Research Report
of China's Rare Earth Industry in 2007
Published:Nov 28th 2007
Table of Contents
Rare earth resources in China can be classified as north and
south. In northern part, there is mainly light rare earth and
there is mainly heavy rare earth in southern part. Light rare
earth mines include fluorin-carbon-cerium mines in Baotou Baiyun
Ebo, Sichuan Mianning, and Shandong Weishan, among
which the reserves of Baotou Baiyun Ebo owned by Baotou Steel
Corporation (the controlling shareholder of Rare Earth
Hi-tech) account for 80% of the total reserves in China. Heavy
rare earth mines mainly include rare earth ion mines in Jiangxi,
Guangdong, Fujian, Guangxi and Yunnan, withindustrial
reserves of 1.6 million tons and forward reserves of 6.4 million
tons. However, because of the disordered exploitation in last
decade, rare earth ion mines in southern part were destroyed
heavily and industrial reserves reduced rapidly. So it is
supposed to be protected.
In order to strengthen macro-control and improve industry
management, National Development and Reform Committee decided
that from 2007 the production of rare earth mineral products and
smelt and separation should be consistent with mandatory plan of
government, which is an important measure of the government to
control overall production of rare earth. Rare earth office of
NDRC held the working meeting of rare earth production plan for
2007 in Baogang Hotel in Nov. 30th 2006, which made an
illustration of the draft of construction plan and gave detailed
requirement for related regions and rare earth industry.
On Sep 14th 2006, Ministry of Finance, National Development and
Reform Committee and Ministry of Commerce jointly published the
Circular of the Ministry of Finance, the National Development
and Reform Commission, the Ministry of Commerce, the General
Administration of Customs, the State Administration of Taxation
of the People's Republic of China, on Adjusting the Tax Refund
Rate of Some Export Commodities and Supplementing the Catalogue
of Prohibited Commodities in Processing Trade (Cai Shui [2006]
No. 139). On Nov 1st, announcement on the Ministry of Commerce,
the General Administration of Customs, the State Administration
of Environmental Protection on announcing the Catalogue of
Prohibited Commodities in Processing Trade [2006] No. 82, which
listed 41 rare earth metal, alloy, oxide and salt products as
the prohibited commodities in processing trade.
On Oct 27th 2006, the Customs Tariff Commission of the State
announced the Circular on Adjusting Provisional Import and
Export Tax Rate of a Part of Commodities, which states that
since Nov 1st 2006 the state will impose export tax on 110
commodities with temporary tax rate. The temporary tax rate for
rare earth metal minerals and compounds is 10%.
During January and December in 2006, as Chinese relevant
departments continued to reinforce supervision on exploiting
rare-earth ore, total output of ore concentrate both in the
north and south has been taken under control and supply of
rare-earth ore concentrate in all parts of China has fell short
of demand. Except Baotou mine, price of rare-earth ore
concentrate in Sichuan and Jiangxi has increased greatly. In
2006 Baotou Iron & Steel Co., Ltd continued to take strict
control on total output of rare-earth ore concentrate;
meanwhile, to stabilize the market, price of Baotou rare-earth
ore concentrate (REO¡Ý50%) maintained at 2500-3800 RMB/ton
without increase. However, since July supply has become in
shortage and only some enterprises can be supplied. Price of
Sichuan rare-earth ore concentrate has also increased to
6300-6400 RMB/ton from 3700-3800 RMB/ton at the beginning of
2006. Price of Jiangxi medium-yttrium and rich-europium ore has
climbed to 75000-76000 RMB/ton at the end of the year from
37500-38500 RMB/ton at the beginning of 2006, increasing by
30000 RMB/ton. Supply of the ore is in tension and spot goods
are always unavailable. Like Jiangxi rare-earth ore concentrate,
price of Guangdong rare-earth ore concentrate (REO¡Ý92%) in 2006
also increased a lot and has climbed to 77500-79500 RMB/ton
since December.
