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U.S. DEPARTMENT OF THE INTERIOR

U.S. GEOLOGICAL SURVEY

Trends in Tungsten, Molybdenum, and Cobalt Production and Trade in China

by

Pui-Kwan Tse

U.S. Geological Survey Reston, Virgina

Open-File Report 03-63

This report is preliminary and has not been reviewed for conformity with U.S. Geological Survey editorial standards (or with the North American Stratigraphic Code). Any use of trade, product, or firm names is for descriptive purposes only and does not imply endorsement by the U.S. the U.S. Government. The views expressed are those of the author, and are not necessarily those of the U.S. Government.

Trends in Metal Production and Trade in China

Pui-Kwan TseInternational Minerals Section

Minerals Information TeamU.S. Geological Survey

Reston, Virginia

At

Refractory Metals Association Meeting Washington, D.C. February 19, 2003

Share of Chinese Metal Production in the World

Commodity Percentage Rank

Aluminum 17 1Antimony 89 1Copper 10 3Gold 7.2 4Lead 18 2Magnesium 41 1Molybdenum 22 3Rare Earths 85 1Silver 9.6 4Tin 32 1Tungsten 83 1Zinc 22 1

3

Tungsten

Wolframite deposits

Scheelite deposits

> Production and Consumption

+ Trade

> Government Policies

Major Tungsten Deposits in China

Location of Major Tungsten Deposits

Sb, Mo, W, and Sn Production in China, 1990-2005

160

140

120

100

80

60

40

20

<»

I«

« tt3 O

H

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003e 2005e

Year

Antimony Molybdenum Tungsten Tin

Chinese Exports of Tungsten Products, 1997-2001

16000

14000

12000

10000 -

o 8000H

6000

4000 -

2000 -

1997 1998 1999

Year

2000 2001

Concentrates WO3 A APT * Ferrotungsten Tungsten Powder O Tungsten Carbide

Sources of Tungsten Concentrates Imported by China, 2001

18%

33%

49%

Korea Malaysia D Russia

14%

16%

Destinations for Chinese WO3 Exports in 2001

10%

26%

Sweden Netherlands D Japan DUS Others

Companies which are allowed to trade tungsten and its products

China National Metals and Minerals Import and Export Co.

China National Nonferrous Import and Export Co.

China Rare Earth and Metal Group Co.

China National Chemical Import and Export Co.

Major Molybdenum Deposits in China

Nei Mongol <;- 'l <;-"\ ~ ^' \. ) ^Li'

T<&Z2z i\ v<< .. *

,~,V~^

Guangxi /"* Guangdong

Location of Major Molybdenum Deposits

Chinese Exports of Molybdenum Products, 1996-2001

50000

45000

40000

35000 -

30000

50o 25000H

20000

15000

10000

5000

1996 1997 1998 1999

Year

2000 2001

Ferromolybdenum Roasted molybdenum

Sources of Molybdenum Concentrates Imported by China, 2001

7%

12%

14°/e

11%

37%

19%

I Russia Chile D Mongolia D Canada BPeru D Other

Destinations for Chinese Roasted Molybdenum Exports in 2001

13%

6%

15%

38%

28%

I Netherlands Japan D Korea, Rep. Of D United Kingdom Others

Destinations for China's Ferromolybdenum Exports in 2001

13%

4%

59%

11%

I Netherlands United States D Japan D Korea, Rep. of Taiwan ED Others

9000

Cobalt Production and Demand in China, 1995-2005

<*> a o H

8000

7000

6000

5000

4000

3000

2000

1000

1995 2003e 2005e

Concentrate Metal Import Unwrought Demand

Sources of Cobalt Concentrates Imported by China, 2001

5°/c

11%

13%

27%

16%

16%

I Zaire South Africa D Cuba D Congo Morocco D Zambia Australia D US Others

13%

5%

Sources of Unwrought Cobalt Imported by China, 2001

5%

13%

39%

16%

I Zambia Congo D Australia D Japan Canada D South Africa Others

Management of Export Permits:

o Ministry of Foreign Trade and Economic Corp. (MOFTEC)

o Special Export Permit Office

o Local Export Trade Office

MOFTEC coordinates with provincial and local governments andassociations to issue permits.Associations which assigned to perform this function are:

China Iron and Steel Industry Association China Nonferrous Metals Industry Association

/9

Trade categories related to minerals and metals

/ Restricted export items Radioactive materials

/ State control antimony and its oxide, coal, ore and concentrates of tin, tungsten, and zinc, rare-earths, tin and its products, ammonium paratungstate, tungsten products, zinc and its alloys, petroleum and its products

/ Provincial and local governments some steel products

Import Tariff Rate (%)

