Export Tariff of Rare Earth Will Be Canceled after May 2nd

Neodymium Magnets Manufacturer China Rare Earth Magnet Limited

On January 21st, in the first routine press conference of Ministry of Commerce in 2015, Shen Danyang, press secretary, indicates that according to change of domestic and foreign market, approved by State Council, Ministry of Commerce decides to cancel export quota of rare earth from January 1st and retains export tariff till May 2nd, 2015.

This means that after the elimination of export quota, timetable of export tariff of rare earth which draws much attention has been eventually specified.

In recent years, China government makes full use of economic and market means, takes a series of measures, strengthens export management of rare earth permanent magnets and promotes sustainable and healthy development of neodymium rare earth magnets industry in order to effectively protect and reasonably use rare earth resource, standardize market order, change development mode and realize industrial upgrading.

Shen Danyang says that cancel of rare earth is a trade policy choice for coordinating foreign and domestic market and two resources, which is not only a measure for reform of rare earth permanent magnets resource management, but a policy regulation for WTO’s ruling.

He declares that China will continue protecting resource products, promoting environmental protection, vindicating fair competition and realizing sustainable development according to WTO rules.

But comparing with elimination of rare earth export quota, export tariff attracts more attention, because the latter will bring larger impacts on rare earth neodymium magnets , even the whole rare earth market. “Abrogation of rare earth has less influence on current market. But if export tariff is abolished, government will also regulate the resource tax. Rare earth is national strategic resource, of which price will not drop back to low level. China will regulate export volume and price of rare earth in every respect.” Du Shuaibing says when interviewed by The First Financial Daily.

So far, six big rare earth manufacturers have acquired approval from Ministry of Industry and Information. From now on, production, sales and circulation of rare earth permanent magnet industry will become more standard and orderly. In addition, from May, 2015, related departments have stricken illegal mining and smuggle of rare earth for four years. Especially in 2014, 8 ministries including Ministry of Industry and Information cracked down on illegal behavior of rare earth, which can to some extent counteract negative impact on elimination of export quota and export tariff.

What’s worth paying attention to is that resource tax of rare earth should be increased, and that can fill the gap of cancel of rare earth export tariff.

Du Shuaibing analyses, “Increase of rare earth resource tax brings influence on separation cost of rare earth. Specifically, it increases regular cost of legal rare earth neodymium magnet manufacturers. But with advantage of cost, illegal rare earth manufacturers will become more rampant.”

Therefore, the future working focus is to fight against private mine and reduce market supply. Besides, through big groups’ integration, rare earth industry will be further managed. “Government can control rare earth in many aspects. For a long term, the important role of rare earth can not be neglected and it will have a good developing trend.”

China Rare Earth Magnet Limited
Tags: China Magnet, Permanent Magnet, Neodymium Magnet

Rare Earth Permanent Magnet Industry Will Usher Rapid Development Period Again

Neodymium Magnet Manufacturer China Rare Earth Magnet Limited Growth Chart of Global Rare Earth Neodymium Permanent Magnet Output
In 21st century, NdFeB magnet industries in Japan, America and Europe get slowdown in different degrees, but extraordinary development of China permanent magnet industry enable global sintered neodymium magnet industry to keep a sharp growth trend.

Academician Wang Zhenxi says that magnets output of China covers most of the global output. It is expected that rare earth magnet industry will usher a new rapid development period, which is boosted by new demand of low carbon economic industry, such as new energy cars and energy conservation motors.

With many years of innovation and development, China Rare Earth Magnet Limited developed neodymium wind turbine magnets, set up three production lines, produce large quantity of N35-N52 magnets every year. NdFeB permanent magnet industry has rapidly become a representative industry of China new material industry, which occupies 80% of global market share.

Under the impact of China neodymium magnet industry, structure of global magnet industry has a big adjustment from the end of 20th century to the beginning of 21st century. In 21st century, Wang Zhenxi believes that China rare earth permanent magnets can promote international configuration.

Tags: China Magnet