The policies introduced frequently have stirred up China's rare earth industry.
Recently, the Ministry of Finance and the State Administration of Taxation issued a notice and decided to increase the standard of rare earth mineral resources tax revenue by 10 times from April 1. It has been learned from authorities that the country will continue to invest heavily in rare earth reserves.
It has been 4 years since the National Development and Reform Commission and the relevant person in charge of the Ministry of Land and Natural Resources proposed in the “Rare Earth Production Planning Working Conference†in the current year that “the establishment of a national rare earth reserve system†has taken place. With the changes in the market, the role and necessity of the reserve They are constantly being revised and are constantly being debated.
National reserves have been regarded as an important measure to keep the price of rare earths stable. Due to the continuous rise in rare earth prices and the low technical level of domestic rare earth application companies, domestic application companies cannot use the advantages of resources to obtain R&D opportunities, and the original intention of national resource-for-technology evacuation. The introduction of the rare earth reserve policy will lead to fierce competition between the state, enterprises, and the central and local governments.
The authoritative source of the timing of controversy reserves said that it is possible to use tens of billions of yuan for national reserves, mainly because the price of rare earths rose too fast for more than a year, and then called the Ministry of Industry and Information Technology and the National Reserve Bureau of the National Development and Reform Commission to inquire about the matter. As of this writing, No reply was received.
It is understood that according to statistics before 2010, the annual output value of China's rare earth resources is about 40 billion yuan. After the rise in 2010, compared with the prices at the end of 2009, the prices of major rare earths have now quadrupled. Without considering the expansion of production, the output value of the entire industry has been roughly estimated to exceed 150 billion yuan.
“Under the current circumstances, the national reserves are out of date, and the original intention of putting forward the national reserves is to use reserves to prevent the supply of over-supply and cause the sale of rare earths. It is now clearly impossible to see a situation where supply exceeds demand,†said one expert who declined to be named. Once the national reserves are difficult to put into the market, the supply situation will become even more tense.
The opinions of the above experts represent a large part of the opinions of industry insiders. The quotation of Shanghai Nonferrous Metals Co., Ltd. on March 30 showed that the prices of antimony oxide, antimony oxide and antimony oxide favored by the market have reached 540,000 yuan per ton. , 510,000 yuan, 500,000 yuan, more than 50% more than in mid-February.
The price increase of rare earth concentrates was even more striking. In May 2010, the prices learned at the Baiyunebo Mining Area in Baotou were between RMB 5,000 and RMB 6,000 per ton. Today, the black market price has soared to RMB 50,000 per ton.
In the last three years, China's rare earth production indicators are all around 80,000 tons, showing a decreasing trend. Although the mandatory production indicators for 2011 have not yet been announced, the industry has already defaulted to about 80,000 tons, and the gap from world demand is between 40,000 and 50,000 tons. In the next 2 to 3 years, China's rare earth supply will determine the price of the world's rare earth market.
On March 30th, the situation learned from relevant departments in Baotou was that details on the national reserves were still being negotiated, and disputes between the local government and the central government on corporate reserves and national reserves were still in dispute. The focus of the controversy is whether this part of the reserve comes from within the mandatory plan or another index?
“The external rumors that hundreds of billions of yuan are used for national reserves may be a continuous and gradual process. Now that the prices are already high, we must consider the impact of the reserve market.†An Sihu, assistant to director of the management committee of Baotou Rare Earth High-tech Zone, pointed out: If you take up an already tight planned production target, the reserve is tantamount to fueling the already mad market. Since the national reserve is based on strategic considerations, it will not be easily thrown up after storage.
In fact, starting from last May, Baotou Steel Rare-Earth Co., Ltd. has already been doing trials of rare earth reserves, but its nature belongs to corporate storage. At the beginning of the year, the People's Government of Inner Mongolia Autonomous Region approved the “Strategic Reserve Plan for Rare Earth Resources in Inner Mongolia Autonomous Regionâ€, and Baotou Rare Earth took the lead in implementing the strategy of “building 10 rare earth oxide reserve facilities with a total reserve of over 200,000 tonsâ€. Reserve plan.
Downstream companies are miserable. The news that the “rare resource tax on natural resources has been raised by 10 times†has caused the outside world to worry about the operation of rare earth production companies. In reality, however, it is the downstream application companies that are really under pressure. It is understood that there is no buffer mechanism in the country and the cost of resources is directly transmitted to downstream companies.
According to the notice of the Ministry of Finance and the State Administration of Taxation, the adjusted tax amount is: 60 yuan per ton of light rare earth (including cesium ore and monazite); 30 yuan per ton of medium and heavy rare earth (including cerium ore, ion type (Rare earth minerals), and in the previous implementation rules of China's provisional regulations for resource tax, the "other non-ferrous metal mine ore" tax is only 0.5 yuan per ton to 3 yuan per ton.
