Chapter 1205 Price Increase Plan
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Fan's Investment Group's presentation in Africa's mining industry has led to other concerns about Zhuoji.
Japan's major conglomerates have begun to pay close attention to Fan's investment group's mineral investments in Africa, a resource-poor country. 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 iron ore problem in Africa is a bit strange, and the original Europeans want to use China's connections and non-standard policies to achieve their own access to a large amount of metal titanium at the same time. Iron ore can also be exported at a high price, but because of Fan Wuxian's awareness, it has caused the stealing of chickens and rice, and now the titanium iron mixed ore has been firmly in the hands of Fan's Investment Group.
However, the Japanese side also believes that even if the Fan Investment Group holds the ownership of several large narrow iron mixed mines, it is impossible for Chinese who do not have the corresponding separation and beneficiation technology to solve this global problem, and even the current Japan has no better way to achieve this goal.
Nevertheless, this also made the Japanese side see the enthusiasm of Fan's investment group in overseas mineral resources, which made them feel threatened, after all, there are so many mineral resources in the world, and if Fan Ran investment group is involved more, then the more intolerable it will be for the Japanese to expand.
Previously, he invested in Australian iron ore projects. The Japanese feel that they are one step behind the Fan's investment group, resulting in a large-scale iron ore mine missing, this time the Fan's investment group began to build an industrial base in Africa, the Japanese believe that the Fan's investment group must not continue to expand in terms of mineral resources, otherwise, Japan's mineral policy will be on the verge of bankruptcy.
The Japanese are particularly angry that the prices of mineral resources in various countries have risen sharply, making it increasingly difficult for them to realize their idea of picking up bargains. This cannot but be said to be bad news.
Suppose Japan has a large investment in resources. The impact on the national economy will be considerable, and the Japanese cannot afford it.
Fortunately, this time China has broken out the **epidemic, and the whole country is currently busy fighting **. Fatigue in prevention and control, especially Singapore, jumped out and openly attacked the Chinese government's mistakes in the prevention and control of fatigue, setting off an international wave. This made the Japanese feel that there was an opportunity to 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 are exclusively monopolized by the rare earth application technology development company under Fan's Investment Group. At the same time, the five southern provinces and regions jointly signed a joint action plan for the development and supervision of rare earth resources, and the Rare Earth Technology Research Institute under Fan's Investment Group convened a symposium of major rare earth enterprises to discuss the work arrangements for rare earth exports next year. Rare earth export quotas are likely to be further reduced.
However, the rare earth industry association led by Fan's Investment Group also said that China's rare earth export restrictions are only for rare earth raw materials, but encourage the export of rare earth processing products, which also shows the purpose of the national rare earth strategy, no longer to be a raw material exporter, but to introduce more deep processing technology, and seek the right to speak in the industrial chain.
As the Chinese government and Fan's Investment Group have tightened their control over rare earth resources, major countries that previously relied heavily on China's rare earth exports have begun to transfer their deep processing projects to China. Or find or restart the development of rare earth resources elsewhere.
For example, the Americans have considered reopening domestic rare earth minerals at this time to deal with the monopoly of China's rare earth industry under the leadership of Fan's Investment Group.
After many countries in Europe and the United States protested against China's rare earth strategy, Japan, one of the biggest beneficiaries of China's cheap rare earths, also joined the protest camp.
Japanese officials last week called for China to expand its exports rather than restrict its exports of rare earth resources.
Japan's trade ministry said the market price of some rare earth elements has risen by 200 percent since China announced a reduction in exports of rare earth resources. Japan's trade ministry also said that while other countries, such as the United States, also have rare earth resources, China is the only major producer with relatively low prices. However, since the formation of a de facto monopoly by Fan's Investment Group, international rare earth prices have also begun to rise wildly, which has seriously damaged the interests of Japan and other countries.
The Japanese side said. If the Chinese side is unable to change this monopolistic behavior, then the Japanese side will also consider some necessary means to respond.
