Wealth

Vol 5 Chapter 1205: Price increase plan

Fan's investment group's dedication in Africa's mining industry made another worry about Zhuo Chu.

Japan’s major consortia have begun to pay close attention to the issue of Fan Investment Group’s mineral investment in Africa, as a country with scarce resources. Japan's ambitions for overseas minerals are considerable. Especially for investment in iron ore, it has always been very sensitive.

It's just that this time the problem of iron ore in Africa is a bit strange. The original Europeans wanted to use China's personal connections and irregular policies to obtain a large amount of titanium at the same time. Iron ore can also be exported at a high price, but because of Fan Wuyi’s detection, it is impossible to steal the rice. Today's ilmenite mixed raw ore is firmly in the hands of the Fan Investment Group.

However, Japan also believes that even if the Fan Investment Group has the ownership of several large narrow-iron mixed raw ore, it is not for the Chinese who do not have the corresponding separation and beneficiation technology to solve this worldwide problem. Most likely, even in Japan, there is no better way to achieve this goal.

Nevertheless, this also made Japan see Fan's investment group's enthusiasm for overseas mineral resources, which made them feel threatened. After all, there are so many mineral resources in the world. If Fan Ran Investment Group gets involved more, it will be left to Japan. The more people's exhibition space is, the more this is intolerable.

Prior to investing in Australian iron ore projects. The Japanese felt that they were one step behind the Fan Investment Group, leading to the loss of a large-scale iron ore mine. This time Fan Investment Group began to build industrial bases in Africa. The Japanese believed that the Fan Investment Group should never be allowed The mineral resources continue to expand, otherwise, Japan’s mineral policy will be on the verge of bankruptcy.

In particular, the anger of the Japanese is that in the places where the Fan Investment Group passes, the price of mineral resources in various countries has risen sharply, making it increasingly difficult to realize the idea of ​​picking up bargains. This cannot but be said to be bad news.

Suppose there is a large investment in Japan's resources. Then the impact on the national economy will be considerable, which is a weight that the Japanese cannot afford.

Fortunately, this time there was an epidemic in China, and the whole country is currently busy fighting against it. To prevent and control fatigue, especially Singapore jumped out and blatantly attacked the failure of the Chinese government to prevent and control fatigue, which set off a wave of international violence. This makes the Japanese feel that they can take advantage of it.

Not long ago, the Inner Mongolia Autonomous Region officially issued a document clarifying that the rare earth strategic resources within the autonomous region shall be exclusively operated by the Rare Earth Application Technology Development Corporation under the Fansi Investment Group. At the same time, the five southern provinces and regions jointly signed a joint action plan for the development of rare earth resources regulatory regions. The Rare Earth Technology Research Institute under Fan's Investment Group convened major rare earth companies to hold a symposium to discuss next year's rare earth export work arrangements. Rare earth export quotas may be further reduced.

However, the Rare Earth Industry Association led by Fan Investment Group also stated that China’s rare earth export restrictions only target rare earth raw materials, but encourage the export of rare earth processed products. This statement also shows the purpose of the national rare earth strategy and no longer exports raw materials. China, but hopes to introduce more deep-processing technologies and seek the right to speak in the industry chain.

As the Chinese government and Fan Investment Group have strengthened the control of rare earth resources, the advanced countries that previously relied heavily on China's rare earth exports have begun to transfer their deep processing projects to China. Or look for or restart the development of rare earth resources elsewhere.

For example, the Americans have already considered restarting domestic rare earth minerals in response to the monopoly of China's rare earth industry led by Fan Investment Group.

After many European and American countries protested against China's rare earth strategy, Japan, one of China's biggest beneficiaries of cheap rare earths, also joined the protest camp.

Japanese officials called last week that China should expand rather than restrict exports of rare earth resources.

According to the Japanese Ministry of Trade and Industry, the market price of some rare earth elements has risen by 200% since China announced the reduction of exports of rare earth resources. The Ministry of Trade of Japan also said that although other countries such as the United States also have rare earth resources, China is the only major producer with relatively low prices. But since Fan Investment Group formed a de facto monopoly, international rare earth prices have also started to skyrocket, which has seriously damaged the interests of Japan and other countries.

