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China to reduce rare earth export quota by 72% (12-07-10)

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China to reduce rare earth export quota by 72% (12-07-10)

China Knowledge — China, the world’s largest rare-earth producer, will cut export quotas by 72%

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in the second half of 2010, after the central government’s plan to

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integrate the rare earth price in the domestic market, the China Daily reported.

Pursuant to the new amendment, shipments of rare earth will be capped at 7,976 metric tons, down from 28,417 tons for the same period a year ago.

« The rare earths industry officials realized that, the rare earth industry didn’t receive proper profit returns after so many years continued export, » Liu Aisheng, director of the Chinese Society of Rare Earth, said in an interview.

Baotou Steel Rare-Earth Hi-Tech Co<600111>, the Inner Mongolia-based and also the biggest domestic rare earth producer, fell 1% to RMB 35.80 on the Shanghai exchange after receiving the news.

Baotou Steel is also one of the 32 local and foreign companies that are permitted to export rare earth in the second half.

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