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Grasp Three Basic Features of Rare Earth Industry, Propel Supply-side Structural Reform

On December 26, China Economic Information Agency of Xinhua News Agency and Baotou Rare Earth Product Exchange jointly released China Rare Earth Price Index (CREPI). This index is China’s first rare earth price index supported by online trading data. Jia Yinsong, Inspector of the MIIT Department of Raw Material Industry, and Director of the State Rare Earth Office, said it is necessary to take into consideration of features of the rare earth industry, strive to properly enforce supply-side structural reform, and grasp three basic features of the rare earth industry, namely strategic feature, functionality and expandability.

Jia Yinsong pointed out that, the strategic feature of rare earth resources is mainly reflected on functionality of rare earth materials, considering that functionality and application industries need to be closely combined, it requires technology innovation, product innovation, management innovation, and requires collaborative innovative development of industry-university-research-application, upstream and downstream industries.

Regarding strategic feature, rare earth is non-renewable strategic resource, from the perspective of rare earth industry, rare earth is the general name of 17 elements, in order to further strengthen scientificness of rare earth management, then in the scarcity aspect of different elements in rare earth resources, it requires classified management, meanwhile it is necessary to refine elements, variety, and function to ensure scientific standardization, and strengthen supply-side structural reform more specifically. Create excellent market environment more favorable for marketized rational allocation of rare earth resource, in order to accomplish organic unification between rational development and high efficiency utilization of rare earth resources.

Regarding functionality, production steps such as production and refinement of rare earth raw materials, and exploitation, dressing, smelting & separation, metal smelting of rare earth resources are basically raw material production process, which exerts considerable impact on functional materials in subsequent deep processing, to this end, for subsequent development of material functionality, it is required to further refine production, optimize composition of strength, so as to improve product value, and grade of application value.

Regarding expandability, it is required to develop toward product application of functional components. Whole industrial chain manufacture process is also a system for developing and enhancing rare earth function. It is necessary to fully bring out enterprise’s standard of scientific management and manufacture standard. Rare earth magnetic powder manufacturer should develop toward batch production, motor in mobile phone is mid to high-end product, through expandable structural reform, fully bring out strategic price of rare earth application functions, so as to improve supply system quality and efficiency of rare earth products; in order to consolidate the rare earth industry, it is necessary to develop strategic thinking of whole industrial chain development, in order to properly manage serial indexes including the rare earth price index, it is also necessary to make exploration and innovations from broad perspectives, multiple dimensions, and multiple types. Adhere to the guidelines of comprehensiveness, depth, objectivity, fairness, and scientific accuracy, by taking into account features of rare earth industry, boldly achieve innovation and development.

Jia Yinsong pointed out that, since the State Council promulgated several opinions on promoting rare earth industry in 2011, with joint efforts from all rare earth workers including relevant departments of governments at all levels, and enterprises, the development of rare earth industry has made considerable progress, positive progress has been made in resource environment protection, adjustment of industrial structure, development of application industry, enhancement of innovation ability, construction of management system as well as raising international standing aspects, the quality of industry development scaled new heights. Meanwhile, it is also necessary to soberly recognize existing problems, especially unauthorized excavation and illegal mining driven by interest which seriously disturbed market order, and resulted in sustained low level in market prices of rare earth products, especially the emergence of price plunge, MIIT joined hands with the public security departments to jointly crack down on rare earth rule-breaking and law-breaking activities.

Based on targets and requirements for constructing market system, management of rare earth industry all the more needs to emphasize the use of marketized, economic and legal means and measures. China Rare Earth Research Center adopts marketized method to make active exploration and practice in standardizing and guiding rare earth market order, it is necessary to adhere to the principle of innovation development, properly handle the compilation of China Rare Earth Price Index and other serial indexes.

Jia Yinsong said, adhering to guidelines of fairness and objectivity, China Economic Information Agency of Xinhua News Agency Xinhua organized massive survey work, finished subject study, and compiled the China Rare Earth Index Plan namely China Rare Earth Price Index, Industry Development Index, Industry Prosperity Index, this represents a necessary, timely, and beneficial attempt.