The Japanese side said. If the Chinese side cannot change this monopolistic behavior, then the Japanese side will also consider taking some necessary measures to respond.

Just after the Japanese announced these policies, the Japanese side followed Singapore and criticized the Chinese central government’s mistakes in the prevention and control of anti-democracy. They believed that the anti-democracy would contribute to China’s economic construction for more than two decades. Vanish into nothing.

At this time, the high-level leaders also saw that whether it was Singapore, which jumped out first, or Japan, which jumped out later, their goal is simple. They are all to start with China at a critical moment. China’s purpose in exchange for actual benefits, if you want to silence them, must give them a hush fee. Singapore hopes to gain access to China’s closed financial industry. The Japanese are coveting China's system resources.

These two guys are not good birds.

Since rare earth resources are vital to the production of computers, mobile phones, and low-carbon cars, which are booming in Japan, China’s rare earth sales restrictions and the resulting price increases. All make Japanese companies feel very nervous. It is reported that. Officials from the Japanese House of Representatives and cabinet assistants from the Ministry of Trade have traveled to China to express concerns about rising rare earth prices to relevant departments. The Japanese side also hopes to reiterate this request in the China-Japan economic talks to be held next week.

The total reserves of rare earth resources in Quanshu are 90 million tons, of which China's rare earth resource reserves account for only 30% of the world's total, the CIS accounts for 22% of the world's reserves, and the United States accounts for 15%. China has 30% of the world's reserves. Supplying more than 95% of global demand, it is known as gold sold at the price of cabbage. Due to the low prices of rare earths in China, the United States has closed its rare earth mines since 1985 and imported them all from China. Japan also imported a large amount of rare earths from China for hoarding and strategic reserves.

The previous statistics of the Chinese Rare Earth Society show that. Before Fan Investment Group controlled domestic rare earth imports and exports, China's rare earth output was about 120,000 tons, which supplied more than 95% of global demand. Except for China, the output of rare earths in Russia is 1,500 tons, the U.S. is 1,000 tons, and the five-stream book in India is sun-dried and said to be Xunshan.

…Giant China has the largest reserves, production, and exports, but it has no pricing power.

However, the application value of rare earths in the industrial field has become increasingly prominent. Rare earths are known as the mother of industrial monosodium glutamate and new materials. They have rich and excellent properties such as light, electricity, magnetism, conductivity, and catalysis. Widely used in cutting-edge technology fields such as new energy, national defense and military, etc., it is a non-renewable strategic resource.

therefore. Seeking rare earth pricing power has become the key to the national rare earth strategy.

Unfortunately, due to the competing interests of various domestic groups, China has never had the right to price rare earths. It was only after Fan Investment Group entered the rare earth industry on a large scale and controlled the upstream and downstream chains that the price of rare earths was substantially increased, enabling China's rare earth industry to truly gain Economic benefits, and make rare earths become the key for China to master the world's future high-tech exhibitions.

According to a government official in the Inner Mongolia Autonomous Region. Regions with abundant resources want to enter the more profitable downstream processing industry, rather than just providing raw materials. China does not want to be the factory of the world forever.

Reducing export quotas is an important means for China to seek the right to price rare earths. Since the year Fan's Investment Group entered the rare earth industry, China has gradually reduced its export quotas for rare earths, and the prices of rare earths have risen accordingly. As production decreases. It is the skyrocketing price, less work, and less resources lost, but the profits gained have doubled, which makes the domestic see more clearly. Who is really doing things for this country?

In late April, the Rare Earth Industry Association convened major rare earth companies to hold a symposium to jointly discuss the arrangements for the export of rare earths next year, and the export quotas for rare earths may be further reduced. Relevant Japanese authorities visited China to negotiate with China last week to express their concerns about the reduction of export quotas and seek solutions.

Because of this problem, Fan Wubing and Shen Peiming had a short video call with their son-in-law and his father-in-law at this time to agree on policies to deal with them.

At present, the domestic system resources basically follow the state of dividing the north and the south. The domestic rare earth resources are mainly distributed in the northern Inner Mongolia and the five southern provinces. The northern rare earths are mainly sold and sold, while the southern minerals are mainly sold in Zhongchai. Mainly minerals.

