China Raises Tariff for Rare Earth and Other Metals

Chinese government announced on Wednesday it increases the export tariff for some metals including rare metals and rare earth effective on January 1. The tariff increases to 5 or 10% for tungsten and antimony related products and to 10% for rare earth related products. The country finally revoked the export tax return for nonferrous metals after December 15. The country tries to secure the resources for domestic demand by increasing the tariff. The country increases the export tariff for metal products including tungsten, antimony, molybdenum, manganese, chrome and stainless ingot. The country adds 5-10% tariff for processed tungsten products including tungsten carbide and ferrotungsten from current free tax. The export tariff for total industrial products increases to averaged 8.95% after the new system, according to Japanese trading firm sources. China produces more than 80% of world output of tungsten, antimony, molybdenum and rare earth. The demand increases for tungsten in cemented carbide tool, for antimony in fire retardant and rare earth in magnet and fluorescent substance worldwide. The demand also increases in China and the country imports tungsten and antimony ore from Russia and other neighbor countries. China shifts the policy from resource export encouraging to securing the resource for domestic usage under the growing domestic demand for rare metals and rare earth. The country reduced the export tax return for tungsten and antimony in May 2005 and January 2006 terminating the return after December 15.