Is Japan Ready to Challenge China on Rare Earths?
China's clampdown on its rare earths production has alarmed trading partners led by Japan, which intends to take up the issue at the Asia-Pacific Economic Cooperation Forum in Hawaii.
Tokyo has raised vital trading concerns regarding China's restricted sale of the precious rare earths to the World Trade Organization in Geneva, although it has deferred lodging formal complaints before the trading body.
According to sources at the WTO, Japan may have to wait to see how China will respond to the recent decision finding it guilty of charges lodged by the United States, the European Union and Mexico on its trade of raw materials such as bauxite and silicon carbide.
Industry sources said Tokyo might be alone in undertaking a complaint against China on rare earths because the European Union and the U.S. have other concerns of their own. The EU is consumed by its debt crisis, while the U.S. is considering putting up its own rare earths stockpile.
China has stood firm on its policy on rare earths and domestic rare earths suppliers have taken the heat as the state wants to take control of all the production.
Japan questioned China's policy to cut down its rare earths exports by 40 percent from a year earlier to 8,000 tons in 2010.
A report from Mainichi Japan said China's rare earth exports to Japan temporarily fell last fall amid the diplomatic spat over ship collisions near the disputed Senkaku Islands in the East China Sea.
China's Rare Earths Policy
Attempts to cement the Chinese government's dominance in exporting rare elements used in electronic gadgets, seemed to backfire as local industry has dumped its inventory in the market, causing prices to skid.
The price rare earths minerals has tumbled from RMB 300,00 to 100,000 ($15,740) per ton in recent days in spite the halted production of China's two biggest domestic rare-earth producers, including Inner Mongolia Baotou Steel Rare Earth Hi-Tech Corp.
Reports have circulated that China will begin to tighten its reins over the coveted rare earth industry by issuing special invoices to local producers and smelters that have passed environmental standards.
Beginning this month, only those rare earths producers and smelters with state-issued special invoices can manufacture, make inland transfers, and export.
According to the Ministry of Commerce, the new system, which started early this month, only qualified players will receive the special invoice, and provide it to downstream buyers. ( Contact the reporter and editor at c.jared@ibtimes.com.au)
Tokyo has raised vital trading concerns regarding China's restricted sale of the precious rare earths to the World Trade Organization in Geneva, although it has deferred lodging formal complaints before the trading body.
According to sources at the WTO, Japan may have to wait to see how China will respond to the recent decision finding it guilty of charges lodged by the United States, the European Union and Mexico on its trade of raw materials such as bauxite and silicon carbide.
Industry sources said Tokyo might be alone in undertaking a complaint against China on rare earths because the European Union and the U.S. have other concerns of their own. The EU is consumed by its debt crisis, while the U.S. is considering putting up its own rare earths stockpile.
China has stood firm on its policy on rare earths and domestic rare earths suppliers have taken the heat as the state wants to take control of all the production.
Japan questioned China's policy to cut down its rare earths exports by 40 percent from a year earlier to 8,000 tons in 2010.
A report from Mainichi Japan said China's rare earth exports to Japan temporarily fell last fall amid the diplomatic spat over ship collisions near the disputed Senkaku Islands in the East China Sea.
China's Rare Earths Policy
Attempts to cement the Chinese government's dominance in exporting rare elements used in electronic gadgets, seemed to backfire as local industry has dumped its inventory in the market, causing prices to skid.
The price rare earths minerals has tumbled from RMB 300,00 to 100,000 ($15,740) per ton in recent days in spite the halted production of China's two biggest domestic rare-earth producers, including Inner Mongolia Baotou Steel Rare Earth Hi-Tech Corp.
Reports have circulated that China will begin to tighten its reins over the coveted rare earth industry by issuing special invoices to local producers and smelters that have passed environmental standards.
Beginning this month, only those rare earths producers and smelters with state-issued special invoices can manufacture, make inland transfers, and export.
According to the Ministry of Commerce, the new system, which started early this month, only qualified players will receive the special invoice, and provide it to downstream buyers. ( Contact the reporter and editor at c.jared@ibtimes.com.au)
Comments
Post a Comment