Roskill: China to Remove Rare Earth Export Taxes in May 2015
LONDON, January 23, 2015 /PRNewswire/ --
The dynamics of rare earths supply are changing again according to a new report from Roskill. On 21 January the Chinese Ministry of Commerce announced that it will remove taxes on export sales of rare earths from 2nd May 2015.
The announcement follows the news on 31st December 2014 that rare earths exports would instead be subject to an export licensing regime. China was widely expected to abolish the quota system and taxes following a World Trade Organisation (WTO) ruling in March 2014 that the tariff and quota system was discriminatory and gave unfair advantage to domestic consumers. Rare earth exports were subject to 15% or 25% tariffs in 2014. The taxes will be retained only until 2 May 2015.
China is the world's dominant exporter and producer of rare earths and has been consolidating supply under a limited number of state-owned enterprises. An increasing proportion of Chinese supply is now required for its domestic industries which account for >70% of total demand for rare earths. New projects in the rest of the world could potentially contribute an additional 45,000t REO to supply by 2020.
The highest growth rates will be seen for the magnetic raw materials, neodymium, praseodymium, dysprosium and samarium, with average annual growth rates of >6% for these rare earths over the forecast period. More than 75% of the magnetic rare earth elements are consumed within China as of early 2015 and this proportion is expected to increase as the Chinese government encourages the development of this downstream industry.
China's economy is entering a new paradigm. At 7.4%, GDP growth in China in 2014 was the lowest in 25 years. This creates new challenges for the global rare earths industry. Most policymakers are only just starting to recognise the far-reaching economic impact of President Xi's recent policies. But it also creates major new opportunities for those companies prepared to restructure their business models.
The rare earths value chain is extraordinarily complex, with multiple players, business drivers, supply models and geopolitical considerations at various stages of production. Executives in the industry need an experienced overview of the end-to-end value chain that provides insight into both potential opportunities and avoidable disruptions.
The 15th edition of Roskill's rare earths report, Rare Earths: Market Outlook to 2020 draws on more than 40 years of independent research into these metals from the world's experts in metals and minerals markets. The report addresses questions such as:
- Can the Chinese rare earths industry bring illegal mining under control?
- What is the outlook, by project, for the >300 new rare earths projects that Roskill has evaluated since rare earths prices spiked dramatically in 2011?
- How much demand, by end use and element, was permanently destroyed by this price spike and in which end-uses are rare earths irreplaceable?
- What are Roskill's predictions, by element, to 2020?
Rare Earths production, trade, prices and end user markets are analysed in detail in the latest edition of Roskill's Rare Earths: Market Outlook to 2020 report, recently updated with an additional two year outlook and to cover the latest developments in China. The 15th edition of this Roskill report profiles producers and end users of rare earths, providing an overview of the entire supply chain.
To order this latest edition of Rare Earths: Market Outlook to 2020 is please contact Christine Duggan by Telephone: +44(0)20-8417-0087, Fax +44(0)20-8417-1308 or Email: [email protected] or visit Roskill Website: http://www.roskill.com/rare-earths.
Note to editors
Roskill Information Services Ltd. of London, UK is a leading provider of multi-client and bespoke market research services to the minerals and metals industry.
Roskill's new Rare Earths: Market Outlook to 2020 report provides a detailed review of the industry, with subsections on the activities of the leading producing companies. They also analyse consumption, trade and prices.
For further information on this report, please contact Robert Baylis on +44(0)20-8417-0087 ([email protected]). To be added to our press distribution list, please contact Pedro Palma ([email protected]).
SOURCE Roskill Information Services
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