new from metal pages: increase export tax

Good news for LYC - market prices FOB should move up to reflect this cost to Chinese producers - may also explain the quiet market at present

China poised to raise rare earth export duties

BEIJING (Metal-Pages) 26-Sep-07 Chinese export duties for rare earths are likely to increase in the near future, according to Chinese industry insiders.

According to some industry sources, another 5% is due to be added on top of the existing rare earth export duties. “It is still not certain when the official statement will be announced in the future, but the related documents have been drawn up by the government, with export duties further lifted up by 5%,” said the source.

In late May, the Chinese government had imposed 10% export duties for a number of rare earth oxides and added another 5% duties for on rare earth concentrates exports which had been taxed at 10%, effective June 1.

“In order to protect the development of rare earth resources, the government would impose higher duties on their export,” said an executive of a Jiangxi-based producer. The official revealing that over the past few weeks the company had not signed long-term contracts with overseas buyers due to the rumor that export duties would further increase.