China Plans to Maintain Export Limits on Some Metals to Conserve Resources

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Jun 2010

China, facing a trade probe by the World Trade Organization on raw material export constraints, will continue to curb exports and production of some metals to conserve resources and limit pollution, an official said "Tungsten, molybdenum and vanadium are mineral resources that give China an advantage and are non-renewable," Zhang Fengkui, division head of raw materials at the Ministry of Industry and Information Technology, said in Beijing today.
China's curbs on exports of some raw materials have triggered complaints by the European Union, U.S. and Mexico to the World Trade Organization, which is probing whether those policies gave Chinese manufacturers an unfair edge. The nation in March said it stopped accepting applications for new mines to produce tungsten and antimony until June 2011.
The Chinese government cut 2010 export quota on tungsten, used in high-temperature applications such as light bulbs and rocket engines, to 14,300 tons, from 14,600 tons the previous year. The quota on molybdenum, used to toughen steel, was unchanged at 25,500 tons, according to the trade ministry.
These minor metals "play an important role in the national economy," Zhang said at a conference.
At the current pace of exploration and production, China's resources of tungsten will last 20 years and molybdenum 100 years, Zhang said. The Chinese government wants to cap this year's output of tungsten metal at 80,000 tons, antimony at 100,000 tons and that of rare earth at 89,200 tons, according to its March statement.
Trade Complaints
"WTO rules allow nations to protect their own non- renewable resources, but require policies should apply not only to exports, but also local production," Wang Qinhua, deputy secretary general of the China Nonferrous Metals Industry Association, said today at the same conference. China is studying policies to curb domestic mining and processing of minor metals to address WTO requirements, she said.
WTO judges are probing complaints whether Chinese restrictions on nine raw materials including coke and zinc are discriminatory. China says the taxes are aimed at easing overproduction and emissions of carbon and sulfur gases.
China also restricts exports of rare earths, used to make parts in cell phones and radars, and the U.S. Trade Representative may be studying the limits for a trade case, industry officials said this month.

Source: Bloomberg