Research On Pricing Power In Chinese Bulk Commodities Trade

In recent years, China realized the fast growth of economy and played a more andmore important role in the world system. Though China makes great contribution to thedevelopment of the world economics, we do not have the pricing power in world trade ofbulk commodity. Rare Earth is a necessity in the industrial production, which is used invarious industrial areas. China’s rare earth resource is rich, which occupies a pivotalposition in the international rare earth market, but on the contrary, China can not controlpricing in the rare earth exports. In the period1990to2009, China’s rare earth exportvolume grew by about ten times, but the average price of exports still maintained at thelevel of more than ten years ago. Therefore, the study of rare earth pricing issue isnecessary to improve China’s position in the trade of rare earth.The main content of this paper is as follows: The introduction describes the meaningand background knowledge of the topics, literature review, thesis structure and possibleinnovations; the first chapter is the analysis of the problems of the international pricingof bulk commodity, this chapter describes in detail the definition, category, features ofbulk commodity, and the meaning, scope, characteristics of pricing issues, then discussesthe ability to the status quo of China’s bulk commodity pricing, and then the oil, iron oreand soybean markets as an example, analyzing the existing problem of the threecommodity markets in the pricing, finally analyzing the three influencing aspects of thelack of pricing power, including the impact of inflation, the terms of trade and tradeinterests; the second chapter analyses pricing issues of rare earth resource, a briefoverview is described in the overall situation and the distribution of rare earth resource inChina, and then analyses the situation of rare earth exports from the rare earth products’export volume and the average export price, China is Lack of pricing power of rare earthobtained through the analysis; the third chapter uses the bargaining game model toanalyze the rare earth export pricing, the main influencing factors is drawn in rare earthexport pricing: over-exploitation led to the supply and demand imbalance, domesticdisordered competition, export destination market is powerful, china’s rare earth industryis in the lower end of the industry chain and industry concentration is low; the fourthchapter proposes the corresponding policy recommendations against the reason for thelack of rare earth export pricing, including: standardize the order of the rare earth, form a unified marketing alliance, achieve product upgrading and adjust the industrial structure,develop the domestic futures market and establish and improve a strategic reserve systemfor rare earth resource.