In general, the northern heavy rare earth ore is mostly extracted from iron ore and its grade is between 5% and 10%. Generally, 10 tons of ore can produce rare earth fine powder with a purity of 50%. The quality of heavy rare earths in the south is much lower, generally between 1 and 7 hours, and often requires 1,000 tons of ore to produce 1 ton of rare earth products.
Lai Zhaotian, deputy general manager of Jiangxi Luzhou Mining Company, told the media earlier that after the implementation of the new resource tax, the tax burden on heavy rare earth will rise by 45,000 yuan from a few hundred yuan per ton. The rare earth companies in Inner Mongolia and Sichuan face much less pressure, and the profits of high-grade ore have risen significantly.
In fact, this increase in rare earth resource tax did not cause too much concern for resource companies. Although the concept of rare earth stocks fluctuates, the companies themselves have responded calmly, especially to northern light rare earth companies.
Because according to the new tax rate calculation, light rare earth enterprises only need to pay about 700 yuan of resource tax per ton of rare earth concentrate, which is insignificant compared with the price of tens of thousands of tons per ton, the company's gross profit margin is still above 80%.
An enterprise owner in Sichuan said on the phone that the new resource tax standards are still too low for corporate profits, and may not be able to achieve the optimal utilization of resources. “As far as my business is concerned, I can endure a ton of concentrate. Increase the cost of 2,000 yuan."
Wang Zhongshan, deputy director of the Nanjing Rare Earth Application Society, believes that the resource tax increase this time is surprising, mainly because the past standard is too low. He said that according to the market conditions, resource taxes for light and heavy rare earths should receive at least 100 yuan per ton and 50 yuan per ton respectively, which is 66.7% higher than the current amount.
Relative to the calmness of upstream companies, application-oriented companies can only describe themselves in misery. Over the past year, these companies have been under pressure to triple their prices and are now on the verge of losses. The above-mentioned entrepreneurs stated that if prices continue to rise further, they will only be able to shut down some of the machines, cut production and lay off staff to ensure capital preservation. "If we continue to engage in large-scale national reserves at this time, how can we survive?"
It is understood that in order to deal with the "spirited rise" of rare earth prices, many rare earth applications companies have joined the ranks of reserve rare earth, although the purpose is not to hoard, but in fact has produced a hoarding effect, the market price of rare earth rose faster.
In May 2010 in Baotou Baiyun Obo area, many non-rare earth industries have witnessed the reserve of rare earth fines. This year, the price of rare earth fines in the local black market rose by a factor of 10 at the most, and even the previously unmarketable antimony oxides and antimony oxides all appeared to have been snapped up.
Recently, the Ministry of Finance and the State Administration of Taxation issued a notice and decided to increase the standard of rare earth mineral resources tax revenue by 10 times from April 1. It has been learned from authorities that the country will continue to invest heavily in rare earth reserves.
It has been 4 years since the National Development and Reform Commission and the relevant person in charge of the Ministry of Land and Natural Resources proposed in the “Rare Earth Production Planning Working Conference†in the current year that “the establishment of a national rare earth reserve system†has taken place. With the changes in the market, the role and necessity of the reserve They are constantly being revised and are constantly being debated.
National reserves have been regarded as an important measure to keep the price of rare earths stable. Due to the continuous rise in rare earth prices and the low technical level of domestic rare earth application companies, domestic application companies cannot use the advantages of resources to obtain R&D opportunities, and the original intention of national resource-for-technology evacuation. The introduction of the rare earth reserve policy will lead to fierce competition between the state, enterprises, and the central and local governments.
The authoritative source of the timing of controversy reserves said that it is possible to use tens of billions of yuan for national reserves, mainly because the price of rare earths rose too fast for more than a year, and then called the Ministry of Industry and Information Technology and the National Reserve Bureau of the National Development and Reform Commission to inquire about the matter. As of this writing, No reply was received.
It is understood that according to statistics before 2010, the annual output value of China's rare earth resources is about 40 billion yuan. After the rise in 2010, compared with the prices at the end of 2009, the prices of major rare earths have now quadrupled. Without considering the expansion of production, the output value of the entire industry has been roughly estimated to exceed 150 billion yuan.
“Under the current circumstances, the national reserves are out of date, and the original intention of putting forward the national reserves is to use reserves to prevent the supply of over-supply and cause the sale of rare earths. It is now clearly impossible to see a situation where supply exceeds demand,†said one expert who declined to be named. Once the national reserves are difficult to put into the market, the supply situation will become even more tense.
The opinions of the above experts represent a large part of the opinions of industry insiders. The quotation of Shanghai Nonferrous Metals Co., Ltd. on March 30 showed that the prices of antimony oxide, antimony oxide and antimony oxide favored by the market have reached 540,000 yuan per ton. , 510,000 yuan, 500,000 yuan, more than 50% more than in mid-February.
The price increase of rare earth concentrates was even more striking. In May 2010, the prices learned at the Baiyunebo Mining Area in Baotou were between RMB 5,000 and RMB 6,000 per ton. Today, the black market price has soared to RMB 50,000 per ton.
