North and South Respond to China's Active Exploration of Rare Earth International Discourse Rights

The situation that China, as the largest rare earth exporter, has been unable to grasp the pricing power is changing. A tough fight has been started to seek the international discourse power of the rare earth and seize the technical high ground.

At the recent Baotou Rare Earth Industry Forum held in China, Ren Fu, head of the management committee of Baotou Rare Earth High-tech Zone, said that Baotou is actively planning to build a rare earth trading center and rare earth technology property rights trading center. This is an active attempt by the rare earth industry in China to seek international discourse rights by building a financial and technological platform.

At the same time, at the same time, the launching ceremony for the joint operation of rare earth development supervision regions in 15 cities in the five southern provinces was held in Heyuan, Guangdong. The participating parties signed the Joint Action Plan for Rare Earth Development and Supervision Regions in 15 Cities of the Five Southern Provinces and Regions, and will actively promote the integration and development of rare earth resources, cultivate and create competitive enterprises, explore and establish a unified rare earth mineral product market, and increase the price of rare earth products in China. right.

A meeting between the North and the South constitutes a common voice for China's rare earth industry to seek international discourse rights.

The rare earth is hailed as the "vitamin" of modern industry and the "treasury of new materials in the 21st century". It is a strategic resource for the development of the world's new material industry, modern high-tech industry, and defense industry. For many years, our country has occupied the position of the world's largest rare earth country, and it has the world's first four reserves of resources, production, exports and consumption. However, inconsistent with the world's largest rare earth status as a rare earth, the price of rare earth products in China has long been low in the international market. Since the implementation of the export quota system for rare earth products in 1998, the export volume of rare earths in China has increased by more than 10 times, but the price has dropped by more than 1/3. Many rare earth enterprises have maintained marginalization on the basis of low profits and losses.

The reason is mainly because the industry is scattered. China's rare earth companies do not have pricing power in negotiations with foreign buyers. “All along, China's rare earth industry has a large number of small enterprises undergoing disordered mining. These companies are fighting each other and form internal friction. Foreign buyers often take an order and inquire about prices from multiple export companies. The main reasons for the loss of rare earth international pricing rights are due to the fragmentation of trades and the imbalance in the main body of foreign exchange caused by bulls, said industry experts.

In recent years, with regard to the status quo of rare earth industries, the country frequently makes heavy lifting in the protection of mineral resources, limiting export quotas, and industrial integration. A series of combing and rectification gradually came into play. Since mid-2009, the decline in the prices of rare earth products reversed and began to gradually recover. Since the beginning of this year, the price of some rare earth products has risen rapidly, setting a new high in recent years.

Experts pointed out that we must rely on the strength of financial and market tools to start from the price formation mechanism of rare earth products, establish a national rare earth trading center, form a public bargaining platform, and then form a transparent pricing mechanism recognized by the international market, to speed up the return of the right to speak.

To this end, Baotou Rare Earth High-tech Zone is actively operating. Ren Fu said: "We are actively planning to build a rare earth trading center, to build a concentrated and orderly rare earth trading market, regulate the trading behavior, and gradually control the rare earth pricing power with a market-based approach."

The Baotou Rare Earth High-tech Zone has previously conducted various attempts. In 2009, Baotou Rare Earth High-tech Zone and Baotou Steel Rare-earth and other seven companies jointly formed Baotou Rare Earth International Trading Co., Ltd., and identified strategic reserve plans for Baotou Rare Earth Raw Materials through the implementation of three types of reserve methods: ore type, raw material type, and product type. , reserves 3 million tons, 30,000 tons, 40,000 tons of rare earth raw materials products, and the rare earth oxides and rare earth metals produced by Baotou Rare Earth International Trading Co., Ltd. Baotou Rare Earth International Trading Co., Ltd. Realize unified purchase and sales, eliminate the vicious competition in Baotou rare earth raw material market , To a certain extent, stabilized the northern rare earth raw material market.

Today, Baotou Rare Earth High-tech Zone, with the support of the two-tiered government of Inner Mongolia Autonomous Region and Baotou City, is organizing powerful companies as sponsors and investors to form a joint-stock transaction center. The center will adopt a government-led and market-oriented mode of operation. It will start with spot listing transactions, spot-forward mid- and long-term transactions, transformation of scientific and technological achievements in rare earth industries, and technology and property rights trading. It plans to invest in the operation in early 2011, and eventually build a rare earth trading center. And rare earth technology property rights trading center.

Ren Fu introduced that the preparation of a rare earth trading center in Baotou Rare Earth High-tech Zone can, on the one hand, form a long-to-long situation by introducing a large number of social trading entities, breaking the current pattern of long-term monopoly of unequal transactions, and on the other hand, adopting standards and norms. The trading model and open and transparent information release avoid dark-box operation, thus discovering the real price of rare earth resources in the transaction.

The first meeting of the Joint Action Joint of Rare Earth Development and Supervision Areas in 15 Southern Provinces and 15 Cities, and He Jiancheng, Director of the Guangdong Provincial Heyuan Municipality Chen Jianhua indicated that the joint operation of the rare earth development and supervision regions in the 15 cities of the five southern provinces concerned the national strategic security and was a mineral mine in China. The development of management innovation in regulatory areas is of great significance in regulating the development and operation of rare earths in China and in promoting the coordinated development of China's rare earth industries. (Ji Ailing)