Chapter 1205 Price Increase Plan
Fan Investment Group's exhibition in African mining industry finally caused another concern.
Japan's major financial groups have begun to pay close attention to Fan Investment Group's mineral investment in Africa. As a country with scarce resources, Japan has great ambitions for overseas minerals. Especially for investment in iron ore, it has always been very sensitive.
It's just that this time the African iron ore problem is a bit strange. The original Europeans wanted to use China's connections and irregular policies to obtain a large amount of titanium metal. At the same time, they can also export iron ore at a high price. However, because of Fan Wubing's discovery, it caused a loss of rice. Now the titanium-iron mixed ore is firmly in the hands of Fan Investment Group.
However, the Japanese side also believes that even if Fan Investment Group has the ownership of several large narrow iron mixed mines, it is unlikely for the Chinese who do not have the corresponding separation and beneficiation technology to solve this global problem. Even Japan currently has no better way to achieve this goal.
Nevertheless, this also made the Japanese see the enthusiasm of Fan Investment Group 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, the development space left for the Japanese will be more, which is intolerable.
Previously, when investing in the Australian iron ore project, the Japanese felt that they were one step behind Fan Investment Group, resulting in the loss of a large-scale iron ore. This time, Fan Investment Group began to build an industrial base in Africa. The Japanese believed that Fan Investment Group must not be allowed to continue to expand in mineral resources, otherwise, Japan's mineral policy will be on the verge of bankruptcy.
What made the Japanese particularly angry was that the mineral resource transfer prices of various countries where Fan Investment Group passed through rose sharply, making it increasingly difficult for them to get a bargain. This is bad news.
If Japan has a large investment in resources, then the impact on the national economy will be quite large, which is a weight that the Japanese cannot bear.
Fortunately, this time China broke out the ** epidemic, and the whole country is currently busy fighting **. Prevention and control of the epidemic, especially Singapore jumped out and openly attacked the Chinese government's mistakes in epidemic prevention and control, setting off an international wave of **. This made the Japanese feel that there was an opportunity.
Not long ago, the Inner Mongolia Autonomous Region officially issued a document to clarify that the rare earth strategic resources in the entire autonomous region are exclusively operated by the Rare Earth Application Technology Development Corporation under Fan Investment Group. At the same time, the five southern provinces and regions jointly signed the Joint Action Plan for the Development and Supervision of Rare Earth Resources. The Rare Earth Technology Research Institute under Fan Investment Group convened a symposium with major rare earth companies to discuss the arrangements for rare earth exports next year. Rare earth export quotas may be further reduced.
However, the Rare Earth Industry Association, which was established under the leadership of 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 reveals the purpose of the country's rare earth strategy. It is no longer a raw material exporter, but hopes to introduce more deep processing technologies and seek the right to speak in the industrial chain.
As the Chinese government and Fan Investment Group have strengthened the control of rare earth resources, developed countries that previously relied heavily on China's rare earth exports have begun to transfer deep processing projects to China. Or look for or restart the development of rare earth resources elsewhere.
For example, the Americans are considering restarting the development of domestic rare earth minerals to deal with the monopoly of China's rare earth industry led by the Fan Investment Group.
After many European and American countries 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 called on China to expand, rather than restrict, the export of rare earth resources last week.
The Japanese Ministry of Trade said that since China announced a reduction in the export of rare earth resources, the market price of some rare earth elements has risen by 200 percent. The Japanese Ministry of Trade also said that although other countries such as the United States also have rare earth resources, China is the only major producer with a relatively low price. However, since the Fan Investment Group has formed a de facto monopoly, international rare earth prices have also begun to soar, causing serious damage to the interests of Japan and other countries.
The Japanese side said. If China cannot change this monopoly, then Japan will also consider taking some necessary measures to respond.
Just after the Japanese announced these policies, Japan, following Singapore, criticized the mistakes of the Chinese central government in preventing and controlling the epidemic, believing that the epidemic would make China's economic development achievements over the past two decades vanish.
At this time, the top leaders also realized that whether it was Singapore, which jumped out first, or Japan, which jumped out later, their goal was very simple, which was to achieve the purpose of actually exchanging actual benefits from China by attacking China at a critical moment. If they wanted to shut them up, they would definitely have to pay them hush money. Singapore hoped to enter China's closed financial industry. The Japanese coveted China's system resources.
These two guys are not good birds.
Because rare earth resources are crucial to the production of computers, mobile phones, and low-carbon cars, which are booming industries in Japan, China's rare earth sales restrictions have resulted in price increases. All make Japanese companies feel very nervous. It is reported that. Officials from the Japanese House of Representatives and cabinet aides from the Ministry of Trade have traveled to China to express concerns about rising rare earth prices to relevant departments. Japan also hopes to reiterate this request at the Sino-Japanese economic talks to be held next week.
The total rare earth resource reserves in Quanzhou are 90 million tons, of which China's rare earth resource reserves only account for 30% of the world's, the CIS's resource reserves account for 22% of the world's, and the United States accounts for 15%. China accounts for 30% of global reserves. It supplies more than 95% of the world's demand, and it is called gold and sells for a cabbage price. Due to the low price of rare earths in China, the United States closed its rare earth mines in 1985 and imported all rare earths from China. Japan also imported large quantities of Chinese rare earths for hoarding and strategic reserves.
