China, the biggest supplier of rare earths, will keep 2012 export quotas basically level with this year, as high prices and a slowing global economy sap demand.

According to Bloomberg News calculations based on first-round quota figures given by the Ministry of Commerce in a statement, the full year quota may be about 31,130 metric tonnes. The quota was 30,184 tonnes in 2011 and 30,258 tonnes in 2010.

China produces at least 90% of the world’s rare earths, used in Boeing Co helicopter blades and Toyota Motor Corp hybrid cars. The slowing global economy and high prices have curtailed demand from Japan, Europe and US prompting speculation the country may slash quotas for 2012. China has curbed output and exports since 2009, when quotas were set at 50,145 tons, to conserve resources and protect the environment.

Mr Wei Chishan a Shanghai based analyst at SMM Information & Technology Co a data provider said that “The quota has become pointless if export demand falls short of the limits. Rare-earth users are under great pressure to pass on surging costs, while the global slowdown has slashed demand.”

China, the world’s fastest growing major economy, exported only 14,750 tonnes of rare earths in the first 11 months of this year, or 49% of the full year limit, leaving a huge amount of export quota unutilized.

(Sourced from Bloomberg)