Tungsten Price Unlikely to Collapse Following China’s Export Tax Removal, Says Wolf Minerals

Mineweb reported that the expected collapse of the tungsten price following China’s decision to remove export taxes on the metal are likely to be dashed after country officials found another way to limit shipments, according to Wolf Minerals (ASX:WLF) managing director Russell Clark.

As quoted in the market news:

A World Trade Organization ruling last year said China’s export duties imposed on rare earths, tungsten and molybdenum, were incompatible with the country’s WTO obligations. China has abolished those levies effective May 1.

But China has also amended the resource tax so that, again from May 1, it applies to sales value instead of the amounts produced. The resource tax on tungsten is set at 6.5 percent.

“The thinking was that China would find another way to maintain the status quo and it has,” Clark said in a telephone interview. “There isn’t going to really be any impact on tungsten prices from China abolishing export taxes.”

China is estimated to supply some 80 percent of global consumption, currently seen at about 100,000 tonnes a year.

Click here to read the full Mineweb report.