SHANGHAI, Jul. 12 (SMM) – Rare earth producers need to improve the value-added of their products against intensifying competition.
Rare earth prices have staged volatile movement over the past two years. Trading in rare earth markets is now inactive. China, though the world’s important rare earth exporter, fails to gain dominant power over pricing. Disorderly mining and smelting have left China’s rare earth industry in a state of overcapacity and led to a tremendous waste of resources. Chinese rare earth producers gain thin profits from low value-added rare earth products.
The Chinese government will step up support for rare earth industry, which is plagued by low R&D capability, low resource utilization rate and small scale, officials from the Ministry of Industry & Information Technology (MIIT) said.
China used to have rare earth processed by Japanese and South Korean companies, who then resell to Chinese enterprises. Now, however, Chinese companies are capable of processing rare earth by themselves instead of selling it to foreign companies. (Edited by SMM)