China issued its yearly tariff schedules for 2013 on December 10, 2012, which will take effect on January 1, 2013. In the 2013 export tariff schedule, China repealed the export duties on certain coke, fluorspar, magnesium, manganese, silicon metal, and zinc products. The export duties on these products were challenged by the United States, Mexico, and the European Union under the WTO dispute settlement system and were found inconsistent with WTO rules. China agreed to implement the WTO rules by the end of this year.
The export duties for manganese metal (except for manganese briquettes of which durty has been zero) and silicon metal are to be abolished, as has been rumored, effective January 1, 2013. The duties for manganese ore, coke and magnesium metal also will be lifted.
The duties which are to be removed from next year are all "provisional" tariffs, in other words, the items of which export duties will become zero next year were originally all free of export duty, meaning the revision this time was basically to go back to the basics.
No new tax has been mentioned in the announcement such as the rumored "environmental tax "etc but it is still a big concern for the market whether another announcement about some kind of new taxes will follow or not.
There has been no change made so far about the export duties for any of the ferroalloys or molybdenum ore.
In addition, China lowered the import duties for 784 commodities for 2013 through a provisional import tariff schedule. These commodities include certain agriculture products, mineral products, chemical products, machinery, and mechanical appliances.
In 2012, the global magnesium demand volume reached 745,000 tons, increased by 7.5% over 2011, of which, the aluminium magnesium alloy’s demand for magnesium reached 280,000 tons with the year-on-year growth of 14%, and automobile die pressed casting demand for magnesium reached 210,000 tons with the growth of 10%.
China is the country with the most abundant magnesite resources. There are 27 proved magnesite deposits in China, and mainly distributed in Liaoning, Shandong, Xinjiang, Tibet and Gansu, of which, the reserves in Liaoning is the largest, accounting for about 85.6% all over China, and is world-famous by its large reserves and high quality.
In 2011, the national magnesite output has reached 18 million tons, and the output in Liaoning was about 16 million.
In 2011, the output of crude magnesium has reached 660,600 tons, increased by 11.04% over 2010; of which, the output in Shanxi reached 329,200 tons, accounting for 49.36% of the country’s total output, followed by Shaanxi and Ningxia, with the output of 253,900 tons and 37,800 tons.
In the future decade years, the annual growth rate of China magnesium industry will reach 7.5%, and it is estimated that the demand for magnesite will increase steadily. At the same time, Liaoning Provincial Government and Anshan Municipal Government build Haicheng “Magnesite new material industrial base with the output value of CNY 100 billion”. Haicheng Sanyan has formed the mining, firing, electric smelting and finished products production system which based on the high quality and abundant magnesite resources, and in the future, this company will finish a whole industry chain which combines mining, deep processing, gangue flotation and refractory production together. It is estimated that China’s magnesite output will reach 29.5 million tons in 2015.