Ore and Concentrates of Metals 0Tungstic acid 5.5Tungsten oxide 5.5Ammonium paratungstate 5.5Tungsten carbide 2Ferrotungsten 2Tungsten powder 6Tungsten bar, sheet, and plate 5Tungsten wire 9Other tungsten products 8Ammonium molybdate 5.5Molybdenum oxide 5.5Ferromolybdenum 2Molybdenum powder 6Molybdenum, unwrought 3Molybdenum bar, plate, and sheet 8Molybdenum wire 8Other molybdenum products 8Tantalum waste and scrap 6Tantalum bar and rod 6Other tantalum products 8 Cobalt mattes and other intermediate products 4Cobalt carbonate 5.5Other cobalt products 8

PRODUCTS SUBJECT TO EXPORT DUTY

NO

1

2

3

4

5

6

7

HSNO

03019210 L

05061000 0

05069010 P

05069090 B c

b

26070000 I

26080000 ;

26090000 r

8 261100009 26159000

10

i u12

13

14

15

1 l6

I l7

I 18

1 19

1 2°

21

1 22

I 23

I 24

25

26

27

1 28

26171010

28047010

28047090

28269000

29022000

41031010

72011000

DESCRIPTION OF PRODUCTS

ive eels fry Jissem and bones treated with acid |

owder and waste of bones jones and horn-cores, unworked, defatted, simply prepared (but not 1 ut to shape), treated with acid or degelatinized, excl. Ossein and

tones treated with acid |

jead ores & concentrates

One ores & concentrates ]

Pin ores & concentrates

[\mgsten ores & concentrates

Niobium, tantalum & vanadium ores & concentrates

Crude antimony

Yellow phosphorus (white phosphorus)

Phosphorus, nes

Fluorosilicates and fluoroaluminates and complex fluorine salts, nes

Benzene

Slabs of goats, fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment-dressed or further prepared, whether or not dehaired or split

Non-alloy pig iron containing by weigh<0.5% of phosphorus in pigs, blocks or other primary forms

72012000 INon-alloy pig iron containing by weight >0.5% of phosphorus in

[pigs, blocks or other primary forms

72015000

72021100

72021900

72022100

72022900

72023000

72024100

72024900

-72041000

72042 I OC

7204290C

1 29 7204300(

Alloy pig iron and spiegeleisen, in pigs, blocks or other primary forms

Ferro-manganese, containing by weight more than 2% of carbon

Ferro-manganese, nes

Ferro-silicon, containing by weight more than 55% of silicon

Ferro-silicon, nes

Ferro-silico-manganese

Ferro-chromium containing by weight more than 4% of carbon

Ferro-chromium, nes

Waste & scrap, of cast iron

Waste & scrap, of stainless steel

) Waste & scrap of alloy steel, other than stainless steel

1 Waste & scrap, of tinned iron or steel

EXPORT 1

DUTY RATEI

(%)

20.0 1

40.0 1

40.0 I

40.0 J

30.0 1

30.0 1

50.0 I

20.030.0

20.0

20.0

20.0 1

30.0

40.0 I

20.0

20.0 j

20.0 1

20.0 1

20.0 1

20.0

25.0 1

25.0 I

20.0 I

40.0 1

40.0

40.0

40.0 J

40.0 1

1 40.0 1

NO

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

1 55

56

pr1 58

HSNO

72044100 F

V

b

72044900

72045000

74020000

74031100

74031200

74031300

74031900

74032100

74032200

74032300

7403290074040000

74071000

74072100

74072200

74072900

74081100

74081900

74082100

74082200

74082900

74091100

74091900

74092100

74092900

74093100

74093900

74094000

DESCRIPTION OF PRODUCTS

errous waste & scrap, nes, from turnings, shavings, chips, milling /aste, sawdust, filings, trimmings and stampings, whether or not in

undies

!errous waste & scrap of iron or steel, nestemelting scrap ingots of iron or steelCopper unrefined; copper anodes for electrolytic refining

}athodes & sections of cathodes, of refined copper, unwroughtWire bars, of refined copper, unwrought

Billets, of refined copper, unwrought

termed copper, unwrought, nes

Copper-zinc base alloys (brass), unwrought

Copper -tin base alloys (bronze), unwrought

Copper - nickel base alloys (cupronickel) or copper-nickel-zinc base alloys (silver), unwrought

Copper alloys, unwrought (other than master alloys of heading 74.05)

Waste & scrap, of copper or copper alloys

Jars, rods & profiles of refined copper

Bars, rods & profiles, of copper-zinc base alloys

3ars, rods & profiles, of copper - nickel base alloys or copper-nickel-zinc base alloys

