Abstract Since August last year, China's rare earths have shown a downward trend in both export and domestic sales. Not only have prices fallen sharply, but production and sales have fallen. Many industries that use rare earths have not been able to withstand high-priced rare earths, and their costs have risen. Alternatives to reduce rare earth use...
Since August last year, China's rare earths have shown a downward trend in both export and domestic sales. Not only have prices fallen sharply, but production and sales have fallen. Many industries that use rare earths have not been able to withstand high-priced rare earths, and their costs have risen, and they have shrunk or replaced them. Reduce the amount of rare earth. In April of this year, there was a slight increase in the price of rare earths, and it soon stopped in May. In particular, strontium, which accounts for about 75% of rare earth elements, is more pronounced. In the European debt crisis and the high price of rare earths, the export quota was not completed in the first half of this year.
At present, the price has fallen to near the level of April 2011, and the market is still not improving.
Wang Zhongshan, deputy director of the Nanjing Rare Earth Application Research Association, said that after all, rare earth is a small industry in the national economy, because it causes trouble and impact to many industries. Some industries that used rare earths as additives, modifiers or functional materials turned to other alternatives or simply did not use rare earths. Exports also lost a certain market. If we do not take countermeasures in time, it will inevitably let China's rare earths develop into a strange circle, making China's rare earths once again facing a trough. Wang Zhongshan believes that focusing on expanding domestic demand and striving for the international market is an urgent task for the development of China's rare earth industry.
Expanding domestic demand is the driving force
China's rare earths have grown from discovery to production, application, and foreign trade to the world's largest scale. Wang Zhongshan believes that domestic demand is the driving force, and domestic demand originated from the promotion and application began in the 1980s.
China's rare earths have grown stronger during the period of coexisting planned economy and market economy. In the early 1990s, low-cost development, low-cost sales, and foreign exchange, formed a market in this situation.
In the past, the price of rare earth was low and deviated from value, for objective reasons. At that time, the promotion and application was based on how many rare earths were used each year.
Wang Zhongshan said that private enterprises have made great contributions to the development of China's rare earths: "They are legally registered in accordance with the law and commerce, pay taxes according to law, support workers, and promote local economic development. This is most remarkable in Ganzhou. Some enterprises are small in scale but advanced in technology. The environmental protection standards, low cost, market, and strong enterprise competitiveness. Under the State Council's "Rare Earth Office" and the China Rare Earth Society's call for the organization, with the full support of the local rare earth offices, the country's scientific research is the leading The scientific and technical personnel promoted the application team of a rare earth for the backbone, and carried out the promotion and application work in many industrial and agricultural and forestry application categories with purpose and purpose."
At that time, it also established a rare earth application collaboration network for agriculture, nonferrous metals, steel, energy-saving lamps, permanent magnets, textile and leather industries under the “Rare Earth Officeâ€, responsible for timely organizing exchanges, on-site observation, summing up experience and expanding applications.
In this way, while the international market gradually gains the upper hand, the ratio of domestic sales of rare earths to exports has also expanded. “In the domestic demand, the price of rare earth products is an important factor.†Wang Zhongshan said that in the past, low-cost mining, production, and below-value prices are gone forever.
Since 2010, with the increase of mining resource tax and the large investment in environmental protection costs, rare earth producers have increased costs in raw materials, auxiliary raw materials, wages, environmental protection, etc., forcing the return of rare earth products, and the price of rare earth products has risen too high. Downstream manufacturers are unbearable.
Many industries that traditionally use rare earths, such as steel casting, non-ferrous metals, wind power, energy-saving lamps, glass ceramics, polishing powder, and chemical industries, are overwhelmed and instead use or replace them with other materials. Wang Zhongshan believes that this is a big impact on "changing the advantages of resources for economic advantages" and is a severe test for "must do a good job of rare earths."
He proposed that the expansion of domestic demand is the ultimate direction of China's rare earth development: "not only to adapt to domestic demand in terms of price, but also to introduce appropriate policies and industry regulations, to guide the price of rare earths to the application enterprises, reduce intermediate links and price speculation, and reduce burdens for applied enterprises. Reduce the cost of applying rare earth. "When the price deviates too much from the use value, the domestic manufacturers can't afford it. Then the national treasure can only be used as a shelf for the supply. This is good for economic development, clean energy, energy saving and emission reduction. "Wang Zhongshan said that the price is bound to bring resistance to domestic applications, holding a golden doll to sleep and seeing a business failure is not the way."
