China to Cut Rare Earth Export License in 2009

Chinese government released the first export license (EL) of rare earths for 2009. The country set the quota at 15,043 tonnes for the first half of 2009, decreasing by 34% compared with the first-half quota in 2008. The government announces EL for rare earths in January and July every year. The second-half quota is expected not to increase from the first-half since China has recently reduced its mineral resource exports. Chinese rare earth EL may become less than 30,000 tonnes through 2009.

In 2008, the country set the first quota for rare earths at 22,780 tonnes and the second quota at 11,376 tonnes. The annual EL totaled 34,156 tonnes, cut by 22% from the previous year. The government set the first quota of 2009 at 15,043 tonnes. The number of licensed enterprises was 20 for the first quota of 2009, reduced from 23 companies at the first quota of 2008 and 25 companies at the second quota of 2008.

Chinese government has gradually reduced EL volume for rare earths. The annual EL would not reach 30,000 tonnes in 2009. However, Japanese rare metal importer said that the EL reduction was predictable and that rare earth users, such as magnet makers, are holding material inventory built up in 2008. Consequently, the EL reduction of this time seems not to affect Japanese rare earth import prices.

China has also reduced EL for tungsten and antimony, those which the country represents 80% production shares in the world. The government cut the EL for 2009 by 2% year-on-year, announced in October 2008. China adopted EL system for molybdenum and indium, and set 3% lower EL for 2008 than the previous year.