Just after the Japanese announced these policies, the Japanese side also followed Singapore's criticism of the mistakes of the Chinese central government in the prevention and control work, believing that the achievements of China's economic construction over the past 20 years will be wiped out.
At this time, the high-level also saw that whether it was Singapore that jumped out first, or Japan that jumped out later, their goal is very simple, they are to achieve the goal of actually exchanging actual benefits from China by attacking China at a critical moment, and if they want to shut up, they must be given hush money, and Singapore hopes to be able to enter the financial industry that China has been closed. The Japanese, on the other hand, covet China's system resources.
These two guys are not good birds.
Because rare earth resources are essential for the production of computers, mobile phones, and low-carbon cars, which are thriving in Japan, China's rare earth sales restriction and the resulting price increases. All of them make Japanese companies very nervous. It is reported. Officials from the House of Representatives and cabinet aides from the Ministry of Trade have traveled to China to express concerns about rising rare earth prices to the relevant authorities. The Japanese side also hopes to reiterate this demand at the Sino-Japanese 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 reserves account for only 30 percent of the world's reserves, the CIS reserves account for 22 percent of the world's resources, and the United States accounts for 15 percent. China has 30 percent of the world's reserves. Supplying more than 95% of the world's demand, it is known as gold sold at the price of cabbage. Due to the low price of rare earths in China, the United States closed its rare earth mines in 1985 and imported all of them from China, and Japan also imported a large number of Chinese rare earths for hoarding and strategic reserves.
Previous statistics from the Chinese Rare Earth Society show that. Before Fan's Investment Group controlled the import and export of rare earths in China, China's rare earth production was about 120,000 tons, supplying more than 95% of the world's demand. In addition to China, Russia's rare earth production is 1,500 tons, the United States 1,000 tons, and India's Wujian book is not the same as the body of the clam, which is easy to read
… Giant China ranks first in reserves, production and exports, but it does not have the pricing power of bamboo and rare ten.
However, the application value of rare earth in the industrial field is becoming increasingly prominent, and rare earth is known as the mother of industrial monosodium glutamate and new materials, and has rich and excellent optical, electrical, magnetic, conductive, catalytic and other properties. It is widely used in cutting-edge science and technology fields such as new energy, national defense and military, etc., and is a non-renewable strategic resource.
Therefore. Seeking rare earth pricing power has become the key to the national rare earth strategy.
It is a pity that due to the competing interests of various domestic groups, China has not had the pricing power of rare earths, only after Fan's Investment Group entered the rare earth industry in a big way, controlled the upstream and downstream chains, and greatly increased the price of rare earths, so that China's rare earth industry really obtained economic benefits, and made rare earths become the key for China to grasp the world's future high-tech exhibition.
Government officials in the Inner Mongolia Autonomous Region said. Resource-rich regions are looking to tap into the more lucrative downstream processing industry rather than just supplying raw materials. China does not want to be the world's factory forever.
Reducing export quotas is an important means for China to seek pricing power over rare earths. Since the year Fan's Investment Group entered the rare earth industry, China has gradually reduced its rare earth export quotas, and rare earth prices have risen as a result. With the reduction of production. It is the skyrocketing prices, the workload is less, and the resources are lost, but the profits obtained have increased exponentially, which makes the country see more clearly. Who, exactly, is really doing things for this country.
In late April, the rare earth industry association convened a symposium to discuss the work arrangements for rare earth exports next year, and the rare earth export quota may be further reduced. The Japanese authorities went to China last week to negotiate with the Chinese side to express their concerns about the reduction of export quotas and to seek solutions.
Because of this problem, Fan Wuxian and Shen Peiming's son-in-law and father-in-law had a short video call to agree on a policy to deal with it.
At present, the domestic system resources are basically out of the state of division between the north and the south, the domestic rare earth resources are mainly distributed in the north of Inner Mongolia and the five southern provinces, the north of the rare earth to the wrong, sales, etc., and the south of the minerals are mainly in the hairpin rich minerals.
