China Lowers Rare Metal Export Tariffs on 1 July

Chinese government announced the down revision of its export tariffs on rare metals. The export tariffs on tungsten, molybdenum and indium will be lowered from current 10-15% to 5% on 1 July. The government has tightened rare metal export by tariff control and other measures to meet domestic demand. However, the government seems to loosen export regulation temporarily when supply and demand balance of rare metals became easier in the country due to economy downturn.

China is the largest tungsten producer in the world, who occupies 80% of the global output. Chinese government has put 10% export tariff on tungsten while gradually minimized tungsten export volume by introduction of export license (EL) system to secure domestic resource and meet domestic demand from such an application as cemented carbide tools.

However, the demand turned worse from automobiles and electric appliances along global economy deterioration. Domestic demand for tungsten declined in China. Consequently the government lowers export tariff on APT (ammonium para-tungstate) to 5% to improve domestic producers’ profitability.

The government has also put export tariffs on indium and molybdenum as well as introduction of EL system in 2008. The current export tariff is 15% for ingot and 10% for powder. The government lowers the tariffs to 5% when domestic supply and demand balance is loosing as same as tungsten.