New rare earth pricing mechanism is expected to break

After the initial ruling of the WTO's rare earth case, the rare earth new pricing mechanism is expected to break. The National Rare Earth Standardization Technical Committee approved 18 rare earth industry standards. Industry giant Baotou Steel Rare Earth participated in the discussion and formulation of standards.

The State Reserve Bureau has already signed a rare earth storage agreement with the six major rare earth groups. Under the background of falling rare earth prices in the off-season, it is expected that rare earth reserves will increase at the end of the month. After continued decline in the fourth quarter of 2013, the price of rare earths has reached the bottom level of mid-2013.

The State Reserve Bureau has signed rare earth storage and storage agreements with Chinalco, Minmetals, Baotou Steel, Anhui, Xiamen Tungsten, and Guangshou Nonferrous Metals. The China Securities Regulatory Commission reported that the amount of storage and storage has increased by another 30 tons on the basis of the original 10,000 tons. % of the company's self storage, rare earth storage prices will be about 10% -15% higher than the current market price.

Two years later, last month, the United States, Japan, and the European Union initially ruled against China’s rare earth trade lawsuit that China lost. If the current ruling is still maintained, China will not be able to use quotas to restrict the export of rare earths.

The United States Geological Survey data show that China's rare earth reserves of 55 million tons, accounting for 36% of the world's total reserves. China's rare earth status report said that China's rare earth reserves account for about 23% of the world's total reserves, but it has undertaken more than 90% of the world's market supply.

According to China Securities Journal,

At present, the State Reserve Bureau has signed a rare earth storage agreement with the six major rare earth groups. At the end of the month, rare earth reserves are expected to heat up again. In addition, the National Rare Earth Standardization Technical Committee recently convened a meeting to discuss and review 18 rare earth industry standards, such as "Rare Earth Products Brand Representation". Baogang Rare Earth and its subordinate units, Rare Earth Institute, International Trade Corporation, Huamei Company, and hydrogen storage company took part in the formulation of a number of standards. With the formation of the six major rare earth groups, the new pricing mechanism for rare earths is expected to break.

Rare earth storage time approaching

It is understood that the current round of rare earth storage is undergoing the second round of negotiations, and it is expected to finalize the details of the purchase price and other issues. After continued decline in the fourth quarter of 2013, the price of rare earths has reached the bottom level of mid-2013.

Earlier it was reported that on April 10th, the price of the reserve will be finalized. Under the background of strong expectations of storage and storage, the price of rare earths rose from late March to early April. Since no detailed plan was finally introduced, the price of rare earths returned to decline in the first two weeks. However, given that the State Reserve Bureau has signed rare earth storage agreements with Chinalco, Minmetals, Baotou Steel, Anhui, Xiamen Tungsten, and Guangshen Nonferrous Metals, rare earth storage can be considered as having been formally finalized. Near the end of April, stocks are expected to rise again. It is reported that the types of products that may be stored and stored may be cerium oxide, cerium oxide, cerium oxide, cerium oxide, cerium oxide, cerium oxide, cerium oxide, lanthanum oxide, or lanthanum oxide. The quantity of the product stored and stored is based on the original 10,000 tons. With an additional 30% of self-storage, the price of rare earth storage and storage will be about 10%-15% higher than the current mainstream market price. Of course, any news is still speculative until the official rules for final collection and storage are issued.

According to historical data, January-February is the off-season demand for rare earths, and from March to May, the export volume of rare earths will usually increase significantly. If the national collection and storage plan is implemented gradually in the near future, then the current rare earth price corresponds to the stage bottom. Industry insiders optimistically judge that the domestic rare earth price is expected to rise. The price increase in the next quarter is expected to reach about 15%.

When the price of domestic rare earth drops to a certain price, the state collects and stores in the market according to the requirements of the purchase and storage mechanism. When the price of rare earth rises to a certain price, the country sells rare earth according to the requirements of the purchase and storage mechanism. When the total amount of rare earth resources mining is too large, resulting in a sharp decline in the price of rare earths, the country's timely reserve, will play an effective role in regulating the market.

