Exports of rare earth metals from China reached 28,000 tons in 2014

China exported 28,000 tonnes of rare earth metals in 2014, up 27.3 percent year on year, but export prices fell. The average export price for rare earth products was 83,000 yuan ($ 13,491) per ton, down 47.8 percent from 2013.

China is responsible for more than 90 percent of the world's rare earth products, placing severe restrictions on the supply of a group of elements used in sectors such as defense and renewable energy. The country is looking for new ways to strengthen its pricing power over rare earths after the World Trade Organization (WTO) refused last year to reverse a decision to recognize the country's branded export duties and quotas as discriminatory. At the end of last year, the Chinese Ministry of Commerce decided to abolish quotas for rare earth metals, as well as tungsten and molybdenum.

Japan was the largest buyer of rare earths, accounting for 42.9 percent of China's supply, or 12,000 tonnes in 2014, while the United States ranks second.

Improvements in US rare earths production activities outside of China are putting pressure on exports from the country. However, Chinese firms are exporting material more aggressively after the central government raised quotas, which, coupled with sluggish demand, have had a negative impact on prices.

Under these conditions, China is calling on the country's six largest rare earth companies to consolidate and restructure. This will help regulate the sector and eradicate illegal manufacturing and smuggling. Consolidation is expected to improve market order and push metal prices higher in the future.