Updated Rare Earths Prices
- VAT: By Chinese law, VAT is included in China's domestic prices. While for most products China exports VAT is being refunded upon export, there is zero VAT refund upon export of rare earths products, so that the foreign buyer pays China domestic VAT with no possibility to offset it.
- Changes: The China VAT rate was reduced from 17% to 16% in May 2018 and further reduced from 16% to 13% in March 2019.
- Resource tax:From October 2019 the China resource tax applicable to rare earths was reduced, impacting different rare earths products from different regions to different degrees.
- Basket prices: While it is reasonable to assume, that junior miners who start producing rare earths products and sell them to US, EU or Japan markets will achieve China export price levels, this is not the case when junior miners sell rare earths to China. Rare earths imports to China will be dutiable (exempted 2018, 2019, 2020 and 2021, generally taxed between 3-5%) and will have to pay VAT upon import, currently 13%. As long as a junior miner plans to sell rare earths to China, his basket prices will have to be adjusted for China VAT and China import duty.
- Prices are per kilogram (kg).
- Method: Shanghai published RMB prices converted to US$ based on same day China exchange rate.
- This is not an offer. Owing to the particularities of the rare earths market, published prices and actual offers for physical material may differ.
- Errors & Omissions Excluded.
- You use this free information at your own risk.