Chapter1 Overview of rare earth industry 5
1.1 Overview of development of rare earth industry in China 5
1.1.1 History of rare earth industry in China 5
1.1.2 The present situation in 2006 and market trend of rare
earth industry 9
1.2 Main features of rare earth industry 10
1.2.1 Market feature 10
1.2.2 Technological feature 17
1.3 Policy analysis of rare earth industry 17
1.3.1.Investment policy 17
1.3.2. Export and import policy 19
1.4. Main problems in rare earth industry 21
1.4.1. Disordered exploitation 21
1.4.2. Severe resource waste 21
1.4.3. Severe environment pollution problem stemming from the
backward manufacturing techniques 22
1.4.4. Backward techniques and undesirable economic performance
23
1.4.5. Unbalanced consumption distribution 23
1.4.6. Unsmooth management mechanism 24
Chapter 2. Analysis of the development of global rare earth
industry in 2006 25
2.1 Development layout of global rare earth industry 25
2.1.1 Market competition layout 25
2.1.2 Technology advancement 26
2.2 Development of the United States rare earth industry 27
2.2.1 Market Analysis 27
2.2.2 Analysis of imports and exports 28
2.2.3 Advancement trend 30
2.3 Development of rare earth industry in Japan 30
2.3.1 Market analysis 30
2.3.2 Export and import analysis 31
2.3.3 Development trend 35
2.4 Projection of world rare earth industry 35
2.4.1 Production capacity 35
2.4.2 Demand projection 36
2.4.3 Analysis of supply and consumption 39
Chapter 3 Analysis of the rare earth resources in China 40
3.1. Analysis of the rare earth reserve in China 40
3.2 Rare earth separation capacity 44
3.2.1 Neodymium oxide 44
3.2.2 Dysprosium oxide 46
3.2.3 Terbium oxide 48
3.3 Prospect of rare earth exploitation and utilization in China
50
3.4 Strategies for long term exploitation of rare earth 50
3.4.1 Ordered exploit, enhance environment protection and raise
utilization rate 50
3.4.2 Technology advancement 51
3.4.3 Enhance waste disposal 51
3.4.4 Increase resource reserve 52
3.4.5 Transmission of economic growth pattern of rare earth
industry by market-oriented 53
Chapter 4 Analysis on development in China's rare-earth industry
in 2006 55
4.1 Ore concentrate 55
4.2 Carbonic acid rare-earth 56
4.3 Praseodymium and neodymium 57
4.4 Lanthanum and cerium 58
4.5 Terbium and dysprosium 59
4.6 Europium oxide 61
4.7 Illinium products 62
4.8 Gadolinium Market 63
4.9 Analysis of export and import 63
Chapter 5 Analysis of main applied fields 64
5.1 Catalyzer 66
5.1.1 Application status of rare earth in catalysis 66
5.1.2 Application technique trend of rare earth in catalysis 67
5.1.3 Demand projection 69
5.2 Glasses 70
5.3 Polishing powder 70
5.3.1 Current application of rare earth in the production of
polishing powder 70
5.3.2 Tech-trend of rare earth concerning production of
polishing powder 72
5.3.3 Demand amount 73
5.4 Metallurgy 74
5.4.1 Current application of rare earth concerning metallurgical
industry 74
5.4.2 Prediction on demand 75
5.5 The Permanent Magnet 77
5.5.1. The current development of the rare earth permanent
magnet material industry 77
5.5.2. The current development of the Chinese rare earth
permanent magnet material industry 81
5.5.3. The demand of the rare earth permanent magnet material 83
5.6 Luminescence materials 89
5.6.1 Application status of rare earth in luminescence materials
89
5.6.2 Application technique trend of rare earth in luminescence
materials 90
Chpter 6 Enterprises analysis 92
6.1 Antai Technique 92
6.1.1 Management situation of 2006 93
6.1.2 Development strategy 94
6.2 Rare Earth Hi-tech 95
6.2.1Management situation of 2006 95
6.2.2 Development strategy 96
6.3 Zhongke Sahuan 97
6.4 Ningbo Yunsheng 98
6.4.1 Management situation of 2006 100
6.4.2 Development Strategy 101
Chapter 7 Projection of rare earth industry and investment
suggestion 102
7.1 The development direction of the rare earth industry and its
products in China 102
7.1.1 Develop from large quantities of rare earth primary
products into rare earth fine chemical products 102
7.1.2 Rare earth products develop in the direction of high
purification, compound and ultra-fineness 102
7.1.3 Preparation technics and technology with self-dominated
intellectual property right will consistently come into being
103
7.1.4 The cooperation between enterprises and scientific
research organizations and universities will be strengthened.
