According to reliable sources, the Chinese Central Government will likely increase export taxes and impose export quotas on May 20th for molybdenum. The export tax increase is speculated to be in the range of 10% to 15%, perhaps as high as 20%.
Driven by supply shortages and uncertainty over export policies, molybdenum export prices were hovering in the range of USD 73/kg to USD 75/kg. Molybdenum concentrate market prices rose to within the range of RMB 4,350/mt to RMB 4,450/mt.
CBI believes that the Central Government will likely increase the export tax rate for several metal products in order to protect domestic natural resources and restrict the export of high energy-consuming and polluting metal products.