Study On The Pricing Power Of Rare Rarth Of China

Rare earth is China's advantage mineral resources, which plays an irreplaceable role in magnetic, optical fiber communication, hydrogen storage material such as energy and superconducting .It directly affect the optical instruments, electronics, aerospace, nuclear high technology industry's development speed and level. Therefore it has become the world's important strategic reserves. The rare earth of china is ranked first in all aspects, but because the comprehensive reasons, China doesn't have pricing power in the export of rare earth.This study based on international market situation of Chinese rare earth export , analyzes the situation of international trade and export trade's structure, then analyzes quantitatively to the pricing power of China's rare earth export, including the comparative between export price and international price, pricing and granger causality text. Through quantitative analysis, we know that China is short of pricing.This study analyzes the reason of Chinese rare earth's lack of export pricing. The factors affecting the pricing is relatively broad, including industry factor, enterprises and government factors and other factors. Through the analysis, we know that the reasons of the lack of pricing power are unbalanced supply and demand, lack of pricing centre, low value-added products, the enterprise competition etc.This study puts forward suggestions of getting pricing power. Firstly, we must establish futures market. Secondly, we should improve the rare earth industry concentration and get rid of backward production. Thirdly, we should improve product's added value. Fourthly, we should establish a scientific and reasonable price system. Fifthly, we should increase the rare earth resources strategic reserves.