104
7.1.5 The structure of rare earth products will change. 104
7.2 SWOT analysis of rare earth industry 104
7.2.1 Strength analysis 104
7.2.2 Weakness analysis 105
7.2.3 Opportunity analysis 106
7.2.4 Trend analysis 107
7.3 Major economic indicators of Rare Earth Mining industry in
China 108
7.3.1 Basic condition of Rare Earth Mining industry in China 108
7.3.2Assets and liability of Rare Earth Mining industry in China
111
7.3.3Sales and Profits of Rare Earth Mining industry in China
114
7.3.4Financial Ratio of Rare Earth Mining industry in China 118
7.3.5Economic indicators of the top ten enterprises 122
7.4.Major economic indicators of Rare Earth Smelting industry in
China 126
7.4.1Basic condition of Rare Earth Smelting industry in China
126
7.4.2Assets and liability of Rare Earth Smelting industry in
China 129
7.4.3Sales and Profits of Rare Earth Smelting industry in China
133
7.4.4Financial Ratio of Rare Earth Smelting industry in China
138
7.4.5 Economic indicators of the top ten enterprises 142
Table 145
Figure 148
Table
Table1. World Rare Earth Mine Production(kt) 5
Table2. Rare earth production in China(10000t£¬REO) 6
Table3. Output of major ionic rare-earth ore in southern area in
2005 (actual output exceeded 26000 tons) 14
Table4. Annual processing capacity of major ionic rare-earth
mines in the southern area 15
Table5. The mining Quota in China in 2007(REO ,t) 21
Table6. Growth rate of global economy 25
Table7. REO consumption and consumption structure of global rare
earth (ton), REO 25
Table8. Main import countries and areas of rare earth magnets 26
Table9. Salient Statistics¡ªUnited States: 28
Table10. Tariffs of U.S. RE 28
Table11. Consumption Situation of different types of rare earth
products in Japan (tons) 31
Table12. Imports of Japanese RE products 2002~2005 (Tons, one
million yen, the amount of brackets) 31
Table13. Japanese RE products Imported from China 2002~2005
(Tons, one million yen, the amount of brackets) 32
Table14. Prices of Japanese imported RE products (Yen/kg, CIF)
33
Table15. Changes in the prices of some Japanese Rare Earth
(Dollars / kg, CIF) 33
Table16. Imports of Japanese RE 2005 34
Table17. Output of Japanese Terminal Products Containing Rare
Earth 2003~2005 34
Table18. Export of Japan by Nov., 2006 34
Table19. World Production of Rare Earth Minerals 2004~2010 35
Table20. New plans in the world 36
Table21. World RE application consumption in 2003(tons, REO) 37
Table22. World Rare Earth, Reserves, and Reserve Base: 41
Table23. Exports statistic of Chinese neodymium by different
counties in 2005 46
Table24. Changes in the output of Chinese dysprosium oxide
(Dy2O3) in 1990-1999 Unit: t 47
Table25. Dysprosium oxide product exports to Japan in 1997-1999
Unit: t 48
Table26. Exports statistic of Chinese dysprosium by different
counties in 2005 48
Table27. Price trend of rare-earth ore concentrate,
January-December, 2006 55
Table28. Price trend of carbonic acid rare-earth,
January-December, 2006 (RMB/ton) 57
Table29. Price trend of praseodymium and neodymium products,
January-December, 2006 (10000 RMB/ton) 57
Table30. Price trend of lanthanum and cerium, January-December,
2006 (10000 RMB/ton) 59
Table31. Price trend of terbium and dysprosium products,
January-December, 2006 (RMB/kilogram) 60
Table32. Price trend of europium product, January-December, 2006
61
Table33. The price trend of illinium products in China January
to December in 2006 62
Table34. Application status of domestic rare earth during
1995¡ª2005(REO£¬t) 64
Table35. Forecast of the holding of cars and demand of car
cleaners in the following years in China 69
Table36. Application fields and consumption of rare earth
polishing powder in China (Ton) 72
Table37. Production of rare earth polishing powder of China
(Ton) 73
Table38. Domestic and foreign demands for rare earth polishing
powder for LCT and advanced chemical glass (Ton) 73
Table39. Global demand of metallurgical/mechanical industry for
rare earth 75
Table40. The global rare earth permanent magnet is shifting to
China. 82
Table41. The hybrid electric vehicles that are on market or will
be on market 87
Table42. Components of main business of Antai Technique in 2006
93
Table43. Components of main business of Rare Earth Hi-tech in
2006 95
Table44. Components of main business of Zhongke Sanhuan in 2006
97
Table45. Total number of enterprises , Number of loss making
enterprises , Industrial output, The average number of employees
of China's Rare Earth Mining industry from 2005 to 2007 108
