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China's first rare earth programmatic document announced and will now be reorganized on a large scale
Publication Time:
23 Jul,2020
It takes one or two years to basically form a rare earth industry pattern dominated by large enterprises, and the industry concentration of the top three enterprise groups in the southern ion-based rare earth industry has reached over 80%.
It takes one or two years to basically form a rare earth industry pattern dominated by large enterprises, and the industry concentration of the top three enterprise groups in the southern ion-based rare earth industry has reached over 80%. On the afternoon of the 19th, the "Several Opinions of the State Council on Promoting the Sustainable and Healthy Development of the Rare Earth Industry" (referred to as the "Opinions") was released. When Mr. Li, a rare earth business in Ganzhou, Jiangxi Province, saw this paragraph, he couldn't help but pause. With years of experience, he clearly judged that the rare earth industry in Ganzhou, which has been working for more than ten years, will usher in a top-down integration wave.
Undoubtedly, as the first programmatic document of the rare earth industry issued by the State Council, it is of great significance to the development of the industry. Statistics show that rare earths are called "industrial vitamins" and are widely used in military, electronics and other industries. They are important strategic mineral resources. my country is not only the largest producer of rare earths, but also the largest exporter.
However, due to disorderly competition in the industry, rare earths cannot escape the fate of being sold at "cabbage prices." In order to protect the rational development of rare earth resources, the government has successively introduced a series of related policies around the two aspects of "restriction on exports" and "mergers and reorganizations." Since 2009, the price of rare earths has risen rapidly by more than 100%.
It is worth noting that the huge benefits of soaring prices have brought difficulties to the “mergers and reorganizations” of the rare earth industry. Since the beginning of this year, the chaotic situation of the rare earth industry has not been fundamentally changed. Not only has private mining, export smuggling, and speculation intensified, the "game" between central enterprises and local governments has also begun to heat up around the merger and reorganization of the rare earth industry in the south.
A CEO of a central enterprise involved in the integration of southern rare earths said frankly in an interview with a reporter from "Economic Information Daily" that the market is so good that companies are naturally unwilling to be merged, and local governments are unwilling to assign local companies and resources to ours. This must be a process of repeated games.
"This "Opinion" is a program, which represents that the country has begun to comprehensively deploy policies to correct the problems in the development of the rare earth industry and plan the overall development of the industry. This is exactly what the industry needs." Lin Donglu, secretary general of the Chinese Rare Earth Society, said Said in an interview with a reporter from "Economic Information Daily."