Fan Wubing mainly controls rare earth resources in the north. Although there are some rare earth processing enterprises in the southern provinces, they do not have an absolute advantage. Some enterprises controlled by Shen Peiming control the five southern provinces. About half of rare earth resources.

Because of the relationship between Fan Wubing and Shen Peiming. The two sides have been communicating effectively. Fan's investment group focuses on strategic reserves, while Shen Peiming and others control the export quota of rare earth resources, continuously reduce export volume, and greatly increase export prices. The excess rare earth resources are sold to Fan's investment group at internal prices. As a national reserve of rare earth resources.

At present, the central government is quite satisfied with the cooperation between the North and South groups. At the same time, it also hopes to strengthen the two groups, the Northern Rare Earth Group with the rare earth enterprises of Fan Investment Group as the core and the Southern Rare Earth Group with Shen Peiming Company as the core. Cooperation between China and China has strengthened China’s rare earth industry.

Affected by the rising prices of rare earth products, the reduction of China's rare earth export quotas and the crackdown on the smuggling of rare earth products, some foreign companies have begun to look for rare earth sources outside of China. To relieve supply pressure. Key Mining Company of the United States has recently begun preparations to resume the opening of the Mountain Pass rare earth mine. The mine is the largest rare earth mine in the United States. It was closed 14 years ago. The annual production capacity is expected to be more than 10,000 tons. Put into production. At the same time, Australia, Canada, Japan, Brazil, Kazakhstan, Vietnam, India and other countries are also implementing, preparing or planning to open rare earth mines.

After Fan Wubing and Shen Peiming studied the policy and technical aspects, they believed that with the development of technology, the application fields of rare earths have become more and more extensive, and they have made great achievements in new energy, new technology, and new materials. Rare earths are changing from industrial monosodium glutamate to industrial food. Internationally, electric vehicles, wind power motives, lighting, computer hard drives, mobile communications, etc. all require a large amount of rare earth applications. However, the domestic rare earth deep processing technology has been lagging far behind European countries, Europe, and Japan, and can only export primary products. The huge profits in the deep processing of rare earths have been left abroad.

"This is extremely unfavorable for us. It is very unfavorable for us to find a way to introduce technology." Fan Wubing said to Shen Peiming, "Although Fan Investment Group has made some progress in the deep processing of rare earths, it is compared with the international advanced level. There is still a big gap

"Then what do you mean?" Shen Peiming asked.

Fan Wubing said, "The last time I was talking with the Prime Minister, he also expressed great concern about this. In order to promote the development of domestic rare earth science and technology ~ www.wuxiamtl.com~ The national plan will set up a major rare earth special fund. The Ministry of Science and Technology will Allocate 500 million yuan to support the development and application of rare earths. The National Reform Commission is also working on the application and industrialization of rare earth functional materials. As a national strategy for discussion, rare earth functional materials and optical materials may be included as major strategic projects in the new five The annual plan is to focus on breaking through a number of key technologies, promote the industrialization of independent intellectual property rights, and realize the sustainable development of the rare earth industry."

All in all, China’s rare-earth export restrictions only target rare-earth raw materials, but encourage the export of rare-earth processed products. The implication is that the policy encourages foreign rare earth deep-processing enterprises to set up factories in China, thereby promoting the development of rare-earth deep-processing technologies. Seek the right to speak in the industry chain.

"Currently there are about fifty foreign-funded enterprises operating in Baotou Rare Earth High-tech Zone. The Korea Development Bank has also signed a cooperation agreement with Baotou High-tech Zone, which will guide Korean electronic product manufacturers and automobile manufacturers to Baotou, independently or in partnership with China. Establish a rare earth processing plant. The representative of Japanese trading company Mitsui & Co. in China also stated that Mitsui & Co. is guiding Japanese companies to invest in the rare-earth processing industry in China." Fan Wuyao said to Shen Peiming, "What I mean is, no matter how the domestic situation changes, take the initiative. Power still has to be in our hands, and we must not give out our interests to feed the dogs just because the local government is pleased with foreign investment to build political achievements.

"The plan is to increase the various materials by 30% on the current basis." Fan Wubing replied. "

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