SHANGHAI, Feb. 26 (SMM) -
Baotou Steel Rare-Earth Faces Three Severe Challenges
Industry insiders believe that rare earth prices, which used to surge thanks to favorable policies from the government, will now depend on market fundamentals. In terms of market fundamentals, demand has been anemic, so rare earth prices are still under downward track at the moment. One market player anticipates that rare earth prices may continue to fall on a yearly basis in 2013 on its belief that downstream demand will remain tepid in 2013.
China’s Exports of Rare Earth Products Down in 2012
Rare earth industry has once again attracted much market attention due to plunging rare earth exports in China. China’s exports of rare earth ore, rare earth metals and rare earth mixture dropped 3.5% in 2012, accounting for a mere 53% of export quotas for the entire year.
Battles among Interest Groups Impede Integration of Rare Earth Industry
Battles over interest between local enterprises and central state-owned enterprises, privately-owned enterprises and state-owned enterprises are getting in the way of integration in rare earth industry. Finding a balance among these interest groups is vital to the sound development of the industry.
China Formulates 28 Standards on Energy Consumption Reduction in Energy-Intensive Industries including Rare Earth China has formulated and released 54 national standards since the National Development & Reform Commission (NDRC) and Standardization Administration of the People's Republic of China (SAC) initiated the 100 Energy-Efficiency Standards Promotion Program in 2012. These national standards include 28 energy consumption reduction standards in energy-intensive industries such as cement, coal mining, tire, rare earth and chemical products.
Illegal Rare Earth Enterprises in Inner Mongolia Shift to Other Provinces
Surveys found that although many illegal rare earth enterprises in Inner Mongolia have been shut down, some of these enterprises have shifted to other provinces. As a result, a large quantity of unlicensed and cheaper rare earth products are flooding the markets, disturbing market order.
Baotou Steel Rare-Earth to Resume Production in March, Rare Earth Industry Needs Time to Recover