Imports of unlisted rare earth oxide rose 36.1% YoY in H1

SHANGHAI, Jul 27 (SMM) - The General Administration of Customs released detailed data on China's rare earth imports and exports in June. China's imports of unlisted rare earth oxide in June increased by 64.9% year on year to 2,635.271 mt, down 12% from the previous month; imports in January-June were 14,626.32 mt, up 36.1% on the year.

The imports were mainly from Myanmar (88.96%, 13,003.6 mt), Malaysia (9.16%, 1,339 mt), and Vietnam (0.91%, 133.028 mt) in H1.

China has suspended imports of rare earth ore from Myanmar from the previous week amid worsening Covid-19 pandemic. Tengchong will send medical staff to Panwa for PCR tests, which is expected to take one month. This will exert a serious impact on supply of medium yttrium-rich europium ore in China. The unlisted rare earth oxide is expected to reduce 1,500 mt (REO) in July.

Imports of unlisted rare earth oxide are likely to fall sharply in July.

Domestic supply also trended lower. Separation and metal plants in Sichuan, Guangdong, Inner Mongolia and surrounding provinces have successively reduced or suspended production mostly due to environmental inspections. A leading plant in Sichuan said that metal stocks are almost exhausted at present as separation plants have not resumed production.

Electricity load went up amid high temperature in many places. Power supply tightened in Shaanxi, Henan, Hunan, and Sichuan. Besides, Inner Mongolia, Ganzhou, Yunnan, Ningxia and surrounding regions have issued power curtailment notices. 

According to SMM survey, some rare earth metal factories in Inner Mongolia have been seriously affected by power restrictions, but the impacts on neodymium praseodymium supply are minor. Metal plants will give priority to lanthanum and cerium when reducing output due to high unit price of neodymium praseodymium.

China's rare earth raw material supply is expected to tighten in July, and prices increase of rare earth products is likely to exceed expectations in H2 as magnetic materials companies will prepare for orders of 2022 in August-September.