Previous statistics from the China Rare Earth Society show that. Before Fanshi Investment Group controlled domestic rare earth imports and exports, China's rare earth output was approximately 120,000 tons, supplying more than 95% of global demand. In addition to China, Russia’s rare earth output is 1,500 tons, the United States is 1,000 tons, and India’s output is 1,500 tons.
...China is ranked first in reserves, output, and exports, but it does not have the pricing power of China.
However, the application value of rare earths in the industrial field has become increasingly prominent. Rare earths are known as industrial monosodium glutamate and the mother of new materials. They have rich and excellent optical, electrical, magnetic, conductive, catalytic and other properties. It is widely used in cutting-edge scientific and technological 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.
Unfortunately, due to the competing interests of various domestic groups, China has never had the power to price rare earths. It was only after Fan Investment Group entered the rare earth industry in a large scale and controlled the upstream and downstream chains that it significantly increased the price of rare earths, allowing China's rare earth industry to truly gain Economic benefits, and make rare earths the key to China's future high-tech development in the world.
A government official from the Inner Mongolia Autonomous Region said. Resource-rich regions hope to enter the more profitable downstream processing industry, rather than just providing raw materials. China does not want to be the world's factory forever.
Reducing export quotas is an important means for China to seek rare earth pricing power. Since the year Fanshi Investment Group entered the rare earth industry, China has gradually reduced rare earth export quotas, and rare earth prices have also risen as a result. As production decreases. It's because of the skyrocketing prices, the workload is less, and the resources lost are less, but the profits gained have increased exponentially, which makes the domestic situation clearer. Who is really doing something for this country?
In late April, the Rare Earth Industry Association convened a symposium with major rare earth companies to discuss next year's rare earth export arrangements. Rare earth export quotas may be further reduced. Relevant Japanese departments went to China to negotiate with China last week in order 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 father-in-law to discuss the response policy.
At present, domestic system resources are basically out of the state of north-south division. Domestic rare earth resources are mainly distributed in Inner Mongolia in the north and five provinces in the south. Rare earths in the north are mainly sold, while minerals in the south are mainly sold in China. Mainly minerals.
Fan Wubing mainly controls rare earth resources in the north. Although there are some rare earth processing companies in the southern provinces, they do not have an absolute advantage. Some companies, including those 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 mainly focuses on strategic reserves, while Shen Peiming and others control the export quota of rare earth resources, constantly reducing export volume, and significantly increasing export prices. The excess rare earth resources are sold to Fan's Investment Group at internal prices. As a national rare earth resource reserve.
At present, the central government is quite satisfied with the cooperation between the two groups. At the same time, it also hopes to strengthen the relationship between the two groups: the Northern Rare Earth Group with the rare earth enterprise of Fanshi Investment Group as the core and the Southern Rare Earth Group with Shen Peiming Company as the core. Cooperation between countries will strengthen China’s rare earth industry.
Affected by factors such as 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 China. to relieve supply pressure. The American Key Mining Company has recently begun preparations to resume the operation of the Mountain Pass rare earth mine. The mine is the largest rare earth mine in the United States and was closed fourteen years ago. It is expected to have an annual production capacity of more than 10,000 tons and is expected to open within the next two to three years. put into production. At the same time, Australia, Canada, Japan, Brazil, Kazakhstan, Vietnam, India and other countries are also implementing or 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 are becoming more and more extensive, and they have great potential in new energy, new technologies, and new materials. Rare earths are transforming from industrial MSG to industrial food. Internationally, electric vehicles, wind turbines, lighting, computer hard drives, mobile communications, etc. all require large amounts of rare earths. However, domestic rare earth deep processing technology has always lagged far behind developed countries such as Europe, the United States, and Japan. It can only export primary products, and the huge profits from the rare earth deep processing link are kept abroad.
"This is extremely detrimental to us. We have to find ways to introduce technology." Fan Wubing said to Shen Peiming, "Although Fan Investment Group has made some progress in rare earth deep processing, compared with the international advanced level, There is still a big gap
"What do you mean?" Shen Peiming asked.
Fan Wubing said, "The last time I talked with the Prime Minister, he also expressed great concern about this. In order to promote the development of domestic rare earth technology, the national plan will set up major rare earth special funds. 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 studying the application and industrialization of rare earth functional materials as a national strategy. Rare earth functional materials and optical materials may be included in the new five-year plan as major strategic projects, and efforts must be concentrated. Break through a number of key technologies, promote the industrialization of independent intellectual property rights, and achieve 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 companies to set up factories in China, thereby promoting the development of rare earth deep processing technology. Seek the right to speak in the industrial chain.
"There are currently about 50 foreign-funded companies 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, either independently or in partnership with the Chinese side. Establish a rare earth processing plant. The representative of 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. "What I mean is that no matter how the domestic situation changes, take the initiative. The power still needs to be in our hands. We must not feed our interests to the dogs just because the local government is trying to please foreign capital to achieve political performance.
"The plan is to increase the various materials by another 30% based on the current level." Fan Wubing replied. "