Market Interpretation of China’s Rare Earth Export Tariff Removal

SHANGHAI, Apr. 24 (SMM) – The removal of rare earth export tariffs in China will help increase China's rare earths prices the near term, Chinese analysts believe.

“Export prices of rare earths will drop noticeably after the elimination of the export duties, pushing up China’s rare earths exports, as such rare earth in domestic markets may pick up in the short term,” an analyst at BOC International said.

In addition, many analysts expect the central government to introduce relatively high resource tax. China has been mulling resource tax reform late 2004, but no details have been disclosed thus far.

Some also hold that the government many turn its attention to rare earth production regulation, which will also bode well for rare earths prices in China.

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