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Rare earth maintain high prices will threaten downstream industryPublished??2011??07??11??

    This year, the rare-earth prices rising at an unprecedented rate. Compared with the year, the rare earth concentrate and rare earth oxides and metals prices rose by roughly 6 to 10 times the price leader in products such as praseodymium neodymium metal prices now reached 150 yuan / ton, europium oxide highest 3 million / kg of yttrium europium-rich ore up to 53 yuan / ton.
Why have such a large increase of rare earth, reason about the following. The first is to implement the state's control of rare earth industry, policies and measures to rectify and get cured. Such as the release of 22 countries the implementation of minerals and smelting mandatory separation of products and resources to plan an effective implementation of tax levy and so on. Second, the local governments to increase control of the source of rare earth resources, such as the Inner Mongolia Autonomous Region Government responsible for managing the implementation of the earth, Jiangxi Ganzhou all mining permits and mining company focused on the implementation of five reunification. Third, all enterprises to strengthen the backbone of rare earth resources, production, price management and consolidation. Fourth, the face of rapid price increases could be overwhelmed, many companies and even individuals hoard of rare earth. Fifth, some companies continued to rise still higher price expectations, which are reluctant to sell state of mind. Of course, we also want to see the hype factors. Because of these various factors, as well as the superposition of various factors and the multiplier effect, the inertia in the prices can not be restrained in the case finally led to immediate price or price.
For a long period of low prices of rare earth in the past that the price of cabbage, pork price, the reasonable price of rare earth and rare return is necessary. In addition to the price of rare earth containing the basic cost, reasonable and even higher profits, but also fully embodies the properties of their rare and precious resource, should the rare earth mining, smelting and separation of the ecological damage, environmental pollution and to consider very fully apportioned accordingly cost, existing resources are apportioned tax elevate prices. All aspects of the past two years due to the rare-earth prices return to a better level, this should be worthy of full recognition.
Reasonably high level of rare-earth price, bring a lot of positive impact and beneficial effects. If help improve resource utilization, separation of business from mining to smelting are doing everything possible to "eat dry pressing to do," to maximize yield. Conducive to increased investment to address the troubled years of environmental protection. Conducive to technological progress of enterprises. Especially for the application of rare earth companies, buying low-priced rare case of a production of low-end products to a thing of the past. Today, applications must improve the grade specifications, the valuable heavy rare earth rare earth, especially in high value-added products used in the production, promote the application of the core enterprises to improve product competitiveness, and accelerate the application of business re-shuffle.
But everything has a degree, the price of rare earth from the cabbage to high price, from one extreme to another extreme, unreasonable, and it is not sustainable. Do not you see, price under the application of business one after another cut half-cut; price under cultivation for many years devoted themselves to the rare earth permanent magnet represented by the four application industry has become increasingly shrinking; price below many downstream applications of rare earth companies Rare earth and not be forced to seek alternatives. Recently, more than half of Ningbo enterprises have ceased production of rare earth NdFeB half cut; wind power company finally began struggling small permanent magnet direct-drive, are now no choice but to go back, nothing more than the original point of bulky gear only; Rare earth nickel-metal hydride batteries powerful lithium-ion batteries can now rival triumph; the application of rare earth three basic dye has strobe lights, many of the industry reflects the high price of rare earth raw materials for lighting industry, energy conservation and efficiency may be difficult now ; even with sub-low price with high rare earth polishing powder industry also reflects the use could not afford.
Should be careful analysis, if the price is still maintained, and even then climb up what would be a prospect. First, companies can not afford a considerable part of the application, there are alternatives to low-end products, many applications may not rare, such as ferrite instead of NdFeB. Continue to use but greatly reduced the amount of high-end, high-priced and delivered to the application of the device is very difficult to be recognized, now is not good NdFeB contract signed. River upstream product market applications, users do not, the market lost, how raw materials from the office enterprise? Moreover, today's rare-earth really is no shortage of goods available for sale to price it? Nothing more than hoarding plus reluctant sellers. If you do not pick the next home plate, the product can not always be piled in the library, right?
In a market economy, between the upstream and downstream, between the supply and demand, will always be interdependent relationship, always prosperity to the interests of community relations damage. We want to make money, profits in the chain between the rational distribution and equal opportunity, community is on the sound development of downstream industries, the essence of sustainable development, has been true of all times, contrary to economic laws sooner or later health problems. Besides if long-term maintenance of price, then the State need the windfall tax or environmental levy special taxes, and for the separation of business from mining to smelting ecological restoration, land and water, gas, slag harmless treatment.
Able to price quite rare voice of the upstream and medium-sized enterprises, both the central level, state-owned enterprises or private enterprises, should have the appropriate social and play a major concern. This is the attention to and solve rational and efficient use of resources; attention to and solve the energy saving; serious tax to repay the country, expanding employment and to facilitate the people's livelihood; credit management, standardize the market; promote technological progress and industrial upgrading; participate in public welfare and so on. There is the concern of this paper to stress, support the development of downstream business applications, extend the industrial chain, in the rare earth industry bigger and stronger in the historical process, and application of rare earth business interdependence and common development.

ZheJiang DongYang Strong Electron Co., Ltd

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