China’ Rare Metals Export Cut Causes Supply Worry

World largest rare metal producing country of China tightens the export restriction. The country could control the export of molybdenum and indium, for which the country represents around 30% of world production, after the country already controls export of rare earth, tungsten and antimony, for which the country represents more than 80% of world production. Japanese trading firm source said China will control the export quota for molybdenum and indium sooner or later though the country already controls the export to eligible traders. China permits export of molybdenum, which is used for steel making additive, only for eligible traders but Japanese trading firm said China will surely control the export quota through export license. China also controls export of indium, which is used for transparent conductive film for liquid crystal panel, to eligible traders. However, Japanese traders see China could control the export through export license. American Metal Market reported on Wednesday a trader said Chinese export license would be annual 150-200 tonnes. China controls export of rare earth, tungsten and antimony through export license. The country reduced the quota year by year and decided to reduce by 3% to 15,400 tonnes for tungsten and to 61,800 tonnes for antimony for 2007 from 2006. Japanese trader said China will surely reduce the export quota by 10% for rare earth in 2007 from 2006 after the country reduced the quota by 10% to 45,000 tonnes in 2006 from 2005 though the country didn’t disclose the quota yet for 2007. Chinese rare earth export is stopped due to delay of the issuance of the export license. Some users couldn’t secure the materials due to the delay though Japanese magnet makers keep the operation with the inventory.