He proposed that in the process of returning rare earth value in China, the relevant departments should assume the responsibility of price macro guidance, so that the mining production enterprises have both reasonable profits and domestic application enterprises can afford, the market operation does not go into a strange circle, and avoid rare earth pairs. The thrust of the national economy has become a drag.
Expanding domestic demand is guided by science and technology
Although China's rare earth production and export ranks first in the world, there is still a gap between the rare earth technology and its application and the world's advanced level. There are also shortcomings in the application of fields, application of technology and applications, and the conservation of rare earth raw materials. "So not only must we learn the world's advanced technology, but also have to innovate, we must also explore the carrier raw materials other than rare earth materials." Wang Zhongshan said that the application of rare earths in Japan, South Korea, Europe and the United States in steel casting is more in-depth. Foreign countries use less steel in China than in China, and the quality of products is very high. Different types of steel and castings are used in rare earths. At the same time, foreign countries attach great importance to the quality of raw steel and molten iron, and the effect is more obvious after adding rare earth. China is still a rough-type application, and rare earth waste is too much, and the effect is not as good as abroad.
The application of imbalances in 17 rare earth elements has long been commonplace in the industry. The most abundant and most abundant antimony element in rare earth has not yet made new breakthroughs in the application field. Due to the price increase, the application of antimony element in the textile industry and polishing materials has been sharply reduced in the past two years, and the backlog is considerable. Therefore, it is extremely urgent to open up new applications for antimony elements.
Wang Zhongshan said that the steel casting industry will have the largest amount of application in the future. If it can break through in application technology and reduce application costs, the future is broad. In addition, in applications such as glass ceramics, paints, and exhaust gas purification, it is also possible to reduce costs by taking the lead in technology and finding a more reasonable application amount.
At present, the phenomenon of China's rare earth heavy raw materials adoption, heavy separation and production, and light promotion and application still exist. Wang Zhongshan said that the root cause is quick success: "Rare earth separation products have a fast profit and can be rich, but it takes a long time and energy to engage in rare earth technology. The input cost recovery period is long, the technical funds are lacking, and rare earth application technology lacks leading figures and professional scientific research institutions. If this situation does not change, it will be difficult to stimulate rare earth domestic demand, expand domestic application, and promote the healthy development of China's rare earth."
Call for the establishment of a rare earth application mechanism
The publication of the China Rare Earth White Paper clarifies the strategic principles and policies for the development of China's rare earth technology and clears the direction for the sustainable and healthy development of China's rare earth.
Wang Zhongshan proposed this as soon as possible to establish a rare earth promotion and application mechanism based on rare earth production and application enterprises, science and technology innovation as the leader, and production, study and research. For the promotion and application of domestic demand innovation projects, the state will support policy and capital, and establish state-level rare earth scientific research institutions as soon as possible, concentrate professional talents, accelerate the pace of innovation and development of China's rare earth technology, and expand innovation in application fields.
Wang Zhongshan specially proposed to re-establish the team of rare earth experts combining Laozhong and Qing under the leadership of the National “Rare Earth Officeâ€. “The focus is on expanding the application and application, formulating key research projects, and guiding the application of rare earths in new fields and technologies. The expert group can be affiliated with the China Rare Earth Industry Association to facilitate cooperation with the main body of rare earth production and application companies to create a new approach to rare earth applications."
Wang Zhongshan repeatedly called on rare earth production enterprises to make profits to the application enterprises. Although the price of rare earth has gradually formed a price positioning mechanism under the conditions of market economy competition, the important reasons for the blocked export and internal supply reduction are closely related to the price.
He said that rare earth producers should have a long-term vision and know how to lose their domestic demand and lose their survival. They also suggest that the current state should play a role as a reserve, store rare earth mines and products at reasonable prices, and activate the steady development of rare earth enterprises. "Expanding domestic demand should also implement an export policy of leniency and strictness, and maintain the leading position of China's rare earths in the international market." When referring to exports, Wang Zhongshan said that 30 years ago, China exchanged foreign exchange for rare earth exports. force. In 1987, rare earth exports exceeded $10 million a year. After more than 20 years, China has become the largest supplier of rare earth raw materials on the international market. "Although China does not rely on rare earths for foreign exchange today, it cannot easily lose the market." Wang Zhongshan proposed to cancel the rare earth export quota, and only limited the number of strategic heavy rare earth elements.
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