Hongpo Shen

About Hongpo Shen

Hongpo Shen is a Chinese freelance writer, professional blogger focusing on China's rare earth market, and previously held 15 years of experience in the local government of Shanghai, China. whose degrees include International Economics & Trade and Political Science. He has been an editor for InvestorIntel since May 2012.

New rumored 35% heavy rare earth tax in China, first since market ignited in 2011

Table 2 For the first time since 2011, China is considering a 35% resource tax on the heavy rare earths and a 22% tax on light rare earths. The government is considering a proposal to levy a 35% new resource tax on the ion-absorbed-type middle and heavy rare earths in the southern areas and to a 22% new resource tax on the light rare earths in the northern areas, according to the Beijing-based Economic Information Daily reported on November 20th, citing an unnamed authoritative source. What makes this interesting is that The resource tax would be based on sales value instead of volumes.…

China’s 2014 exports of rare earth permanent magnet expects to reach a new high

2014-11-14-Hongo-2 According to data from the General Administration of Customs, China's exports of rare earth permanent magnet increased by 22.9% year-on-year to 21,543.83 tons, with the total valued of US$ 1229.51 million or the average price was at US$57.1 per kg in the first nine months of 2014. Of which the volume of rare earth magnets was at 16,225.80 tons, NdFeB magnetic powder was at 4067.98 tons, other NdFeB alloys was at 284.53 tons and NdFeB magnet film was at 965.52 tons. The figures clearly shows the country's exports will reach a new high level this year, as compared to last…

Chinese insiders “still bullish” on rare earths

China's Ministry of Commerce (MOFCOM) released the 2015 total amount of export quotas for a number of agricultural and industrial products in an October 28 announcement. According to the announcement, next year's export quotas for industrial metal products includes 17,000 tons of tin and tin products (amount of metal); 59,400 tons of antimony and antimony products; 231 tons of indium (amount of metal); 5,387 tons of silver (amount of metal); 1.673 million tons of magnesia; 0.75 million tons of pulvistalci (lump); 6,200 tons of licorice and its products and 1 million tons of rock phosphate. Moreover, on November 3th, the…

China’s consolidation campaign to fight illegal rare earth exports

Ultra-low price, overcapacity and an output quota restriction have forced more of the rare earths producers in China to suspend production these days, as the eight ministries including Ministry of Industry and Information Technology (MIIT) and Ministry of Public Security (MPS) launched a new special campaign to fight illegal rare earth mining, production, circulation and export from October 10, 2014 to March 31, 2015. China's policymakers have racked their brains to find ways to crack down illegal rare earths in recent years. The regulators have labeled troubles in China’s so-called illegal rare earth sector the biggest potential threat to that…

Chinese authority launches new special campaign to fight illegal rare earths

Chinese top authority has vowed to severely punish malpractice in the mining, production and circulation of rare earths, amid fears of the country’s rare earth exports to lose control after implementation of World Trade Organization ruling in the next year. On October 11th, China’s Ministry of Industry and Information Technology (MIIT) released on its website a statement titled “Letter of the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Land and Resources, the Ministry of Environmental Protection, the General Administration of Customs, the State Administration of Taxation, the State Administration for Industry and Commerce…

The billion Yuan formation of the Guangdong Rare Earth Industry Group

RMB With a total investment of RMB 1 billion Yuan, the formation of the Guangdong Rare Earth Industry Group has been completed by Guangdong Rising Assets Management (GRAM), a major State-owned mining company in Guangdong province. In a September 30th posting on its site, GRAM said that the Guangdong Rare Earth Industry Group, as one of the Chinese six state-level and large-scale rare earths conglomerates, plans to lead the consolidation of the rare earth sector in Guangdong. “We have reached an agreement with the China Nonferrous Metal Industry's Foreign Engineering and Construction (NFC), to take a stake in NFC Southern Rare…

Chinese 2014 output of natural flake graphite expected to decline further

With the decline in China's steel consumption, demand for graphite has been restricted over H1 2014. A recent China Mining Association (CMA) report showed that the country’s output of natural flake graphite dropped 15% year on year to 180,000 tons in the first half of this year. This marks Chinese 2014 output of natural flake graphite expect to decline further due to a slower economic growth, especially as the refractories market is still accounting for nearly 40% of China’s overall domestic consumption. China produced 540,000 tons of natural flake graphite with an annual production capacity of 1,200,000 tons in 2013,…

Chinese imported rare earth metal ores prices show an upward trend

Hongpo-H1Data As a result of Chinese government tightening its restriction on the mining of rare earth metal ores, some of Chinese rare earth producers are expected to increase imports. The increase of imports of rare earth metal ores from the rest of the world is driven by the large smelting and separation capacity of the Chinese and an increased demand for the ores in the domestic market. China is the world's biggest producer of rare earth metals, which not only imported 3,678.168 tons of REO, but also bought 1,393.94 tons of rare-earth metal ores from the world in 2013. China’s customs…

China’s property slump to remain a drag on the price of zinc

The sharp deceleration in China's economic growth in August has resulted in a zinc price tumbling down. Value-added industrial output grew by 6.9% in August year-over-year, down from the 9.0% level in July and is the weakest growth seen since December 2008 according to the National Bureau of Statistics. It is clear that in the foreseeable future that China's property market slump is unfortunately deepening and home prices will definitely drop further, which is threatening the country's overall economic growth thus creating a drag on the price of zinc as a result. China produced 486,255 tons of refined zinc in August…

Considerable increase in Chinese rare earth exports to Japan and the U.S.A. this year

China's rare earth exports grew 30.79% month-over-month in August, while the export volume of rare earths increased 554 tons to 2,353 tons with export value of US$ 31.74 million, said the country's General Administration of Customs on Monday. From January to August this year, China’s rare earth exports totaled 18,252 tons, accounting for nearly 60% of its full-year export quota of 31,000 tons, while the export value of rare earth ore, metals and mixtures dropped 7.9% year on year to US$283.852 million in the eight-month period. Some of the Chinese rare earth producers fully used their the first batch of export quota…