Of course, buying and selling is only a means of price adjustment and has certain limitations. When the rare earth price is high, it is difficult for companies to have the incentive to sell rare earth to stabilize the price. When the price of rare earth is low, the purchase and storage of enterprises has a relatively limited impact on the market price. The management of rare earths should also be governed from the source and combat illegal illegal mining practices, which can play a role in stabilizing market prices.

Analysts pointed out that in addition to storage and storage, it should also accelerate the integration of the rare earth industry, so that by reducing the market supply to stabilize the price of rare earth. The collection and storage plan should be carried out in large and medium-sized enterprises. This will also enhance the competitive advantage of enterprises that comply with industrial policies and coordinate with relevant environmental protection policies. The pace of mergers and reorganizations will also be accelerated.

Industry standard approval facilitates pricing

In the Sino-US rare earth trade dispute case, the WTO panel originally determined that China's export tax and export quota measures on rare earth products violated established rules. China appealed that the export controls were for resources and environmental protection, trying to use tariffs and General Exception Article 20 of the General Agreement on Trade (GATT) concerning environmental protection.

It is understood that each ton of rare earth produces hundreds of tons of waste residue at the same time, causing serious pollution to water and soil. According to the US Environmental Protection Agency (EPA), rare earths in the processing process can cause surface water and groundwater to be contaminated by heavy metals and radionuclides, and the use of concentrated acid for leaching of rare earths will make the soil near the mining area no longer suitable for cultivation. In other countries, the high cost required for environmental pollution control of mineral extraction, selection, and smelting has caused some projects to stop production, and these countries have changed from rare earth exporters to importers.

Recently, the National Rare Earth Standardization Technical Committee convened a meeting to discuss and review 18 rare earth industry standards, such as "Representation Method of Rare Earth Products". Baogang Rare Earth and its subordinate units, Rare Earth Institute, International Trade Corporation, Huamei Company, and hydrogen storage company took part in the formulation of a number of standards.

Among the 18 standards, three product standards such as yttrium oxide were reviewed and pre-approved by the main drafting units of Baotou Rare Earth and Rare Earths Institute; 1 method standard: Chemical Analysis of Waste Rare Earth Phosphors Part 1: Rare Earth Oxides Total The determination of quantity was discussed by the Rare Earth Institute as the main drafting unit; the standards for "Rare Earth Products Brand Representation" and other standards were approved by the second drafter of Baotou Rare Earth as a second drafter. The meeting also demonstrated the plans for the rare earth standard projects from 2014 to 2015. The rare earth institutes and hydrogen storage companies proposed the formulation of seven industry method standards.

At the same time, the Advanced Rare Earth Materials Industry Technology Innovation Strategic Alliance (Pilot) was launched in Beijing, and Inner Mongolia Baotou Steel Rare Earth (Group) High-Tech Co., Ltd. was elected as Executive Vice Chairman.

The Strategic Alliance for Advanced Rare Earth Materials Industry Technology Innovation is under the guidance of the Ministry of Science and Technology. The “Rare Earth Industry Technology Innovation Strategic Alliance” led by Baotou Steel Rare Earth and Beijing Nonferrous Metal Research Institute led the establishment of “Advanced Rare Earth Materials and Clean Balanced Utilization Industry”. The strategic alliance for technological innovation was formed through strategic integration in July 2013. It was selected by the Ministry of Science and Technology in November 2013 as the third batch of national industrial technology innovation strategic pilot alliances. The Advanced Rare Earth Materials Industry Technology Innovation Strategic Alliance currently gathers six major rare earth groups and 33 key domestic rare earth material companies, scientific research institutes, and colleges and universities, focusing on major key technical issues facing China's rare earth industry development. , Actively carry out cooperation in production, education and research, carry out industrial technological innovation, accelerate the transformation of scientific and technological achievements and upgrade industrial technologies, upgrade the core competitiveness of rare earth industries, and promote the healthy and orderly development of China's rare earth industries. The industry generally expects that the "six major groups" of rare earths will be a good start to standardize the rare earth market. Only by setting up a scientific rare earth pricing mechanism can we reflect the status of strategic resources of rare earths at a reasonable price and comply with international trade rules.