Tag: rare earth overcapacity

First, there is still severe overcapacity in primary products of rare earth. Though capacity of rare earth smelting and separation has decreased from 400 thousand tons to 300 thousand tons by integration, overcapacity is still a serious problem compared to 105 thousand tons of final production volume. In addition, illegal exploitation still exist driven by massive profits. Environmental disruption caused by illegal exploitation is not added into value of products, causing oversupply and low price of rare earth. Second, inner competition of the industry is too fierce under the circumstance…