Liu Yinan, vice-chairman of the China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters told China Daily that rare earths export volumes in 2013 will be similar to those of 2012.

The China Customs Statistics Information Center reported only 9,967 metric tons of rare earths were exported during the first nine months of this year, or just one-third of this year’s quota of 30,996 metric tons.

Liu told China Daily that export volumes declined 11.5% from last year and plunged in value by 61.5% to US$702 million. Exports this year are expected to hit a ten-year low of 12,000 metric tons. During the peak in 2003, China’s rare earth exports hit 70,000 metric tons. Liu attributed the decline to the global economic slowdown, which has weakened demand from major importers, including Japan and the United States.

Meanwhile, mining operations are starting in other nations, as China has enjoyed a virtual monopoly on the world’s production and marketing of rare earths. U.S. rare earths miner and producer, Molycorp, anticipates producing 40,000 metric tons annually beginning sometime next year. Australain miner Lynas Corp. expects to be mining 22,000 metric tons of rare earths annually late in 2013.

Japanese firms are using recycling technology to avoid a rare earths crisis, such as Honda Motor Corporation’s plan to recycle rare earths from existing products rather than relying solely on Chinese REE imports.

An analyst at Baichuan Information told China Daily that price and demand for rare earths will be higher in 2013 as the global economy improves. However, Du Shuaibing cautioned, REE supply will still exceed demand.

Source: Mineweb