In the last three years, China's rare earth production indicators are all around 80,000 tons, showing a decreasing trend. Although the mandatory production indicators for 2011 have not yet been announced, the industry has already defaulted to about 80,000 tons, and the gap from world demand is between 40,000 and 50,000 tons. In the next 2 to 3 years, China's rare earth supply will determine the price of the world's rare earth market.
On March 30th, the situation learned from relevant departments in Baotou was that details on the national reserves were still being negotiated, and disputes between the local government and the central government on corporate reserves and national reserves were still in dispute. The focus of the controversy is whether this part of the reserve comes from within the mandatory plan or another index?
“The external rumors that hundreds of billions of yuan are used for national reserves may be a continuous and gradual process. Now that the prices are already high, we must consider the impact of the reserve market.†An Sihu, assistant to director of the management committee of Baotou Rare Earth High-tech Zone, pointed out: If you take up an already tight planned production target, the reserve is tantamount to fueling the already mad market. Since the national reserve is based on strategic considerations, it will not be easily thrown up after storage.
In fact, starting from last May, Baotou Steel Rare-Earth Co., Ltd. has already been doing trials of rare earth reserves, but its nature belongs to corporate storage. At the beginning of the year, the People's Government of Inner Mongolia Autonomous Region approved the “Strategic Reserve Plan for Rare Earth Resources in Inner Mongolia Autonomous Regionâ€, and Baotou Rare Earth took the lead in implementing the strategy of “building 10 rare earth oxide reserve facilities with a total reserve of over 200,000 tonsâ€. Reserve plan.
Downstream companies are miserable. The news that the “rare resource tax on natural resources has been raised by 10 times†has caused the outside world to worry about the operation of rare earth production companies. In reality, however, it is the downstream application companies that are really under pressure. It is understood that there is no buffer mechanism in the country and the cost of resources is directly transmitted to downstream companies.
According to the notice of the Ministry of Finance and the State Administration of Taxation, the adjusted tax amount is: 60 yuan per ton of light rare earth (including cesium ore and monazite); 30 yuan per ton of medium and heavy rare earth (including cerium ore, ion type (Rare earth minerals), and in the previous implementation rules of China's provisional regulations for resource tax, the "other non-ferrous metal mine ore" tax is only 0.5 yuan per ton to 3 yuan per ton.
In general, the northern heavy rare earth ore is mostly extracted from iron ore and its grade is between 5% and 10%. Generally, 10 tons of ore can produce rare earth fine powder with a purity of 50%. The quality of heavy rare earths in the south is much lower, generally between 1 and 7 hours, and often requires 1,000 tons of ore to produce 1 ton of rare earth products.
Lai Zhaotian, deputy general manager of Jiangxi Luzhou Mining Company, told the media earlier that after the implementation of the new resource tax, the tax burden on heavy rare earth will rise by 45,000 yuan from a few hundred yuan per ton. The rare earth companies in Inner Mongolia and Sichuan face much less pressure, and the profits of high-grade ore have risen significantly.
In fact, this increase in rare earth resource tax did not cause too much concern for resource companies. Although the concept of rare earth stocks fluctuates, the companies themselves have responded calmly, especially to northern light rare earth companies.
Because according to the new tax rate calculation, light rare earth enterprises only need to pay about 700 yuan of resource tax per ton of rare earth concentrate, which is insignificant compared with the price of tens of thousands of tons per ton, the company's gross profit margin is still above 80%.
An enterprise owner in Sichuan said on the phone that the new resource tax standards are still too low for corporate profits, and may not be able to achieve the optimal utilization of resources. “As far as my business is concerned, I can endure a ton of concentrate. Increase the cost of 2,000 yuan."
Wang Zhongshan, deputy director of the Nanjing Rare Earth Application Society, believes that the resource tax increase this time is surprising, mainly because the past standard is too low. He said that according to the market conditions, resource taxes for light and heavy rare earths should receive at least 100 yuan per ton and 50 yuan per ton respectively, which is 66.7% higher than the current amount.
Relative to the calmness of upstream companies, application-oriented companies can only describe themselves in misery. Over the past year, these companies have been under pressure to triple their prices and are now on the verge of losses. The above-mentioned entrepreneurs stated that if prices continue to rise further, they will only be able to shut down some of the machines, cut production and lay off staff to ensure capital preservation. "If we continue to engage in large-scale national reserves at this time, how can we survive?"
It is understood that in order to deal with the "spirited rise" of rare earth prices, many rare earth applications companies have joined the ranks of reserve rare earth, although the purpose is not to hoard, but in fact has produced a hoarding effect, the market price of rare earth rose faster.
In May 2010 in Baotou Baiyun Obo area, many non-rare earth industries have witnessed the reserve of rare earth fines. This year, the price of rare earth fines in the local black market rose by a factor of 10 at the most, and even the previously unmarketable antimony oxides and antimony oxides all appeared to have been snapped up.
Jiekelong Precision Manufacturing Co., Ltd. , http://www.nbcoupling.com