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- China's rare earth policy adjustments pushing the industry to adjust to upgradePublished??2012??11??28??
- Foreign media said the Chinese worry about the rare earth producers to take the the hardline threat to its dominance in the global market, thus rare earth policy adjustments.
According to the British "Financial Times" website reported on November 22, described the move to "promote the orderly development", will provide direct subsidies to help struggling manufacturers recovery.
Subsidy policy reflects the significant changes of the past two years, China's rare earth policy, its focus is limited to rare earth production, shutting down the illegal mining sites, as well as tight control of exports. These moves lead to price volatility and the slowdown in global demand.
China Rare Earth Industry Association Deputy Secretary-General Chen Zhanheng said, this will contribute to the development of government support of large-scale state-owned holding rare earth companies. He said: "In the long term, the policy can promote the conservation of resources and the effective use of rare earth. (Subsidies) to support technology upgrades, energy conservation and environmental protection."
The mine mining subsidies have a license of rare earth mining and smelting enterprises according to the new subsidy program, will receive 1,000 yuan per ton and 1,500 yuan per ton smelting separated subsidies.
Reported that, although the amount of the subsidy is not huge, according to the calculations, the average annual subsidy of the rare earth industry roughly between 35 million to 40 million U.S. dollars, but a move to highlight the adjustment and upgrading of China's rare earth industry determination to make the country the price with suppliers to take more control. In the past year, regulators encourage hoarding of rare earth, to help push up prices.
Due to the foreign alternative rare earth supply growth, the domestic producers have begun to stop production and report the loss, the dominance of China in the global rare earth market is weakening.
The report pointed out that China has caused a near monopoly in the areas of strategic concern, especially the United States and Japan, the suspension of rare earth exports to Japan during the 2010 diplomatic dispute. This incident as well as to the broader concerns of China's rare earth supply reliability, triggering an investment boom of the rare earth mines outside of China, including some rare earth mine will be commissioned early next year.
Dudley Kingsnorth of rare earth consulting firm Imcoa rare earth production outside of China will grow 10-fold in five years, increased from 6,000 tons in 2011 to 60,000 tons in 2015.
Reported that high prices and uncertain factors have eroded global demand, with China's rare earth industry in the past two years to rectify. The Chinese government says it has been trying to strengthen the national regulatory rare earth industry, in order to prevent the deterioration of the environment and illegal smuggling, regulatory agencies have already taken positive action to combat illegal mining accounted for a considerable share of China's rare earth production.
These policies have led to a drop in demand, the prices are low, due to the adverse market situation, prompting the shutdown of two of China's largest rare earth production part.
"Japanese Economic News" reported on November 23 that China's largest rare earth producer, Inner Mongolia Baotou Steel Rare Earth (Group) Hi-Tech Co., Ltd. announced on 22 May, will be subordinate to the part of the plant shutdown time extended by one month. Previously, due to the rapid decline in demand, the company has decided its two factories located in the largest province of southern China Rare Earth Jiangxi discontinued one month starting from October 23. Due to the oversupply situation has not yet been alleviated, make a continue discontinued decision.
Discontinued factory is mainly responsible for the dysprosium metal refining and processing, dysprosium is an essential raw material used in the production of high-performance hybrid engine. Baotou Steel Rare Earth sales fell in the third quarter of this year, the price collapse over half net profit by a whopping Jiucheng.
It is reported that China has in fact stopped the exports of rare earths to Japan, some rare earth demand large Japanese companies began to accelerate the development of alternative products, resulting in a sudden drop in China rare earth demand. China's rare earth production reached the pinnacle in 2006 when 16 million tons of production this year is expected to be only half in 2006.
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