Chinese Rare Earth Export Pricing Research In The Context Of Resource Security

Since the reform and opening up, China rare earth industry has achieved rapid development, and long-term prospect of the use of rare-earth in the world is still being optimistic. Currently reserves of rare earth in China accounted for about36%, supplying more than90percent of the world’s rare earth market, however, under a huge seller’s market, China’s rare earth industry can’t obtain high monopoly profits as much as OPEC and the three major iron ore companies, on the contrary, in the past two decades, export prices of Chinese rare earth were seriously low, there are many problems in structure of export trade, mainly because of the lack of the international pricing. Selling resources at a cheap price is to become the bottleneck restricting China’s sustainable economic development, and also have negative influence in security of resource and economic. Based on these, I want to analyze the situation of rare earth in China and the whole world, and research in the pricing mode of iron ore, oil and other resource commodities, intend to study the price of China’s rare earth formation mechanisms, and to explore to improve the ability of China’s rare earth export pricing suggestions.First, I analyze the basic situation of the distribution and reserves in the world, the world’s supply and demand pattern. Select the relevant export data from1987to2011of Chinese rare earth to analyze the structure of export trade, the low price is one of the main problems in the rare earth exports.Secondly, from the enterprise level, government level and international level, three-part deep-seated are the reasons of lack of pricing.Again, I analyze the current price formation model of China’s rare earth industry, while drawing on the pricing mechanism of crude oil futures pricing mechanism, as well as iron ore negotiations, explore the mode of the pricing mechanism for rare earth and rare earth products, search for the suitable price formation mechanism of rare earth.Finally, in the context of resource security, the futures market to establish and improve, integration of the rare earth industrial chain, increase investment in R&D to establish the system of strategic reserves of rare earth, rare earth industry to develop a unified policy measures to fight for rare-earth pricing in order to achieve rare earth and rare earth products, prices return to a benign reasonable level to reflect the value of scarce resources more effectively. The establishment of strategic reserves of rare earth system, combined with the recommendations of the rare earth reserve system in Japan and the EU’s experience of the oil reserve system.