China Says Rare-Earth Export Quota For 2012 Will Be "Basically Level" With 2011.
Bloomberg News (12/28) reports that China, the largest "supplier of rare earths, will keep 2012 export quotas 'basically level' with this year," according to the Ministry of Commerce, while "high prices and a slowing global economy sap demand." The quota for 2012 might reach "about 31,130 metric tons," up slightly from "30,184 tons in 2011 and 30,258 tons in 2010." China currently makes "at least 90 percent of the world's rare earths, used in Boeing Co. (BA) helicopter blades and Toyota Motor Corp. hybrid cars."
According to the Wall Street Journal (12/28, C3, Yap, Subscription Publication), China also said there would be an initial 27 percent cut to its 2012 rare-earth exports, but that the full 2012 quota limit would probably remain about the same as 2011 limits. However, the Journal reports China has been decreasing their rare-earth export quotas recently to increase their pricing controls, creating higher prices since 2009.
