China Rare Earth Export Increase 930% in First Half of 2011

From January to June this year, the export of China’s rare earth products amounts to $ 1.54 billion, up by 930% over the same period of last year. However, no significant increase had shown in the export volumn.

In the first half of this year, the skyrocketing price of rare earth had brought benefits to rare earth exporters in China.

On August 4, 2011, China Nonferrous Metals Industry Association (hereinafter referred to as CNIA) held a press conference one the performance of China Nonferrous Metals Industry in first half of 2011, economic run.  The data from CNIA show that from January to June, 2011, the export of China’s rare earth products amounts to $ 1.54 billion, up by 930% over the same period of last year. However, no significant increase had shown in the total amount of export.

According to the experts in the rare earth industry, compared with last year this year’s rare earth’s export volume experienced no significant increase, “The reason behind the substantial increase in exports is the soaring rare-earth price.”

According to a previous report on “National Business Daily”, since the beginning of 2011, the price of rare earth products rose more than 200%, some even grew by 6 ~10 folds. However, recently domestic rare earth prices have fallen sharply by even more than 15%.

Jia Mingxing, Vice President and Secretary General of CNIA said on the press conference that the rising rare earth price is a swinging back and the downstream companies should adapt to this change. “In recent months, the adjustment made on the price of rare earth showed that there has really been speculation and hoarding going on in the market, but they are not the mainstream phenomenon in the market.”

Besides, CNIA’s statistics also showed that from January to June, China’s non-ferrous metal export was $ 21.32 billion, up by 61.7% over the same period of last year. And the increase was 50.3 percentage points higher than the average during the “Eleventh Five-Year” period

Jia Mingxing also said that in the second half of 2011, domestic market demand for non-ferrous metal remained steady and the production and operation of the non-ferrous metal industry will continue to run smoothly. “it is expected that increase annual production of 10 kinds of non-ferrous metals will maintain a 10% growth, of which the increase in production of electrolytic aluminum will be within 10%, the positive trend in non-ferrous metal industry will not change.”

It is reported that in the first half this year, the total output of 10 kinds of nonferrous metal was 16.553 million tons, an increase of 7.3%. Among them, output of smelting products experienced a slow down, while mineral and deep processed products enjoyed a much more obvious increase. Besides, profits tend to flow to companies with abundant resource and energy, and fixed assets investment has shown a clear trend of moving to the west of the country.

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