China to Secure Domestic Supply for Rare Metals

Chinese government announced recently the country revised tax return for nonferrous metals export. China terminated he tax return for antimony, tungsten and tin after December 15 compared with traditional 5% of tax return. World largest rare metal producing country of China tries to reduce the export, which could result in higher international market for rare metals. China terminates the tax return on December 15 and the country has shifting period. The exporters have to register to tax authorization by September 30 for order receipt by September 14 to secure 5% of tax return for shipment before December 15. China reduced the tax return from 13% to 8% for antimony, tungsten and tin in May 2005. The country reduced the return to 5% in January 2006. The international market surged due to the higher costs for Chinese exporters. The price increased for antimony and tungsten, for which China represents 80% of world supply, due to speculative purchase. International price of antimony increased by around 50% and stays at around US$ 5,000 per tonne from US$ 3,800 between September 2005 and early 2006. The price of ammonium paratungstate, which is intermediate material of tungsten, also keeps the high level of US$ 260 per 10 kilogram of tungsten trioxide.