China Cuts Back Exports of Special Metals Tin, Tungsten, Antimony, Molybdenum in 2012

China has announced it would cut down its export quotas of special metals in 2012, which could push world prices higher.

Reports from Beijing's China Daily News and the Rare Earths industry journal said China will cut export quotas for tin, tungsten, antimony and molybdenum in 2012.

Export quotas of tungsten will drop to 15,400 from 15,7000 tons; tin exports will be slashed to 18,000 tons from 18,900. Antimony's 2011 quota of 60,300 will be reduced to 59,400 tons; molybdenum will be squeezed to 25,000 tons from 25,500; and indium 231 tons from 233 tons.

Raremetalblogs editor Robin Bromby pointed out that the metals industry has found new uses for tungsten. Now widely used for wedding rings, tungsten has been chosen over gold because it is cheaper and rarely gets scratches.

"You can buy them for as little as $US179, although one with three diamonds will set you back $US745. And, because tungsten is one of the hardest metals around (which is why it is vital for machine tools), these rings don't get scratches. Now one of the big U.S. online retailers, Titanium-jewellery.com, has launched line of cobalt rings," Bromby noted.

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British investment Web site London South East, reports that Frankfurt-based metals trader Tradium has set a 50,000 euro minimum for private investors to buy physical metal.

Among the metals private investors are now stocking up on are indium, germanium, gallium and hafnium - so much so that Tradium has opened a new storage facility in the Rhine-Main area.

"At current prices, 50,000 euros worth of indium, for example, would amount to over 100 kg of metal," London South East says. There is also growing interest among European investors in rare earths as they recognise the importance of these elements in magnet production.

There have been separate reports that indium prices have overtaken those of gallium. They are sitting at between $US620 and 690 per kilogram and $US610-670/kg respectively. (contact the reporter and editor: c.jared@IBTimes.com.au)

Read more: Doubling Demand for Rare Earths Seen Pushing Prices Up in 2012

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