Pork Export Value In China's Rare Earth Industry Is Even Lower

2009, China rare earth industry is still carried on a downturn.Yesterday, China's largest enterprise Baotou Steel Rare Earth published a semi-annual report data, in the first half loss of 67.1871 million yuan, up 127.19 percent drop sharply. In 2008, Baotou Steel Rare Earth combined Sell 5.4 million tons of rare earth products, which is approximately equivalent to half of global demand, but sales of only 3.225 billion yuan, net profit was only 169 million yuan. "Middle East Oil China has a rare earth ", at present, China has proven reserves of 83.89 million tons of rare earth (RE oxides), accounting for 56% of the world's total reserves, while a single high-purity rare earth production has occupied 90% of global share.

However, OPEC's oil tycoon extremely wealthy by controlling the global market when oil prices as the world's largest rare earth resources in the country, rare earth producer, consumer and exporter, China's rare earth companies have long to relatively cheap price of exports, passive maintain modest profit. "Securities Daily" reporters days after the investigation found that rare earth export value in pork due to the low rare earth industry in a similar lack of CNOOC, CNPC, Sinopec this monopoly enterprises, which are disordered around the mining of rare earth In another game to the Japanese export price cut, so the lack of resources available in Japan two years storage of the rare earth. Rare earth export value in lower porkEarth known as the "industrial vitamin" because the rich light, electricity, magnetism, superconductivity, catalytic activity of outstanding performance, rare earth is widely used in advanced technology areas and military areas, become an irreplaceable high technology and military strategy elements. However, a long time, China's rare earth are in "or cheap" position.

Rare earth products in 1998 export quota system startup, the Chinese Rare Earth exports increased 10 times, but the price was reduced by 36%. 2006 years, China has increased its management, and began a "rare-earth ore mining, processing and export," the regulation. Since 2007, restrictions on production of 80,000 tons of rare earth, less than the world's demand for 100,000 tons. This was announced after the 2006 price increase of 1-3 times the Earth, 2007, has been to remain relatively high. While the export volume, have declined year by year, from 53,300 tons in 2006 dropped to 34,600 tons in 2008. The current trend of declining prices of rare earth can be controlled, but still below the 1985 level. The excess capacity, competition caused by cheap exports disorder is caused by the development of long drooling. Development and construction of China's rare earth industry has been 50 years, but because technology, the business community's awareness of intellectual property protection for the weak, which originally only in Baotou, Shanghai and the Pearl of three state-owned manufacturers to promote the separation of rare earth, quickly spread to local and private enterprises. Up dozens of factories as much production capacity of 12-15 million tons, 100,000 tons more than world demand. Our famous "RE Father,"

Academician Xu Guangxian that the situation "caused by the oversupply of RE prices artificially low. So that no national interest of rare earth industry is facing a difficult dilemma." "We have a lot of subsidiary production of rare earth, rare earth and many other manufacturers, we are producing similar products, are independent of external, shop around, holding a list of various inquiries, Which cheap to buy Which, so we have no right to speak. This is why the earth is only sold a land price. "leading business executives, a rare earth has told reporters. According to the latest position on August 20, purity 99% -99.9% of the price of oxidation Lan only 20,000 -2.3 million / ton, samarium oxide is about 17 000 per tonne; slightly expensive and a little oxide, praseodymium oxide Neodymium can only sell more than 80,000 yuan per ton.