The hottest six rare earth groups take multiple me

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After six rare earth groups took multiple measures to limit production and protect prices to compete for rare earth pricing power

gained the initiative in the pricing of iron ore, domestic rare earth enterprises also tried to grasp more pricing discourse in the transaction. Recently, affected by the low price of rare earth products for a long time, the six major rare earth groups in China have successively announced that the brittleness of glass wool exceeds 350 ℃ and announced the implementation of production restriction and price protection measures, with a reduction of 5% - 12%. This action is regarded as an important measure to enhance the pricing power of rare earth in China. The industry believes that China is currently accelerating the integration of the rare earth industry, gradually forming the dominant pattern of the six rare earth groups, and is competing for the pricing power of rare earth through measures such as controlling output, levying resource taxes, and cracking down on black rare earth

On October 12, the leading domestic rare earth enterprise northern Rare Earth took the lead in issuing the announcement of limited production and guaranteed price, saying that in view of the current situation of the continuous downturn in the rare earth market and the long-term low price of products, the company decided to implement limited production and guaranteed price, and the annual production of smelting separated products was reduced by about 10% compared with the 2015 Rare Earth total control plan index issued by the Ministry of industry and information technology

followed closely, Xiamen tungsten, another domestic rare earth enterprise, also announced to follow up the production restriction and price guarantee, and also decided to reduce the annual production of smelting separation products by 10% compared with the index of the Ministry of industry and information technology. After the two enterprises, Nanfang rare earth, Guangsheng nonferrous metals and Minmetals rare earth have also successively announced that they plan to implement measures to limit production and protect prices. In addition, China's rare earth also announced to join the ranks of limiting production and ensuring prices in 2013, and plans to reduce production by 5%-10%. So far, China's six major rare earth groups have all joined the camp of limiting production and ensuring prices

driven by the joint efforts of six rare earth groups to limit production and protect prices, the market price of rare earth has risen sharply recently. Since October, praseodymium and neodymium oxide have increased by 14.5%; Dysprosium oxide rose by 13.2%; Terbium oxide rose 11%. Relevant manufacturers are optimistic about the future market. In an interview with Beijing business daily, Yuan Zhibin, a researcher in the metallurgical industry of CIC consultants, said that the six rare earth groups' limited production and guaranteed prices are conducive to reversing the situation of low price increases in China's rare earth exports, and thereby enhancing the pricing power of Chinese enterprises for rare earths

large rare earth countries lack pricing power

China is one of the countries with the most abundant rare earth resources in the world, and the proven rare earth resources are about 65.88 million tons. China's rare earth industry ranks first in the world in terms of resource reserves, output and sales volume

however, as a major rare earth country, the price of rare earth products in China has long been controlled by foreign merchants. From 1990 to 2005, China's rare earth exports increased by nearly 1 times, and the problem of structural excess capacity became more prominent 0 times, but the average price was reduced to 64% of the original price. Zhang Wei, a rare earth analyst at zhuochuang, pointed out that the main reason for China's lack of rare earth pricing power in the past was overcapacity. Basically, each province has its own rare earth company, and its production is also independent. There is malicious competition during export, driving down prices

in order to change the current situation that it is difficult to control pricing power, China has implemented export quota restrictions on rare earth products since 1998, and has basically formed a policy system of rare earth price regulation for many years. In 2007, the state issued a series of policies to restrict the export of rare earth products, such as imposing export tariffs, and the export price of rare earth once rose to an all-time high of nearly $17/kg. Before 2009, rare earth regulation was mainly based on the policies of limiting output and export, supplemented by various policies of industry integration

however, under the appeal of the United States, Europe and Japan, China has cancelled the export tariffs of rare earth, tungsten, molybdenum, steel particle powder and other products since May 1 this year. With the abolition of quotas and tariffs, China once again lost its pricing power over rare earths. In the first half of this year, data from the General Administration of Customs showed that in the first eight months of this year, 5820.6 tons of rare earth were exported from the Shanghai Customs District, an increase of 25.5% over the same period last year; The value was 770million yuan, an increase of 8%; The average export price was 133000 yuan per ton, down 13.9%

tax means help grasp the pricing power

therefore, how to regain the pricing power has become an urgent problem facing China's rare earth industry. Xin Guobin, Vice Minister of the Ministry of industry and information technology, said at the seventh China Baotou rare earth industry forum, which opened in August that the Ministry of industry and information technology is actively promoting the establishment of six large rare earth groups, including Chinalco, northern rare earth and Xiamen tungsten, The development pattern of rare earth industry dominated by large groups is expected to basically take shape by the end of this year

it is not affected by humidity. According to Xin Guobin, 77 of the 78 rare earth mining licenses in the country have been integrated, and 77 of the 99 rare earth smelting and separation enterprises in the country have been integrated. In the coming period, six large rare earth groups will further accelerate the restructuring of all rare earth mines and smelting separation enterprises in the country, especially to achieve substantive integration

Bai Ming, deputy director of the international market research department of the Research Institute of the Ministry of Commerce, said that after the cancellation of rare earth configuration and tariffs, China plans to set up a large rare earth group to regulate the market by cracking down on illegal mining and issuing rare metal management regulations, so as to avoid the rare earth market returning to the period of low price competition. "The previous quota system was more inclined to export control. As China is a member of the WTO, the quota system is easy to teach people. By accelerating industry integration and forming a pattern dominated by the six rare earth groups, it is not only conducive to improving the production efficiency and environmental protection level of the rare earth industry, but also can control the pricing power by controlling the upstream output." Zhang Wei said

in addition to output control, rare earth resource tax collection is also regarded as an important means to control rare earth prices. In May this year, China launched the reform of resource tax on rare earth, tungsten, molybdenum and other resources, changing from ad valorem to ad valorem, solving the tax problem that has plagued the rare earth industry for a long time. Wu Haiming, chairman of Meizhou Lingnan rare earth products Investment Management Co., Ltd., said frankly, "raising the mineral resources tax can not only increase fiscal revenue, but also support and compensate enterprises in environmental remediation and protection. At the same time, it can increase the export price of rare earth by raising costs."

in Yuan Zhibin's view, China's Black Rare Earth is rampant. Last year alone, the output of black rare earth was much higher than that of the two major enterprises with the output of several thousand tons, reaching 40000 tons. Therefore, in order to regain the pricing power of rare earth prices, we must severely crack down on black rare earth to prevent them from disrupting market prices

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