Rejecting strips into rare earth export quotas "black hole"

Sinochem’s new network news “I am afraid that the rejection of the band furnace will not work now. The customers in March, April and May will all be full, at least until six months later.” Yesterday, the company manager of a rare earth rejection belt furnace in Luoyang, Henan Province, told “The first According to the Financial Times, due to the large number of companies that order rare earth rejection furnaces this year and the furnaces have installation cycles, many orders can only be delayed.

Behind the fire-fighting business is the sharp increase in rare-earth rejection belt exports. Last year, more than 30,000 tons of rare earth quotas were only used half, but rare earth rejection tapes that did not require quotas were exported. Many international companies have indirectly imported rare earths through quota loopholes.

It is because of the impediment of the normal rare earth export route that companies such as Baotou Steel Rare Earth (600111.SH) have invested heavily in rare earth rejection belts in recent years to expand exports.

“In 2011, domestic domestic ferronium boron used 4,500 tons of ferro-boron, which was more than 1,000 tons more than last year. The output of each NdFeB company has been reduced, and a large increase in NdFeB?” The general manager of the company said at an internal meeting that due to quota loopholes, in 2011, Japanese companies imported a large number of strips from China, and rejection of strips containing higher rare earth elements did not require quotas.

Quota loopholes?

Baotou Rare Earth Research Institute consultant Dou Xuehong told the newspaper that rejection belt furnace is mainly used for the smelting of various rare earth permanent magnetic materials and alloy smelting, and is one of the processes for producing neodymium iron boron. The rare earth raw material boron iron can be made into a rejection band after the rejection band furnace, and the rejection band piece contains 30% to 40% of rare earth element, etc. The rejection band piece can be used for making a permanent magnet material, a hydrogen storage alloy powder and the like.

"The rejection tape is mainly used abroad and the specific amount of export is not clear." Lin Donglu, secretary general of the China Rare Earth Society, told the newspaper.

In 2011, the price of rare earths in China has maintained a relatively high level, and the application of NdFeB in the downstream has been limited. At the same time, due to restrictions on export of rare earths due to domestic quotas and taxation and the sluggish international economy, the Ministry of Commerce stated that China’s rare earth exports in 2011. The quota was only used for 49% and less than 15,000 tons.

As the above-mentioned enterprises are puzzled, although the use of rare earths in the downstream NdFeB companies has decreased, the use of ferroboron in one of the NdFeB materials has not been reduced, and the rejection belts made of ferroboron may have been exported indirectly to foreign countries. According to the previous view, in 2011, foreign companies obtained more than 50,000 tons of rare earth products from China. Among them, most of them were smuggled through coarse processing products, in addition to smuggling.

“Under the quota system, because rare earth prices have risen this year, customs exports will approve exports according to market reference prices. If the export prices of rare earths are lower than market prices, it is not possible to export. If it is an export rejection belt, it can be used as With regard to rare earth applications, customs may not be able to distinguish between such products and will not be very strict and do not need quotas,” said Dou Xuehong.

Since 1998, China has implemented a permit system for the export quota of rare earth products, and has included rare earth raw materials in the list of prohibited commodities for processing trade. On May 19th, 2011, the Ministry of Commerce and the General Administration of Customs jointly issued an announcement that “other ferroalloys with a total content of rare earth elements >10% by weight” will be included in the rare earth export quota license management, so that rare earth alloys will be included in quotas. And impose a 25% tariff. However, this rule did not include rejection tapes, and some NdFeB grades were exported through the tape.

In this regard, Professor Wang Guozhen of the China Nonferrous Metals Design and Research Institute stated that the state is mainly responsible for the control of rare earth oxides in the export of rare earths, and for the rejection of strips, the state considers that the rejection strips have certain technical content. Therefore, it is not included in the management of rare earth quotas.

Due to the high content of rare-earth elements in the rejection belt, the industry has been calling for the inclusion of tape rejections in quotas and taxation. “In view of the high content of rare-earth elements in the rejection belt, both the society and the companies have recommended that the country slash the tape into quotas and taxation projects. The specific progress has to be asked by the Ministry of Commerce. Our rare-earth society is just an investigation and recommendations.” Lin Donglu said.

Yesterday, the reporter called the Ministry of Commerce, and the relevant person in the Industrial Products Division of the Department of Foreign Trade of the Ministry of Commerce told this newspaper that there is still no rejection of the zone with rare earth quotas.

"It is unreasonable to reject the taxation of the tape, and rejection of the tape should also be included in the scope of rare earth quotas. Although I think that the existing quota system is unreasonable, if this system is adopted, it should be fair and equal," said Dou Xuehong.

Enterprises have flocked to the zone because the export is not subject to quota restrictions and the NdFeB produced has better performance. The higher added value has led domestic companies to get involved in the area of ​​rejection.

Zhang Rong, Production Department of Zhangzhou Zhaori Rare Earth New Material Co., Ltd., told the newspaper that there are nearly 100 companies that do the rejection process. The company’s production capacity is about 2,000 tons. The export share of the company is greater than the domestic market. It is mainly used in computer disks and hybrids. Power car motors.

"On the export side, rejection belts can be exported without being subject to quota restrictions compared to rare earth materials. In China, rejection belted alloys have better performance, higher magnetic properties, and higher added value than ordinary rare earth alloys. Domestic companies may be swarming. To produce, resulting in excess capacity." Dou Xuehong said.

Dou Xuehong told the newspaper that the current export rejection films are Baotou Showa Rare Earth Hi-tech New Materials Co., Ltd. and Zhangzhou Zhaori Rare Earth New Materials Co., Ltd.

Baotou Showa Rare Earth High-tech New Material Co., Ltd. was established on September 17, 2002. It was jointly invested by Baotou Steel Rare Earth and Showa Denko, Japan, and Zhaozhou Zhaori Rare Earth New Material Co., Ltd. was controlled by Showa Denko and Donghai. Trading Co., Ltd., China's shareholding companies mainly include Zhangzhou Jidong Rare Earth Group and China Minmetals Group.

In recent years, Baotou Steel Rare Earth has expanded its projects with belts. On September 22, 2011, Baotou Steel Rare Earth Co., Ltd. and Anhui Dadi Xiongxin Materials Co., Ltd. jointly established Anhui Baotou Rare-earth Permanent Magnetic Alloy Manufacturing Co., Ltd. to build an annual output of 4,000 tons of NdFeB rapid solidification alloy project. On November 18, 2011, Baotou Steel Rare Earth Co., Ltd. said that it will spend 500 million yuan to invest in a project to build an annual production capacity of 5,000 tons of NdFeB vacuum stripper belt in Cixi, Ningbo.

The reporter yesterday called Zhang Ganghui, the Baosteel rare-earth Dongji secretarial secretary. He told Baotou Steel that the rare-earth rejection belt project had a certain technical content, and he declined to comment on other situations.



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