China rare earth demand seen rising 50 pct by 2020
SHANGHAI, Sept 17, 2015
Chinese rare earth demand is likely to soar by more than 50 percent in the next five years
Chen Zhanheng, vice-secretary general of the Association of China Rare Earth Industry, told a conference in Shanghai that domestic consumption was expected to rise nearly 9 percent this year to 97,700 tonnes, and would end the decade at nearly 150,000 tonnes, up from 90,000 tonnes in 2014.
With China expected to export at least 30,000 tonnes through official channels this year, the production cap of 105,000 tonnes is unlikely to satisfy total demand, meaning that there are still incentives for illegal producers.
China's controversial reform plans for the rare earth sector have included strict production and export quotas as well as a nationwide crackdown on illegal mining and processing. Plans to consolidate production in the hands of six state-owned conglomerates are also due to be completed by year-end.
China said the policies were designed to curb pollution, ....
China not only produces around 90 percent of global rare earth supplies, but also consumes about 80 percent, according to industry estimates, and demand is set to continue rising.
Dudley Kingsnorth, executive director of the Industrial Minerals Company of Australia, said there will be a supply shortfall of 50,000 tonnes this year ........
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