Bars, rods & profiles, of copper alloy nes

Wire of refined copper, of which the maximum cross-sectional dimension >6mm

Wire of refined copper, of which the maximum cross-sectional dimension ^=6mm

Wire of copper-zinc base alloys

Wire of copper - nickel base alloys or copper-nickel-zinc base alloy

Wire, of copper alloy nes

Plate, sheet & strip, thickness >0.15mm, of refined copper, in coil

Plate, sheet & strip, thickness >0.15mm, of refined copper, not in coil

Mate, sheet & strip, thickness >0.15mm, of copper-zinc base alloys,

in coil

Mate, sheet & strip, thickness >0.15mm, of copper-zinc base alloys,

not in coil

Plate, sheet & strip, thickness >0.15mm, of copper-tin base alloys, in coil

Plate, sheet & strip, thickness >0.l5mm, of copper-tin base alloys,

not in coil

Plate, sheet & strip, thickness >0.15mm, of copper - nickel base

alloys or copper-nickel-zinc base alloy

EXPORT DUTY RATE

(%)

40.0

40.0

40.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.030.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

NO

59

60

61

62

63

64

65

66

67

68

P70

71

72

73

I 74

75

76

77

7.8

HSNO

74099000 PI

75021000 U

75022000 I

75089010 E

76011000 I

I

DESCRIPTION OF PRODUCTS I

ate, sheet & strip, thickness >0.15mm, of copper alloy nes

nwrought nickel, not alloyed

Inwrought nickel alloys

Electroplating anodes of nickel

Inwrought aluminium, not alloyed

76012000 |Unwrought aluminium alloys

76020000 | Aluminium waste & scrap

76041000 JBars, rods & profiles of aluminium, not alloyed

76042100

76042900

76051100

76051900

76052100

76052900

76061120

76061190

76061220

76061230

76061240

76069 iOC

Hollow profiles of aluminium allays

Bars, rods & profiles (excl. hollow profiles), of aluminium alloys

Wire of aluminium ,not alloyed, with the maximum cross-sectional dimension >7mm

Wire of aluminium, not alloyed, with the maximum cross-sectional dimension =^7mm

Wire of aluminium alloys, with the maximum cross sectional

dimension >7mm

Wire of aluminium alloys, with the maximum cross sectional dimension ^7mm

Plates & sheets & strip, rectangular (incl. square), of aluminium, not alloyed, 0.30mm ^ thickness ^0.36mm

Plates & sheets & strip, rectangular (incl. square), of aluminium, not alloyed, 0.30mm > thickness >0.2mm

Plates & sheets & strip, rectangular (incl. square), of aluminium alloys, 0.2mm<thickness <0.28mmPlates & sheets & strip, rectangular (incl. square), of aluminium alloys, 0.28mm ^ thickness ^0.35mm

Plates & sheets & strip, rectangular (incl. square), of aluminium alloys, 0.35mm<thickness

) Plates & sheets & strip, of aluminium, not alloyed, thickness

>0.2mm, nes

EXPORT

DUTY RATE

(%)

30.0

40.0

40.0

40.0

30.0

30.0

30.0

20.0

20.0

20.0

20.0

20.0

20.0

20.0

20.0

20.0

20.0

20.0

20.0

20.0

79

80

81

82

83

84

76069200 [Plates & sheets & strip, of aluminium alloys, thickness >0.2mm, nes

79011100

79011200

79012000

81100020

81100030- * -

Unwrought zinc, not alloyed, containing .by weight ->99.99% of zinc

Unwrought zinc, not alloyed, containing by weight<99.99% of zinc

Unwrought zinc alloys

Antimony unwrought

Antimony waste and scrap; Antimony powders

20.0 I

20.0

20.0

20.0

20.0

20.0

Chinese Export Quotas, 2003

Antimony and productsMagnesiaRare earthsSilverTin and productsTungsten and productsZinc and products

67,0001 (Metal) 1,300,0001 40,0001 (REO) 22001 (Metal) 65,0001 (Metal) 16,3001 (Metal) 600,0001 (Metal)

Tax Rebate

Foreign Investment

Encouraged

Exploration and Development:

Bauxite, Copper, Lead, Zinc joint venture only

Gold low ore grade and require advanced smelting technology joint venture only

Smelting and Manufacturing:

Alumina 300,000 tons or higher output capacity

Metal carbides

Antimony or tin alloys

Rare-earth application

Restricted

Exploration and Development:

Antimony, Barite, Diamond, Fluorite, Platinum-Group Metals, Tin, and Tungsten joint venture or co-operation

Sulfate process to produce titanium dioxide pigment

Rare-earth separation and smelting joint venture only

Prohibited

Rare-earth explorationRadioactive materials exploration and processing