China's Export Controls Spark Rare Earth Magnet Surge; Tianhe Magnetic Materials Hits Daily Limit

Highlights

• China's Ministry of Commerce imposed immediate export restrictions on seven critical rare earth elements, disrupting global supply chains.
• The rare earth permanent magnet sector saw significant investor sentiment surge, with Tianhe Magnetic Materials hitting limit-up trading thresholds.
• Medium-heavy rare earth materials like terbium oxide experienced price spikes, affecting key industries including electric vehicles, wind turbines, and advanced electronics.

Rare Earth Exchanges is closely monitoring market volatility and strategic shifts following China’s sweeping export control measures on key medium-heavy rare earth elements. On April 4, the Ministry of Commerce and the General Administration of Customs jointly announced immediate export restrictions on seven vital elements: samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—a move with global implications for high-performance magnet manufacturing and supply chains.

As reported in Shanghai Metals Market, (opens in a new tab)  investor sentiment supposedly surged in China’s rare earth sector. On April 8, the Rare Earth Permanent Magnet Concept Index jumped 2.47% by early afternoon, with Tianhe Magnetic Materials Co. hitting the limit-up threshold amid a spike in trading activity.

According to Chinese-originated news, the rally is further fueled by the rare earth conglomerate China Northern Rare Earth’s strong Q1 pre-earnings, reinforcing bullish expectations across the sector.

Among the most affected commodities are terbium oxide and other medium-heavy rare earths, which saw price spikes on tightening supply outlooks. These materials are essential for producing high-performance magnets used in electric vehicles, wind turbines, military systems, and advanced electronics—industries already grappling with supply chain instability.