Rare earths export quota raised
By Richard Fu |
August 23, 2012, Thursday
|
Print Edition
Print Edition
CHINA has increased its annual export quota for rare earths for 2012, after reining in sales in recent years to conserve resources and protect the environment.
The Ministry of Commerce yesterday said the second round of export quota for this year was set at 9,770 tons, which was granted to 24 companies, including Sinosteel, China Minmetals and the Baotou Iron and Steel Group.
This brought this year's total quota to 30,996 tons, compared with 30,184 tons for 2011. The ministry typically issues two tranches of quota each year.
China's export quota is closely watched because the country supplies more than 90 percent of the world's demand for rare earths, a group of metallic elements vital for manufacturers in industries such as defense, renewable energy and electronics.
China began cutting the export quota from 2009 as part of its efforts to conserve resources and protect the environment after years of rampant exploration and mining. The curbs triggered a rally in rare-earth metal prices on the global market, worrying trade partners, including the United States and Japan, but also promoting overseas firms to re-start some mines.
Still, the quota system seemed to be increasingly symbolic, with exporters leaving about 40 percent of last year's quota untapped. Exports dropped 36.7 percent in the first seven months of this year, customs data showed on Tuesday.
Industry officials have blamed smuggling for the situation. The smuggled amount was 1.2 times China's official export volume in 2011, Xinhua news agency reported, citing Ma Rongzhang, secretary-general of the Association of China Rare Earth Industry. The illegal sales figure was calculated based on import data released by other countries.
The Ministry of Commerce yesterday said the second round of export quota for this year was set at 9,770 tons, which was granted to 24 companies, including Sinosteel, China Minmetals and the Baotou Iron and Steel Group.
This brought this year's total quota to 30,996 tons, compared with 30,184 tons for 2011. The ministry typically issues two tranches of quota each year.
China's export quota is closely watched because the country supplies more than 90 percent of the world's demand for rare earths, a group of metallic elements vital for manufacturers in industries such as defense, renewable energy and electronics.
China began cutting the export quota from 2009 as part of its efforts to conserve resources and protect the environment after years of rampant exploration and mining. The curbs triggered a rally in rare-earth metal prices on the global market, worrying trade partners, including the United States and Japan, but also promoting overseas firms to re-start some mines.
Still, the quota system seemed to be increasingly symbolic, with exporters leaving about 40 percent of last year's quota untapped. Exports dropped 36.7 percent in the first seven months of this year, customs data showed on Tuesday.
Industry officials have blamed smuggling for the situation. The smuggled amount was 1.2 times China's official export volume in 2011, Xinhua news agency reported, citing Ma Rongzhang, secretary-general of the Association of China Rare Earth Industry. The illegal sales figure was calculated based on import data released by other countries.
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