Table46. Total number of enterprises , Number of loss making
enterprises , Industrial output, The average number of employees
of China's Rare Earth Mining industry in Aug,2007 108
Table47. Total number of enterprises , Number of loss making
enterprises , Industrial output, The average number of employees
of China's Rare Earth Mining industry in 2006 109
Table48. Total number of enterprises , Number of loss making
enterprises , Industrial output, The average number of employees
of China's Rare Earth Mining industry in 2005 109
Table49. Total assets ,Total liability ,average balance of
floating assets ,average balance of net fixed assets of China's
Rare Earth Mining industry from 2005 to 2007 111
Table50. Total assets ,Total liability ,average balance of
floating assets ,average balance of net fixed assets of China's
Rare Earth Mining industry in Aug,2007 112
Table51. Total assets ,Total liability ,average balance of
floating assets ,average balance of net fixed assets of China's
Rare Earth Mining industry in 2006 112
Table52. Total assets ,Total liability ,average balance of
floating assets ,average balance of net fixed assets of China's
Rare Earth Mining industry in 2005 113
Table53. Sales revenue ,Sales cost ,Sales expenditure ,Total
profits ,Total tax of China's Rare Earth Mining industry from
2005 to 2007 114
Table54. Sales revenue ,Sales cost ,Sales expenditure ,Total
profits ,Total tax of China's Rare Earth Mining industry in
Aug,2007 115
Table55. Sales revenue ,Sales cost ,Sales expenditure ,Total
profits ,Total tax of China's Rare Earth Mining industry in 2006
116
Table56. Sales revenue ,Sales cost ,Sales expenditure ,Total
profits ,Total tax of China's Rare Earth Mining industry in 2005
117
Table57. Capital maintenance and increment ratio ,Debt to assets
ratio ,Turnover frequency of floating assets ,The best level of
Turnover frequency of floating assets ,Sales rate Per capita
,The best level of Sales rate Per capital of China's Rare Earth
Mining industry in 2006 118
Table58. Capital maintenance and increment ratio ,Debt to assets
ratio ,Turnover frequency of floating assets ,The best level of
Turnover frequency of floating assets ,Sales rate Per capita
,The best level of Sales rate Per capital of China's Rare Earth
Mining industry in Aug,2007 119
Table59. Capital maintenance and increment ratio ,Debt to assets
ratio ,Turnover frequency of floating assets ,The best level of
Turnover frequency of floating assets ,Sales rate Per capita
,The best level of Sales rate Per capital of China's Rare Earth
Mining industry in 2006 119
Table60. Capital maintenance and increment ratio ,Debt to assets
ratio ,Turnover frequency of floating assets ,The best level of
Turnover frequency of floating assets ,Sales rate Per capita
,The best level of Sales rate Per capital of China's Rare Earth
Mining industry in 2005 120
Table61. Total number of enterprises , Industrial output, The
average number of employees of top ten enterprises of China's
Rare Earth Mining industry from January in 2005 toMay in 2007
122
Table62. Total assets ,Total liability ,average balance of
floating assets ,average balance of net fixed assets of top ten
enterprises of China's Rare Earth Mining industry from January
in 2005 to December in 2006 123
Table63. Sales revenue ,Sales cost ,Sales expenditure ,Total
profits ,Total tax of top ten enterprises of China's Rare Earth
Mining industry from January in 2005 to December in 2006 123
Table64. Capital maintenance and increment ratio ,Debt to assets
ratio ,Turnover frequency of floating assets of top ten
enterprises of China's Rare Earth Mining industry from January
in 2005 to December in 2006 125
Table65. Sales Revenue of top ten provinces of China's Rare
Earth Mining industry in 2006 125
Table66. Sales Revenue of top ten cities of China's Rare Earth
Mining industry in 2006 125
Table67. Total number of enterprises , Number of loss making
enterprises , Industrial output, The average number of employees
of China's Rare Earth Smelting industry in 2006 126
Table68. Total number of enterprises , Number of loss making
enterprises , Industrial output, The average number of employees
of China's Rare Earth Smelting industry in 2006 126
Table69. Total number of enterprises , Number of loss making
enterprises , Industrial output, The average number of employees
of China's Rare Earth Smelting industry in 2005 127
Table70. Total assets ,Total liability ,average balance of
