As a major supplier of rare earth resources and a major producer of rare earths, China continues to reform in the development and utilization of rare earth resources. At present, China adopts measures to control the total amount of rare earth mining, and the separation of rare earth mining and smelting is completed by six major groups. The foresight is here to analyze the competition pattern and market share of China's rare earth industry.
The main listed companies in the rare earth industry: at present, the listed companies in the domestic rare earth industry are mainly Northern rare Earth (600111), Guangsheng Nonferrous (600259), Minmetals rare Earth (000831), Xiamen Tungsten Industry (600549).
1. China's rare earth industry competition echelon
In recent years, the state has continuously strengthened the standardized management of the rare earth industry, and successively implemented a series of policies and measures such as rare earth environmental protection verification, rare earth industry access, strict control of the total amount of rare earth production, reform of rare earth special invoices, abolition of export quota restrictions, reform of ad valorem collection of resource taxes, and integration of large rare earth groups.
As China has taken measures to control the total amount of rare earth mining, the national rare earth mining and smelting separation state stipulates that the six major rare earth groups of China North rare Earth (Group) Hi-Tech Co., Ltd., China South rare Earth Group Co., Ltd., China rare Earth Industry Group Co., Ltd., Guangdong rare Earth Industry Group Co., Ltd., Minmetals rare Earth Group Co., Ltd. And Xiamen Tungsten Industry Co., Ltd.
The rare earth industry can be divided into three competitive echelons according to the registered capital of enterprises. Among them, the only enterprises with registered capital greater than 3 billion yuan are China North rare Earth (Group) Hi-Tech Co., Ltd.; the enterprises with registered capital between 10 yuan and 3 billion yuan are Minmetals rare Earth Group Co., Ltd., Xiamen Tungsten Industry Co., Ltd., China rare Earth Industry Group Co., Ltd., Guangdong rare Earth Industry Group Co., Ltd.; the registered capital of China South rare Earth Group Co., Ltd. is less than 1 billion yuan.
2. Market concentration and market share of China's rare earth industry.
China's rare earth industry has strict access qualifications and high barriers to entry. In 2020, the total amount control index of rare earth mining in China is 140000 tons, and the total amount of rare earth mining and distribution of rare earth mines and smelting separation products of North China rare Earth (Group) High-tech Co., Ltd. is the most, accounting for 47.25% of the total amount of rare earth mines and smelting separation products.
This was followed by China Southern rare Earth Group Co., Ltd. And China rare rare Earth Co., Ltd., with a combined total of 27112 tons and 23879 tons, accounting for 20.08% and 17.69%, respectively.
The market share of Guangdong rare Earth Industry Group Co., Ltd., Minmetals rare Earth Group Co., Ltd. And Xiamen Tungsten Industry Co., Ltd. are 7.85%, 4.19% and 2.94%, respectively.
From the perspective of trend, the market share of North China rare Earth (Group) Hi-Tech Co., Ltd. declined year by year from 2018 to 2020, and the concentration of CR2, CR3 and CR4 in rare earth industry also showed a fluctuating downward trend as a whole.
3. Enterprise layout and competitiveness evaluation of China's rare earth industry.
In China's rare earth industry, China North rare Earth (Group) Hi-Tech Co., Ltd. is the largest supplier of light rare earths in China and even in the world. Rare earth raw material products include rare earth salts, rare earth oxides and rare earth metals, and the business's revenue in 2020 was 5.419 billion yuan, accounting for 57.06% of the company's revenue.
From the perspective of the competitiveness of enterprise rare earth business, China North rare Earth (Group) Hi-Tech Co., Ltd., China South rare Earth Group Co., Ltd., China rare Earth Co., Ltd., followed by Guangdong rare Earth Industry Group Co., Ltd., Minmetals rare Earth Group Co., Ltd., Xiamen Tungsten Industry Co., Ltd.
4. Summary of the competitive state of China's rare earth industry.
From the perspective of the five-force competition model, at present, China's rare earth industry is a national strategic emerging industry, the threat of substitutes is small, the number of existing competitors is limited, and the market concentration is high; rare earth mining and smelting are carried out by six major rare earth groups, and there is no bargaining situation, while the downstream consumer market is mainly the processing of rare earth products, which has strong bargaining power to the downstream. At the same time, due to the strict entry qualification threshold of the industry, the threat of potential entrants is small.
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