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Rare earth industry: integration of excess speed intractable dilemma

Pattern of disorderly development is changing the rare earth industry and waste of resources, China continued to increase in recent years, the rare earth industry consolidation efforts, and gradually form a pattern of Baotou Steel Rare Earth and other large enterprises as the leading industry. However, capacity expansion and the plight of weak demand is not fundamentally changed, the plight of the rare earth industry or continuation.
Rare earth industry overcapacity and disorderly exploitation is a serious problem, the state also introduced policies to promote improved industry concentration. In May 2011, the State Council on the promotion of sustained and healthy development of rare earth industry Opinions 'basically formed the pattern of the rare earth industry led to large enterprises, the top three of the South ionic rare earth industry enterprise group industrial concentration up to 80% above. This opened the prelude to the national rare earth industry consolidation. Ganzhou Rare Earth Group Co., Ltd. has formally established, China's rare earth industry has formed a pattern of Baotou Steel Rare Earth, Chinalco, Minmetals, Rising colored,Molybdenum Target Ganzhou Rare Earth Group, based. Ganzhou Rare Earth and Baotou Steel Rare Earth Resources obvious advantages. However, to accelerate industry consolidation is still difficult to resolve the rare earth industry is facing overcapacity dilemma.
Domestic rare earth industry(Molybdenum Target) consolidation to regulate rare earth production, price stability has played a certain role. However, the rare earth industry is still facing foreign potential output growth, lack of demand. Foreign rare earth production capacity of 21.5 million tons in 2017, while global demand is only about 90,000 tons. Serious excess capacity to drive down the price of rare earth. The data show that in February rare earth prices only $ 22,650 / ton, decreased by 11.32% from the previous month. Domestic producers corresponding to limit production to maintain price stability, Chen fully trained, the China Nonferrous Metals Industry Association, said recently that the rare earth less than 40% capacity utilization.
In addition, the continued weakness of the global economy as well as Japan and other countries rare earth research on alternatives to progress further increase the plight of the rare earth industry, the contradiction between supply and demand is difficult now signs of improvement. The Molybdenum Target industry researcher CBIW Industry Research Center Lin Liangmin weak global economic recovery affect the demand for rare earths, and some enterprises have ceased production and protect the price ineffective market is insufficient purchasing power. He believes that the future demand for rare earth industry is difficult to have much improved.

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