On April 23, 2015, China decided to eliminate tariffs on rare earths and other such as tungsten, molybdenum and fluorspar starting from May 1 according to the Chinese Ministry of Finance. This might be the end an international trade dispute caused by this controversial policy.
China is the biggest producer and consumer of rare earths and responsible for approximately 93% of the world’s rare earth output, but in 2009 the country imposed export restrictions in an attempt to develop its own industry. As a reminder, rare earths are crucial elements for the manufacturing of a wide range of high tech devices, mobile and smart phones, products in the automotive industry etc.
After the implementation of the export tax ,an abrupt reduction in export quotas in 2010 left traders short and froze a high demand on the global market.
As a response to the abolishment of the tax , Bejing will put in place reforms to keep a certain control on its market: today’s chinese rare earth export tax rates currently range from 15 to 25%: 15% for light rare earth elements and 25% for heavy rare earth elements but Bejing will implement a rare earth resource tax on domestic rare earth products.
The abolition of this restriction could push up the demand of rare earth demand on the global market and has already pushed a number of market speculation.
Forecasting the boom of demand and export of rare earth products , Shanghai Metal Corporation offers a wide range of rare earth metal products . You can visit the company’s website , contact us and follow us on twitter and facebook for more information and news on metal
source: bloomberg.com and www.mining.com
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Houria // SMC Editor