Fan Wuxian mainly controls the rare earth resources in the north, although there are also some rare earth processing enterprises in the southern provinces, but they do not have an absolute advantage, and some enterprises controlled by Shen Peiming control about half of the rare earth resources in the five southern provinces.
Because of the relationship between Fan Wuxi and Shen Peiming. The two sides have been communicating effectively. Fan's Investment Group mainly focuses on strategic reserves, while Shen Peiming and others control the export quota of rare earth resources, continuously reducing the export volume, and at the same time greatly increasing export prices, and the excess rare earth resources are transferred to Fan's Investment Group at internal prices as national rare earth resource reserves.
At present, the central government is satisfied with the cooperation between the two groups in the north and the south, and also hopes to strengthen the cooperation between the two groups of the North Rare Earth Group with the rare earth enterprises of Fan's Investment Group as the core and the Southern Rare Earth Group with Shen Peiming Company as the core, so as to strengthen China's rare earth industry.
Affected by factors such as rising prices for rare earth products, reduced export quotas for rare earths in China, and cracking down on smuggling of rare earth products, some foreign companies have begun to look for rare earth sources outside China. to alleviate supply pressures. The U.S. Key Mining Corporation recently began preparations to resume work at the Mount Pass rare earth mine, the largest rare earth mine in the United States, which closed 14 years ago, with an estimated annual production capacity of more than 10,000 tons and is expected to be operational in the next two to three years. At the same time, Australia, Canada, Japan, Brazil, Kazakhstan, Vietnam, India and other countries are also implementing or preparing to open rare earth mines.
After Fan Wuzhi and Shen Peiming studied the policy and technical aspects, they believed that with the exhibition of technology, the application fields of rare earth are becoming more and more extensive, and they have made great achievements in new energy, new technologies and new materials. Rare earths are transforming from industrial monosodium glutamate to industrial food. Internationally, electric vehicles, wind turbines, lighting, computer hard disks, mobile communications, etc. all need a large number of applications of rare earths. However, the domestic rare earth deep processing technology has been far behind Europe, the United States, Japan and other countries, can only export primary products, and the huge profits of rare earth deep processing links are left abroad.
"It's extremely bad for us. of trying to bring in the technology. Fan Wuxian said to Shen Peiming, "Although Fan's Investment Group has made some progress in the deep processing of rare earths, there is still a big gap compared with the international advanced level."
"What do you mean? Shen Peiming asked.
"The last time I talked to the prime minister, he was also very concerned about this. In order to promote the exhibition of domestic rare earth technology. The national plan will set up a special fund for major rare earths. The Ministry of Science and Technology will allocate 500 million yuan to support the development and use of rare earths. The National Reform Commission is also using and industrializing rare earth functional materials. As a national strategy to discuss, rare earth functional materials, optical materials and so on may be written into the new five-year plan as a major strategic project, to focus on breaking through a number of key technologies, promote the industrialization of independent intellectual property rights, to achieve the sustainable development of the rare earth industry. ”
All in all, China's rare export restrictions only target rare earth raw materials, but encourage the export of finished rare earth processing products. The implication is that the policy encourages foreign rare earth deep processing enterprises to set up factories in China, so as to promote the exhibition of rare and sharp deep processing technology. Seek the right to speak in the industrial chain.
"At present, there are about 50 foreign-funded enterprises operating in the Baotou Rare Earth High-tech Zone, and the Korea Development Bank has also signed a cooperation agreement with the Baotou High-tech Zone, which will guide South Korean electronics manufacturers and automakers to Baotou to establish rare earth processing plants independently or in partnership with the Chinese side. The representative of the Japanese trading company Mitsui & Co. in China also said that Mitsui & Co. is guiding Japanese companies to invest in the rare earth processing industry in China. Fan Wuxian said to Shen Peiming, "What I mean is that no matter how the domestic situation changes, the initiative must still be in our hands, and we must not take out our interests and feed the dogs because the local government is currying favor with foreign capital to build political achievements."
"The plan is to increase the materials by 30 percent on the current basis." Fan replied. "There are no pop-ups