floating assets ,average balance of net fixed assets of China's
Rare Earth Smelting industry in 2006 129
Table71. Total assets ,Total liability ,average balance of
floating assets ,average balance of net fixed assets of China's
Rare Earth Smelting industry in 2006 130
Table72. Total assets ,Total liability ,average balance of
floating assets ,average balance of net fixed assets of China's
Rare Earth Smelting industry in 2005 131
Table73. Sales revenue ,Sales cost ,Sales expenditure ,Total
profits ,Total tax of China's Rare Earth Smelting industry in
2006 133
Table74. Sales revenue ,Sales cost ,Sales expenditure ,Total
profits ,Total tax of China's Rare Earth Smelting industry in
2006 134
Table75. Sales revenue ,Sales cost ,Sales expenditure ,Total
profits ,Total tax of China's Rare Earth Smelting industry in
2005 135
Table76. Capital maintenance and increment ratio ,Debt to assets
ratio ,Turnover frequency of floating assets ,The best level of
Turnover frequency of floating assets ,Sales rate Per capita
,The best level of Sales rate Per capital of China's Rare Earth
Smelting industry in 2006 138
Table77. Capital maintenance and increment ratio ,Debt to assets
ratio ,Turnover frequency of floating assets ,The best level of
Turnover frequency of floating assets ,Sales rate Per capita
,The best level of Sales rate Per capital of China's Rare Earth
Smelting industry in 2006 138
Table78. Capital maintenance and increment ratio ,Debt to assets
ratio ,Turnover frequency of floating assets ,The best level of
Turnover frequency of floating assets ,Sales rate Per capita
,The best level of Sales rate Per capital of China's Rare Earth
Smelting industry in 2005 140
Table79. Total number of enterprises , Industrial output, The
average number of employees of top ten enterprises of China's
Rare Earth Smelting industry from January in 2005 to December in
2006 142
Table80. Total assets ,Total liability ,average balance of
floating assets ,average balance of net fixed assets of top ten
enterprises of China's Rare Earth Smelting industry from January
in 2005 to December in 2006 143
Table81. Sales Revenue of top ten provinces of China's Rare
Earth Smelting industry in 2006 144
Table82. Sales Revenue of top ten cities of China's Rare Earth
Smelting industry in 2006 144
Figure
Figure 1 Composition of concentrate rare earth mine production
in China, 2001~2006 (tons) 6
Figure 2 Export or rare earth and ratio of export to production
6
Figure 3 Total number of enterprises with annual revenue over 5
million year of rare earth Smelting industry in China 7
Figure 4 Revenue by province of enterprises with annual revenue
over 5 million year of rare earth Smelting industry in China 9
Figure 5 Monthly price of rare-earth ore concentrate in
Guangdong in 2006 (10 k RMB/ton) 13
Figure 6 Monthly price of rare-earth ore concentrate in Jiangxi
in 2006 (10 k RMB/ton) 14
Figure 7 Monthly price of rare-earth ore concentrate in Sichuan
in 2006 (RMB/ton) 14
Figure 8 Monthly price of carbonic acid rare-earth ore
concentrate in 2006 (0.01 million RMB/ton) 14
Figure 9 Chinese rare earth resources are mainly located in
Neimentgu Baiyuebo and the south of Jiangxi 42
Figure 10 Rare earth consumption in China since 1994(t£¬REO) 65
Figure 11 Rare earth consumption structure since 1994(t£¬REO) 65
Figure 12 Rare earth consumption structurein in China ,2005 66
Figure 13 Rare earth consumption structurein in world ,2005 66
Figure 14 Price of Neodymium oxide and Cerium oxide (yuan/ KG)
78
Figure 15 Price of Terbium oxide and Dysprosium oxide(yuan/KG)
79
Figure 16 Output of Nd, Iron and Boron in China and the world 79
Figure 17 The Chinese NdFeB permanent magnet mainly occupies the
low-end electromotor and audio equipment. 80
Figure 18 Japan concentrates on producing VCM and auto
electromotor. 80
Figure 19 The production growth of the global sintered NdFeB
permanent magnet material and the ratio of the Chinese output 82
Figure 20 the global production of hard disk (million) 84
Figure 21 The global demand of VCM (million) 84
Figure 22 The application of the NdFeB permanent magnet in
automobiles 86
Figure 23 the application of the NdFeB magnet in the hybrid
electric vehicle ¨C the hybrid electric system 86
Figure 24 The market capacity of the hybrid electric vehicle 87
Figure 25 prediction on the scale of China sintered NdFeB magnet
market (100 million RMB) 89
Figure 26 prediction on the scale of China bonded NdFeB magnet
market (100 million RMB) 89
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