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|Quota System For Moly Exports Enforced By Chinese Government Is Not Effective At Present|
|= Exported 16,338 Tons In Jan. - Nov. 2007|
According to the customs-statistics released in China, China exported 16,338 tons in total of molybdenum products in January - November of 2007, consisting of 8,342 tons in material of ferro-molybdenum and 7,996 tons in material of molybdenum oxide. The monthly quantities ( on material base ) of molybdenum products exported from China in January - November of 2007 were as per the table attached hereto.|
The Central Government of China has launched from July of 2007 to enforce the regulations for exports of Chinese molybdenum products and the total quantity ( on material base ) of molybdenum products allocated to exports in the second half ( July - December ) of 2007 came to 16,000 tons, consisting of 12,000 tons for metallurgical use ( ferro-molybdenum and molybdenum oxide ) and 4,000 tons of chemical use.
It was marked how extent do the regulations for exports of molybdenum products enforced by Chinese Government effect actually but the apparent quantity of molybdenum products exported from China in July - November of 2007 has already exceeded substantially that as allocated by the Government. The reason has been pointed out by the matters, which molybdenum prices have risen steeply in the international market and Chinese plants are endeavoring to increase their molybdenum production on a basic tone. According to an estimation by a leading molybdenum producer in the western world, China supposedly produced 105.0 million lbs. of molybdenum in 2007, having increased by 18% compared with that ( 88.9 million lbs. ) in 2006.
There was a strong view in the market that, since Chinese suppliers were in a hurry to export more molybdenum products in the first half of 2007, the exports in the second half should decrease. It was known that the exports of Chinese molybdenum products in the second half of 2007 certainly decreased but still exceeded considerably the quantity allocated by the Government as mentioned above. In order to penetrate the regulations for exports of molybdenum products enforced by the Central Government of China into the molybdenum industry of China, the system to allocate exportable quantity to each of the approved companies has been adopted but the total quantity of molybdenum products, which China actually exported in the second half of 2007, has come to be inevitable to be far larger than that allocated by the Government.
China exported 42,111 tons in material of molybdenum products, consisting of ferro-molybdenum and molybdenum oxide, in January - November of 2007, which had a decrease of 5% compared with that ( 44,267 tons ) in the same period of 2006. However, a possibility to decrease Chinese exports by 10 - 15% from that in 2006 as initially anticipated is thought to be thin. The reason, why the regulations for exports of Chinese molybdenum products are actually not effective, is not known but it seems that the penalty to be fined when a contravention to the regulations is found has been not clarified.
At all events, reflecting the regulations for exports of molybdenum products enforced by the Central Government of China, the international prices of molybdenum products have certainly risen by more than 10% and the regulations for exports of molybdenum products by Chinese Government are thought to have indirectly contributed to these rises of molybdenum prices.
For a reference, since 2 - 3 years ago, tungsten produced in China has been regulated by the Government as the objective material for exports but the allocation has been based on tungsten content and, therefore, whether the quota has been exceeded by its actual exports or not fulfilled is not clear at present.
|last modified : Tue 22 Jan, 2008 [10:30]|