China Reduces Rare Metals Export Quota for 2009

Chinese government released export license of rare metals for 2009. The country reduced the quota by 2% from 2008 for tungsten and antimony, for which China represents 90% of world production, while the country reduced the quota by 30% for tin and by 3% for molybdenum and indium. Japanese rare metal suppliers see the limited reduction could have little impact on the international market.

Japanese interests see the reduction is limited after China reduced the quota by 3.2% for tungsten and by 3% for antimony in 2008 from 2007. Chinese bypass export also contributes to the stable supply when China increases the antimony trioxide export while the country reduces antimony ingot. Japanese buyers also try to develop other import sources in North and South America while the buyers improve recycling rate.

Japanese buyers concern quota for rare earth, for which China represents more than 90% of world production. China reduced the quota to 34,156 tonnes in 2008 from 2007. Japanese interests expect such reduction could impact on international market.