China’s Rare Earth Exports Dip, Bolstered by Increase in Domestic Demand, Pricing

Hightlights

• China’s rare earth exports fell by 11.5% in August, due to rising domestic demand.
• Pricing dynamics encouraged domestic sales amidst tight supply.
• Export restrictions implemented by China affect supply and prices.

What’s behind reports that Chinese exports of rare earth minerals declined by 11.5% in August? Reuters was the first to report on the decline based apparently on an uptake in domestic demand, with unfolding pricing dynamics incentivizing producers to sell rare earth products to local Chinese buyers. In August 4,181 metric tons of rare earth minerals worldwide as compared to 4,723 tons in August as well as 3,935 in September 2023.

According to analyst Yang Jiawen at Shanghai Metals (SMM) Market (opens in a new tab) “Some exporters preferred to sell domestically amid a price rally driven by improved demand and tight supply last month.”

Pricing dynamics include a Chinese spot price increase of almost 5% month to month of praseodymium-neodymium oxide priced at 428,000 yuan per ton (USD $60,114.91) by September 30.

Rare Earth Exchanges recently reported on the significant changes made on Oct. 1, 2024, as China implements export restrictions. Prices were higher based on a confluence of factors from less output, production quota dynamics and improved seasonally demand tightened domestic supply.

Yang, at SMM further elaborated “meanwhile, overseas buying interest for magnet products receded amid the growing supply outside China.”
According to the Reuters report rare early imports declined 32% from the year before to 10,804 tons. This equaled 102,489.1 tons from January to September, a year-on-year decline of 23.7%.

Also check out Minning.com (opens in a new tab) for a good update.