16 years of rare earth export quotas will be eliminated

On December 31, 2014, the Ministry of Commerce issued the “2015 Catalogue of Export License Management Goods”, which clearly stated that the export of rare earths will implement export license management, and only enterprises need to take export contracts to apply for export licenses. This also shows from the side that China's rare earth export quota has been canceled. At the same time, this is the first major change since the adjustment of China's rare metal export policy in 2010.

It is reported that the cancellation of the export tariff is actually forced to helpless. On August 7, 2014, the WTO Appellate Body ruled that the implementation of rare earth export management measures in China did not comply with the relevant WTO rules and China's commitments when it joined the WTO. Since then, rumors about export quotas or cancellations have continued to emerge.

Quota cancellation

Little impact on exports

"In the past, the old system, although constantly tinkering, has not been able to improve the two ills of Chinese rare earth enterprises without the right to speak and smuggle in the international market, but has caused international trade disputes. Therefore, it is better to let go of it without any effort. All of them are handed over to the market, and all parties will consider the interests driven in the future. Perhaps the invisible hand is more effective than the visible hand." Some analysts believe that.

It is reported that China's rare earth export quota system began in 1998. Since China cut the scale of rare earth exports in 2010, global rare earth inventories have been almost exhausted. China's rare earth consumption accounts for about 70% of the world's total, and supply accounts for 90% of the world. However, in the past three years, the export quotas for light rare earths have been largely idle.

Relevant data show that from 2011 to 2013, the amount of rare earth exports (not counting smuggling) accounted for 61.6%, 52%, and 73% of the quota. In 2014, the export quota was 90%, and about 10% was not used up.

Du Shuaibing, a rare earth analyst at Baichuan Information, told the "Securities Daily" reporter that in fact the current market demand is poor, even if the export quota is cancelled, it will not have much impact on the export of rare earth.

However, what worries the reporter is that since the export quota has been abolished, will it lead to a surge in the export of rare earths, resulting in a large loss of the country’s strategic resources.

In this regard, Du Shuaibing said: "Although the export quota has been abolished, the state still requires an export license, which means that the export unit is still limited. Although it does not limit the amount, it is actually controllable."

At the same time, the above analysts also told reporters: "Although the quota has been abolished, it is possible to regulate the production and export of rare earths by means of resource taxes and other means, and this can also reduce the occurrence of international trade disputes. At the same time, the state has stepped up its support. The Group has increased the concentration of resources. On the other hand, the launch of the six-month “Rare Earth Blackening” special campaign has also helped to stimulate the price of rare earths.”

In addition, although smuggling and overcapacity are the main problems faced by China's rare earth industry, from the perspective of enterprises, rare earth prices are the most important issue that restricts the development of the rare earth industry, and this has seriously affected the profits of enterprises.

Judging from the 2014 third quarter report of rare earth listed companies, the leading enterprise Baotou Steel has experienced a double decline in operating income and net profit. According to the data of the third quarterly report published by Baotou Steel Rare Earth, although the company's operating income and net profit both exceeded 100 million yuan, they all experienced a sharp decline year-on-year. Among them, operating income fell 43.85%, and net profit fell 63.58%.

Another rare earth enterprise, Minmetals Rare Earth, although it achieved operating income of 297 million yuan and net profit of 38.327 million yuan in the third quarter of 2014, but from the company's performance in the first three quarters of last year, net profit fell sharply by 107.79%. .

Rare earth resource tax adjustment

Will it replace the tariff?

At present, there is still debate about the impact of the elimination of rare earth quotas on prices. Some insiders believe that the cancellation of rare earth export quotas can effectively raise prices, but some analysts believe that in the short term, after the elimination of rare earth export quotas, prices face A small decline, long-term price trend is still determined by supply and demand, if there is a large amount of dumping phenomenon of domestic enterprises, the price pressure of rare earth is still relatively large.

People from the Rare Earth Industry Association pointed out that at the national level, the elimination of rare earth export quotas will make it more difficult for China to protect rare earth resources and protect the ecological environment, but it can also stimulate China to introduce more powerful measures in this regard and increase efforts. Protected. From the enterprise level, the abolition of rare earth export quotas can promote the development of marketization.

In addition to the price, the tariff and resource tax of rare earths is also the focus of the industry.

At present, China's export tariff on light rare earth products is set at 15%, and the tariff on heavy rare earth exports is set at 25%. Since April 1, 2011, the State Council has uniformly adjusted the tax standards for rare earth ore mineral resources. Light rare earths include fluorocarbon strontium ore and monazite ore at 60 yuan/ton; medium and heavy rare earths include xenotime or ionic rare earth ore. It is 30 yuan / ton.

According to the reporter's understanding, there have been market rumors that the relevant departments are planning to convert the rare earth resource tax collection method from the original “quantitative levy” to “ad valorem levy”. According to the plan that has not yet been finalized, the northern light rare earth resource tax rate will be levied at 22%, and the southern ion mine will be levied at 35%. For the whole country, the rare earth resource tax burden will be greatly increased.

However, some insiders believe that although the replacement of tariffs by rare earth resource tax is the general direction, it is difficult to completely control the taxation of rare earth mining. Therefore, the replacement of domestic resource tax tariffs will be a gradual process.

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