more than 8% . And in the rare earth permanent magnet materials most noteworthy is NdFeB magnetic materials . As excellent magnetic NdFeB and known as " Magneto " and is widely used for new energy vehicles , energy-saving elevator , wind motor , inverter air conditioner , EPS, mobile phones and other fields, but will face even greater opportunities.

2.4 Ferrite supply and demand would stabilize

Permanent ferrite magnets with uniaxial anisotropy is a hexagonal structure of the compounds . Ferrite magnet having a homosexual and heterosexual magnetism of the points, according to the production process can be divided into sintered ferrite magnet and bonded ferrite . Ferrite material in the outside world after the disappearance of the magnetizing field , still retains a strong long time constant remanence properties , can be used to generate the external space Steady magnetic field.

The application areas of permanent ferrite mainly concentrated in the low-end markets, such as FB4 products rarely applied in the high-end market , but as a substitute for NdFeB magnets , the future market capacity there is much room for improvement . According to the Ministry of Information Industry forecasts based on data show that in 2012 China's demand for permanent ferrite is 741,200 tons , is expected to 2015 , China's various industries for permanent ferrite total demand will reach 86.45 tons , the annual compound growth rate of 24%.

Ferrite stage downstream demand more for the automotive industry, computing and industry, toy industry , household appliances and electro-acoustic industry , and with the Chinese auto industry to thrive in recent years , the rapid development of the computer industry and the state of the appliance under Township policy subsidies and other favorable factors have stimulated the demand for permanent ferrite rapidly expanding . So the next few years , the domestic market of the magnetics are good prospects .

The supply side , the current permanent ferrite main producing countries including China , the United States and Japan . But as environmental awareness and environmental needs of the expansion and the production costs increase, production began declining in developed countries and is mainly concentrated in the high-end products. While the production of low-end permanent ferrite body has shifted to China . 2005 production of ferrite is 35 million tons, accounting for about 50% of global production ; 2012 permanent ferrite worldwide production of about 980,000 tons , while China's output of 65 million tons, and the expected future two years of hard ferrite yield compound annual growth rate will reach 13 %, the overall growth in a stable range.

At present, China 's production capacity of the industry is still very low concentration , the top five companies in the market share of only about 30%. Most companies also are in the small scale production of small case . Magnetic materials and devices according to the National Industry Association released information indicating that China's current number of permanent ferrite is about more than 200 enterprises , of which 1,000 tons annual output of 75% ; 1,000-3,000 tons annual output of enterprises accounted for 15 percent ; production in the 3,000-5,000 tons of the total number of firms in the industry for 7% of the number of enterprises ; annual production capacity of more than ten thousand tons level only a few companies , accounting for about 3% of the total .

In such circumstances, permanent ferrite industry will usher in a good season. Shift from a fully competitive industry is monopolistic competition , industry concentration will be improved. By then , mergers, expansion, new will become a trend in the industry . Therefore, we believe ferrite overall industry will enter a stage of industry consolidation . Although China's annual production is consistent with the annual demand , but because of the demand for downstream enterprises is gradually increased, and growing faster than the supply rate , plus expensive NdFeB permanent ferrite is the optimal alternative to seeking future greater than the supply situation is likely to occur .

3 . Soft ferrite materials demand potential

3.1 Introduction
soft ferrite materials
Soft magnetic material , refers to the remanence and coercivity are very small ferromagnetic material , such as silicon , iron , etc., which is characterized by easy magnetization are susceptible to demagnetization , it is widely used in electrical and electronic equipment , such as 4G devices, network devices, and display assembly areas . Currently the application of soft magnetic materials with soft ferrite majority, by purpose and materials can be divided into four categories: ① MnZn power ferrite materials ; ② communication and electromagnetic compatibility (EMC) with high permeability MnZn iron ferrite material ; ③ deflection coil MnZn ferrite materials ; ④ RF broadband and electronic interference (EMI) suppression of nickel zinc ferrite .

3.2 Future demand will increase ferrite

Present information industry development faster and faster, and has become an important pillar of the world economy industries, so as an important foundation for the information industry functional material ferrite has become the world's new materials industry an important part , but soft magnetic ferrite materials demand is bound to continue to increase. According to China Association of magnetic materials and devices industry forecasts , in 2012 our ferrite materials market demand will reach 430,000 tons , accounting for 70% of total world demand . So soft ferrite materials will face new historic opportunity.

Gradually increase the intensity of rare earth industry consolidation

As the worldwide total reserves of rare earth resources, 100 million tons of industrial , China accounted for 36% of world reserves , is 3,600 tons ; 2012 global NdFeB production was 9-11 million tons, while China's output to reach 8-9 million tons, total output of other countries, only 1-2 million tons. Therefore, China is the largest producer of permanent magnet materials , including rare earth production, exports and consumption volume ranked first in the world . In other words , the global annual consumption of about 10 tons of rare earth is mainly relying on our supply .

In fact, China 's rare earth extraction annual targets set limits , but a few years ago and not well executed. The reason is that a long time, in the eyes of the developed countries is deemed to be national strategic resources and rare earth protection measures , the United States, 2011 U.S. rare earth reserves of 1,300 million tons, but production has only zeros. The rare earth resources in China is being used as a tool for foreign exchange . Therefore, driven by economic interests ,2005- 2009 five-year period , China's rare earth production for more than 100,000 tons , of which 2008 production of rare earth is as high as 124,800 tons . Exports rose at the same time also led to over-exploitation of rare earth in China , based on reserves of a significant slowdown .

The government cracked down hard on illegal rare earth out of private mines, especially in Ganzhou Rare Earth private mining crackdown , resulting in recent rare earth prices rebounded sharply incentives. Praseodymium, neodymium rare species like the price rose to varying degrees . Among them, praseodymium oxide from the mid-year 371,000 yuan / ton, up from the current 570,000 yuan / ton, or more than 50%. After many years of both national governance, the degree of concentration legitimate field of rare earth has been significantly improved , China's supply of rare earth have become legitimate shrink year by year trend, so we think it would continue to focus on the future core of rare-earth policy against illegal rare earth and the formation of large groups , the basic industry expected to face the situation improves , rare earth prices will rise so full recovery , corporate earnings will bottom out .


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