Rare earth: China intends to operate the control screw

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The WTO ruling against China for the rare earths has repercussions. Two years ago, the European Union had, the U.S. and Japan complained, China dass auf Exportquoten Rare earth and some other raw materials has introduced. Thus, the access of other countries has been difficult to raw materials and China so have competitive advantages gained. The WTO has given the mourners law, China will lift its export tariffs probably.

WTO is likely to have nothing to complain about taxes

The so lost money could in any other way but again be flushed into the coffers of the State. Chinese media report, that a new tax will be levied on the rare earths. This is to be paid by the producers of the raw materials. The prices would be an overall increase, both domestic and foreign customers would be affected. The WTO should not be bothered by it. The tax would also not depend on the weight but according to the value of the raw materials. At the same time the environmental costs should be taken into account more. It is considered simultaneously, Issue environmental permits. Only those who are in possession of such a certificate, may operate export business. China wants to limit the over-exploitation of the environment.

According to unnamed sources currently employ various ministries in Beijing with the matter. It is believed, that the control in the second half 2014 could enter into force or will at least be announced. An official confirmation is however far from. The newspaper reports have however also not contradicted.

Sales and profits to plummet

Finally, the rare earth prices have fallen significantly. You can see that the annual numbers of different conveyor. In der Inneren Mongolei, in many producers of rare earths have their seat, were 2013 of these raw materials sales of 290 Generates millions of dollars, which was a decrease of 25 Percent compared to 2012. The gain has to be 5 Percent to around 30 Reduced millions of dollars.

A similar development can be seen at Inner Mongolia Baotou Steel Rare-Earth Hi-Tech (ISIN: CNE000000T18), the largest producer of rare earths in the country. Meanwhile, sales in the first quarter 2014 um fast 53 Percent 175 Slumped million dollars. The profit has increased by almost 72 Percent 11,2 Million Dollar verringert.

The authorities hope, that the conveyor to pass on the tax to consumers. This would mean rising prices. Sometimes they could be simultaneously increased even further, which could help the sponsors after the recent setbacks.

Smuggling is lucrative

High prices, however, would make smuggling more attractive. This means that China has to fight again. It is believed, that a large proportion of rare earths does not leave the country legally, Sondern in dunkle Canals versackt. New taxes would strengthen this illegal business branch further. If so the demand can be really better regulated, must be questioned.

Those: http://www.miningscout.de/blog/2014/05/22/seltene-erden-china-will-die-steuerschraube-bedienen/
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