The Second Round of Chinese Rare-Earth Export-Quota Allocations for 2014

by Gareth Hatch on July 19, 2014 · 1 comment

in China, News Analysis, Rare Earths

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Earlier this week the Chinese Ministry of Commerce (MOFCOM) announced the second round of allocations of rare-earth export quotas for 2014, to companies operating in China. This follows the initial announcement on the first allocation for 2014, which was made in December 2013.

A total of 15,501 t of export quotas was allocated in this second round, comprising 13,692 t of light rare-earth (LRE) products and 1,809 t of medium / heavy rare-earth (M / HRE) products. This brings the total allocations for 2014 to 30,611 t, which is similar to the totals for the past four years.

We can now take a look at the specific allocation numbers associated with this week's announcement, before reviewing allocations over the past few years. The companies below, highlighted in green are Chinese / non-Chinese joint-venture (JV) companies - the rest are Chinese-owned. The list is sorted from highest-to-lowest total allocation:

Second set of allocations of rare-earth export quotas, issued to
individual companies for 2014. Source: Chinese Ministry of Commerce
Exporting Company Allocation (tonnes)
LRE M/HRE Total
Grirem Advanced Materials Co. 1,028 195 1,223
China Nonferrous Import-Export Co. Jiangsu Branch 954 189 1,143
Baotou Solvay Rare Earth Co.* 959 98 1,057
Gansu Rare Earth New Materials Co. 964 56 1,020
Yixing Xinwei Leeshing Rare Earth Co. 683 136 819
Yiyang Hongyuan Rare Earth Co. 790 24 814
Leshan Shenghe Rare Earth Technology Co. 720 39 759
Ganzhou Qiandong Rare Earth Group Co. 615 118 733
China Minmetals Corporation** 604 114 718
Ganzhou Chenguang Rare Earth New Materials Co. 637 59 696
Xuzhou Jinshi Pengyuan Rare Earth Materials Co. 614 71 685
Liyang Solvay Rare Earth New Materials Co.* 498 181 679
Guangdong Rising Nonferrous Metals Group Co. 544 87 631
Jiangyin Jiahua Advanced Material Resources Co.*** 474 153 627
Zibo Jiahua Advanced Material Resources Co.*** 537 9 546
Jiangxi Rare Earth & Rare Metals Tungsten Group Co. 475 2 477
Sinosteel Corporation 435 32 467
Inner Mongolia Baotou Steel Rare Earth Hi-Tech Co.**** 377 11 388
Baotou Huamei Rare Earth Hi-Tech Co.**** 369 16 385
Shandong Pengyu Industrial Co. 279 30 309
Inner Mongolia Baotou Hefa Rare Earth Co.**** 300 8 308
Chalco Rare Earth (Jiangsu) Co. 211 84 295
Baotou Tianjiao Seimi Rare Earth Polishing Powder Co.**** 214 8 222
Baotou Santoku Battery Materials Co. 199 7 206
Huhhot Rongxin New Metal Smelting Co. 118 10 128
Guangdong Zhujiang Rare Earth Co. 64 35 99
Ganxian Hongjin Rare Earth Co.* 26 37 63
Xi'an Xijun New Materials Co. 4 0 4
Sub-Total: Chinese-Owned 10,693 1,343 12,036
Sub-Total: Chinese / Non-Chinese JVs 2,999 466 3,465
Total 13,692 1,809 15,501

* Part of Solvay, which was allocated a total of 1,736 t.
** Part of China Minmetals Group, which was allocated a total of 781 t.
*** Part of Molycorp, which was allocated a total of 1,173 t.
**** Part of Baogang Group, which was allocated a total of 1,303 t.

Here is a comparison of the quota allocations for the past six years:

Export quotas for the Chinese rare-earth industry (tonnes)
Source: Chinese Ministry of Commerce
Year Period Chinese-owned Chinese /
Non-Chinese JV
Sub-Total TOTAL
2009 H1 15,043 6,685 21,728 50,145
H2 18,257 10,160 28,417
2010 H1 16,304 5,978 22,282 30,258
H2 6,208 1,768 7,976
2011 H1 10,762 3,746 14,508 30,246
H2 12,221 3,517 15,738
2012 H1 16,066 5,160 21,226 30,996
H2 6,340 3,430 9,770
2013 H1 11,136 4,363 15,499 30,999
H2 11,163 4,337 15,500
2014 H1 10,756 4,354 15,110 30,611
H2 12,036 3,465 15,501

In 2014, the proportion of M/HRE to total allocations was 11.8%. This compares to 11.7% for 2013 and 12.5% for 2012, the first year that the quotas were split in this way.

There is once again no reflection in the quota allocations, or in the system as a whole, of the findings of the recent WTO case against China concerning export quotas and tariffs. The WTO ruled that the export-control system for rare earths (and other metals) is at odds with the trade rules of the WTO. The case in the latter stages of the appeals process.

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1 manamohan purandhar July 19, 2014 at 11:42 am

Dear Sir,
would it be possible to have figures of Rare earth products from Japan

regards

M.Purandhar

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