China to Increase Export License of Rare Earths and Antimony for 2010

Chinese government released the first export license (EL) of rare metals for 2010. The country increased the quota by 15% for antimony and by 8% for rare earths compared with the first quota in 2009. Antimony is mainly used as flame retardant for plastics. Rare earths are used for permanent magnets. Meanwhile, the quota was decreased by 10% for tin and by 2% for tungsten. Tungsten is the main material for cemented carbide tools. The quota was increased by 1% for molybdenum, used as an additive for steel products. The country set the quota unchanged for indium, the material for transparent electrode of liquid crystal panels.

Chinese government has gradually reduced EL mainly for rare earths, tungsten and antimony. China occupies more than 80% of global productions for these minerals. The country aims to secure these minerals for domestic consumption when Chinese economy keeps strong growth. Especially the government has decreased EL for rare earths by 26% since 2006.

The government added molybdenum and indium for EL in 2008. At the same time, the country restricted rare metal exports by introduction and raise of export tariffs in and after November 2006. Chinese government’s export policy is one of the factors to impact international rare metal spot prices.

The country may decrease EL volume for rare earths, molybdenum and antimony at the second quota for 2010, which would be announced in summer.