Updated Rare Earths Prices
09 06 22 12:04
- 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.
- 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 2021 and 2022, generally taxed between 3-5%) and will have to pay VAT upon import, currently 13%. If 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. Junior rare earth miners never apply a recovery rate to their basket prices, suggesting that each and every element will be 100% recovered. This physically completly impossible. In average, for this reason alone, junior rare earth miner basket prices are generally ~40% too high.
- Delivery: All prices are on delivery base Ex-Works China.
- 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.