China to increase rare metals' export tax(commodity price rising?)

China Daily ^ | 05/28/07 | Tu Lei

[TigerLikesRooster]

China to increase rare metals' export tax

By Tu Lei (chinadaily.com.cn)

Updated: 2007-05-28 17:07

China will raise export taxes on a range of rare metal products, including tungsten, rare earth, and molybdenum, from June 1, in a bid to protect resources from running out, said Wu Rongqing, an official with the Customs Tariff Commission of the State Council.

The policy says the increased export tax on tungsten, rare-earth, and molybdenum is 15 percent, and tariffs on molybdenum oxide, ammonium molybdate, and natrium molybdate range from a five to 15 percent increase compared with the tax rebate policy on rare metals in the 1980s and 1990s.

The export tariff on tungsten increased to 15 percent from 10 percent, which is the fourth export tax increase since last year.

China supplies more than 70 percent of tungsten, but new figures show China only accounts for 35.5 percent of the world's basic reserves, dropping from 45 percent years ago. Meanwhile, domestic tungsten consumption has increased as well, with 23,500 tons in 2006, up 5.4 percent from that of 1997.

As for rare earth, China canceled the tax rebate in 2005, and collected a 10 percent export tariff on rare-earth oxide in November 2006. But export volumes still soared, a nine-fold increase from 1990.

Experts predict that Baotou Baiyunebo thulium reserves, the world's largest rare-earth reserve, will disappear in 30 years at current speed of consumption. And rare-earth resources in Ganzhou City, East China's Jiangxi Province, will be used up in 20 years.

The government will keep increasing rare metal's export rate according to market situations, said Wu, adding the extent will depend on the practical effects brought by current export taxes.

[TigerLikesRooster]

Ping!

[snowsislander]

Politicians around the world like to raise taxes; with the production cost advantage that Red China has, this export tax will probably not have much effect on their sales but I think it will add to the PRC’s coffers.

[traviskicks]

I guess China hasn’t heard of the Ehlrich/Simon debates...:

http://www.overpopulation.com/faq/People/julian_simon.html

:)

[live+let_live]

China doesn’t want to ‘un-peg’ its currency from the dollar.

But the dollar has fallen so far in relation to others in the world that China is facing a dilemma.

[Moonman62]

China supplies more than 70 percent of tungsten, but new figures show China only accounts for 35.5 percent of the world's basic reserves, dropping from 45 percent years ago.

An unintended consequence of pegging their currency too low.

[Overtaxed]

Can’t we just extract those metals from China’s food exports? /s

[kittycatonline.com]

China will raise export taxes on a range of rare metal products, including tungsten, rare earth, and molybdenum, from June 1, in a bid to protect resources from running out

Funny, there doesn't seem to be any slowdown on the volume of manufactured stuff flowing out from China. I'm sure if you wanted to buy a million tungsten-filament light bulbs, you'd get them. Need a million hard-drive mechanisms using rare-earth magnets? Done! Molybdenum? Well, you must be using it to build something, right? We'll build it for you. Then you can have your moly-whatever.

[PghBaldy]

I read the other day of a US manufacturer (I know) complaining China prices finished goods below the cost of the raw materials. I think it was faucets.

[jrushing]

the world's largest rare-earth reserve, will disappear in 30 years

I hope there's something left, I kinda liked them. I just wanna Celebrate!

[Tainan]

The PRC has completely dominated the furniture making business in the USA. Their exploitation of rare hardwoods, which I am aware are a renewable resource - but it takes 50 - 100 years for this stuff, along with shoddy manufacturing combines with rock-bottom costs have turned the fine furniture world on its head here.

And cheapo stuff from el Mehico hasn’t helped wither.

[PghBaldy]

The thing that gets me is when economists and talking heads say how wonderful cheap stuff from China is. It is true that many costs have fallen, but so has quality. Appliances that used to last decades now only last years. Now, when something is on sale that I use constantly (fans) I but as many as I can store in my apt. Have we TRULY saved money by “allowing” China to make everything?