RARE EARTH ELEMENTS
Nowadays, the civilization of the world has been moved forward to IT technology and advanced engineering technology. This means many people is using mobile devices, computers and televisions for social, wind turbines and advanced battery system for green energy, and so forth. The essential needs to make for those devices are the rare earth elements (REE) what are the fifteen lanthanides plus scandium and yttrium as defined by International Union of Pure and Applied Chemistry (IUPAC). Around 1950s, India, Brazil and South Africa were the leaders of the world’s REE production. But the Mountain Pass REEs mine from California took this status from 1960s to 1980s. However, China, today’s leader of the REEs production, has about 95 percentage of the world’s REE supply rate and is willing to overwarm in this market by selling finished goods instead of selling raw materials. It was obvious because of her enactment in 2010 which is restricting export rules for rare earth mantels. In this essay, I am going to analyse market structure, whether China has monopoly power or not in this types of business and how affect to the global market of finished goods such as flat-screen TV monitors.
First of all, the demand for the rare earth metals is huge which was estimated about 136100 tons in 2010. According to Industrial Minerals Company of Australia, the world’s REEs demand will increase to 185,000 tons in 2015 and the REEs production rate of China will be 75 percent which is approximately 140,000 tons. By seeing this production rate, it seem like China has a market source to be monopoly in REEs market area. China has this kind of power because of world’s REEs supply chain issue and geographic. Before now, Mountain Pass REEs mine from United State was produced a significant amount of REEs in order to fulfil the consumption rate from the world. But American government shut down this mine by a reason for environmental issue. Another factors are the areas where had REEs had been
First of all, the demand for the rare earth metals is huge which was estimated about 136100 tons in 2010. According to Industrial Minerals Company of Australia, the world’s REEs demand will increase to 185,000 tons in 2015 and the REEs production rate of China will be 75 percent which is approximately 140,000 tons. By seeing this production rate, it seem like China has a market source to be monopoly in REEs market area. China has this kind of power because of world’s REEs supply chain issue and geographic. Before now, Mountain Pass REEs mine from United State was produced a significant amount of REEs in order to fulfil the consumption rate from the world. But American government shut down this mine by a reason for environmental issue. Another factors are the areas where had REEs had been