Second, inner competition of the industry is too fierce under the circumstance of serious overcapacity. Although production capacity of rare earth is integrated by the six large groups, subordinate manufacturers of them still have many independent decision-making units. In the market with oversupply, fierce competition among rare earth enterprises contributes to low international price. Individual decision-making do not consider environmental value and rare strategic value of resources, causing a mismatch between price and value. As an important strategic resource, rare earth in China is still mostly exported at a low price, equivalent of subsidizing other countries with domestic resources and environmental devastation.

Third, industry chain of rare earth industry is to move up. On the whole, rare earth industry in China is at the low end in global industry chain. Nearly 50% of rare earth production volume in China is exported as raw materials. Export volume of rare earth in 2016 was 47 thousand tons, most of which is from provinces including Inner Mongolia, Sichuan and Jiangsu. Major destinations of rare earth export are the U.S, Japan, and EU countries like Netherlands and Germany.

Forth, levels of resources and environmental protection remain to be improved and concentration ratio of the industry needs to be increased. To separate minerals, large amounts of chemicals are used for mineral leaching in rare earth exploitation, which permeate the soil and threaten both soil and water underground. New technology breakthrough and applications in green, effective mining & dressing and smelting & separation of upstream rare earth resource need to be realized.

Reference:

Research Report on Rare Earth Industry in China, 2017-2021

At present, the annual production capacity of China’s RE extraction enterprises is over 300,000 tons. However, annual global demand is less than 200,000 tons, including 50,000 tons to 60,000 tons on the international market and 100,000 tons on the domestic market.

A-Share Listed Rare Metal Companies – Profiles and Financial Data

The production volume of tungsten, molybdenum, indium, bismuth, germanium, gallium and tellurium is very small, but all of these metals have special attributes, making them indispensable materials in the high-tech industry.

A-Share Listed Metal and Mining Companies – Profiles and Financial Data

Metal and mining companies are engaged in the production or mining of metal and ores. Mineral resources contain metal elements or compounds that can be extracted for industrial use.

The post Four Major Problems Faced by Rare Earth Industry in China first appeared on CRI Report.

Export Volume of Rare Earth Metals Unit: Ton

Source: China Customs

Export Value of Rare Earth Metals Unit: Million USD

Source: China Customs

Application of Rare Earth in Permanent Magnet Field

Rare-earth permanent magnet is the largest market of rare earth application, which mainly demands for elements including praseodymium, neodymium, dysprosium and terbium. The prices of these elements are high but they are at the bottom at present. Under the influence of cracking down illegal business and industrial integration, rare earth prices are expected to rise. In terms of the present operating mode of rare-earth permanent magnet industry, rise in rare earth prices will transfer to downstream and will increase profits. Therefore, rise in rare earth prices brings benefit to the industry.

Neodymium Metal 99.0-99.9% Price Trend (CNY/Kg)

Source: CRI

Praseodymium 96.0-99% Price Trend (CNY/Kg)

Source: CRI

Dysprosium Metal 99.0% Price Trend (CNY/Kg)

Source: CRI

Terbium Metal 99.9% Price Trend (CNY/Kg)

Source: CRI

Related reports:

Research Report on Rare Earth Industry in China, 2017-2021

At present, the annual production capacity of China’s RE extraction enterprises is over 300,000 tons. However, annual global demand is less than 200,000 tons, including 50,000 tons to 60,000 tons on the international market and 100,000 tons on the domestic market.

Research Report on Rare Earth Industry in China, 2011-2020

China’s cheap rare earth occupied the global market, and most countries in the world stopped the exploitation of rare earth. China’s reserves of rare earth once accounted for 71.1% of the global reserves while the percentage declined to 40% in 2015.

A-Share Listed Rare Metal Companies – Profiles and Financial Data

The production volume of tungsten, molybdenum, indium, bismuth, germanium, gallium and tellurium is very small, but all of these metals have special attributes, making them indispensable materials in the high-tech industry.

A-Share Listed Metal and Mining Companies – Profiles and Financial Data

Metal and mining companies are engaged in the production or mining of metal and ores. Mineral resources contain metal elements or compounds that can be extracted for industrial use.

The post Analysis on Import and Export of Rare Earth in China, 2016 first appeared on CRI Report.