On June 10, the data released by the General Administration of Customs showed that China exported 3,640 tons of rare piles of earth in May, down 16% from the previous month. From January to May, rare earth exports were 19,265.8 tons, down 7.2% year-on-year.
According to the Shanghai Securities News, on June 4, the relevant department of the National Development and Reform Commission held a symposium on rare earth industry experts. Experts at the meeting suggested that it is necessary to strengthen export control and establish a traceability and review mechanism for the whole process of rare earth exports.
Compared with the data of a year ago, according to the “Research Report on China’s Rare Earth Industry Market Prospects and Investment Opportunities in 2018-2023” issued by China Industrial Research Institute, in 2018, China exported 26,000 tons of rare piles of earth in January-June (average monthly exports of 4,000 tons). More tons), compared with the same period in 2017, the export volume was flat.
Obviously, even considering market cyclical factors, China’s rare earth exports this year are significantly lower than last year.
In this regard, many public opinion views generally associate this phenomenon with the trade friction between China and the United States today. At present, many analysts at home and abroad generally believe that this is a means for China to counter the pressure on US trade tariffs.
China is the country with the richest reserves of rare earth in the world. According to a survey released by the US Geological Survey (USGS) data in 2017, as of 2016, the global rare earth reserves are about 120 million tons, mainly distributed in China, Brazil, Russia, India, Australia, and other countries. Among them, China’s rare earth reserves of 44 million tons, accounting for 36.67% of the world’s reserves; Brazil’s rare earth reserves of 22 million tons, accounting for 18.33% of the world’s reserves; Russia’s rare earth reserves of 18 million tons, accounting for 15% of the world’s reserves.
However, China’s rare earth production accounts for 80% of global rare earth production. According to the US Geological Survey (USGS), global rare earth production in 2017 was 130,000 tons, and China’s rare earth output was 105,000 tons.
“There is oil in the Middle East and rare earth in China.” The world knows that oil is the most important energy at present, but few people know that rare earth is a collective name for 17 kinds of metal elements. It is known as “industrial MSG” and “mother of new materials”. Rare earth is an important raw material for many electronic products, chemical products, mechanical products and military equipment.
China’s management of domestic rare earth has been weak for a long time. It is mainly caused by the vicious competition between domestic enterprises and the low-cost export of rare earth.