Sunday, February 17, 2013

China Rare Earth Industry Self-Help has Many Difficulties


Chinese rare earth market situation

Since August last year, the Chinese rare earth tends to decline in both exports and domestic sales, not only the prices fall, production and sales lower, many traditional industries use rare earth cannot afford the high prices make rare earth costs rise, corresponding atrophy or alternatively reduce rare earth dosage. In April of this year, the price of rare earth has risen slightly, but stop soon in May. Particularly the lanthanum cerium accounting for about 75% rare earth elements is more apparent. In the case of the European debt crisis and the too high rare-earth prices, the export quotas also failed to complete in the first half of this year. Currently, the price has dropped to close to the level of April 2011, and the market still did not improve.



Expand domestic demand is imperative for China's rare earth industry development

Wang Zhongshan, vice chairman of the Nanjing Research on Rare Earth, said that after all, the rare earth is a small industry in the national economy; it causes trouble and impact to a wide range of industries. Some industries that originally use rare earth do the additives, modificators or functional materials instead look for other alternatives, or simply do not use the rare earth. Export has also lost some market. If not timely adopt policy to response, it is inevitable for China rare earth development step into the vicious cycle, the Chinese rare earth manufacturer will again face trough. Wang Zhongshan thought that making efforts to expand domestic demand and fight for the international market is imperative for China's rare earth industry development.



Domestic demand is the driving force for China rare earth

Wang Zhongshan thought that domestic demand is the driving force for China rare earth from discovery, development to the scale of production, application, and foreign trade accounting for the world's first, while domestic demand was originated from the promotion application in the 1980s. The Chinese rare earth develops and grows in the planned economy and market economy coexists period. In the early 1990s, low-cost development, sell foreign exchange earner, the market was formed in such circumstances. Low price and value deviation of rare earth in the past have objective reasons. The promotion and application is struggle for the annual number of rare earth as indicators.



Recommendation for China rare earth industry development

Although China rare earth production and export rank Top 1 in the world, there remains the gap in rare earth technology and the application with the world advanced level, which is also insufficient in saving rare earth materials application, applications, application process, etc. The rare earth supplier should have a long-term vision, and know the truth that lose domestic demand will loses survival, and it is recommend that the state play the role of the repository, purchase and store rare earth ore and products at reasonable prices, activating rare earth enterprises to develop steadily. When expand domestic demand, the temper justice with mercy export policy should be implemented, to maintain the China rare earth’s leading position in the international market.

www.rareearth-china.com is committed to the production,research and development, sales ceramic raw materials and cerium oxides and other rare earthe materials for chemical industry, as well as chemical raw materials for glass-ceramic.



More about my article, you also can read:http://blog.oricon.co.jp/industrialrawmateria/

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