Aluminum price soars as China cancels tax incentive on exports
The export tax rebate was also removed for copper and lowered for some refined oil, solar, battery and non-metallic mineral products.
China’s exports of rare earths in July rose 49% from a year earlier to 5,426 metric tons, customs data showed on Tuesday, supported by healthy demand from the new energy vehicle and wind power sectors.
The July volume, the highest since March 2020, is also higher than the 5,009 metric tons shipped abroad in June, and the number has risen for four months in a row, data from the General Administration of Customs showed.
“Some consumption areas, including new energy vehicles and the installed capacity of wind power, exhibited growth, generating relatively steady demand for rare earths,” said Yang Jiawen, an analyst with Shanghai Metals Market.
Rare earths are used in products from lasers and military equipment to magnets found in electric vehicles, wind turbines, and consumer electronics such as iPhones.
Also contributing to higher exports last month were concerns that China might soon limit exports of rare earths after it announced in early July it would restrict the exports of gallium and germanium, widely used in the semiconductor industry, starting in August, according to analysts.
Exports of the group of 17 rare earths minerals from the world’s largest producer during the first seven months of 2023 stood at 31,662 metric tons, up 6% on the year, according to customs data.
The higher exports came after China raised its first batch of quotas for mining output and smelting in 2023 by 19% and 18%, respectively, with the market waiting for the release of the second batch of quotas.
China accounted for 70% of the world’s mine production of rare earths in 2022, followed by the United States, Australia, Myanmar and Thailand, United States Geological Survey (USGS) data shows.
(By Amy Lv and Andrew Hayley; Editing by Edmund Klamann and Gerry Doyle)
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