SMM News: foreign media recently paid close attention to rare earth issues, some analysts said that China in addition to rare earth metals, there is one of the most lethal weapons, is rare earth processing products rare earth magnets. Nearly 2/3 of the magnet supply in the United States comes from China. Citigroup believes there is "no ready way" for industries other than US defence to break its dependence on Chinese supplies of rare earths.
According to Taiwan's Giant Heng net on June 6, rare earth magnets are powerful permanent magnets made of rare earth alloys, with mainland China accounting for more than 90 percent of the world's output. Among them, the most common neodymium magnets are widely used in a variety of appliances, such as vacuum cleaners, vehicles and jewelry buckles, and even more valuable than rare earth metals themselves. In addition, rare earth magnets are also considered essential in many military weapons.
Citigroup metals analyst Oliver Nugent said in a report that if the ban is extended to rare earth processed products, especially magnets and motors, or to ban third-party transshipment, it will have a serious impact, Citigroup metals analyst Oliver Nugent said in a report.
The report also said that China's magnet exports totaled US $1.7 billion last year, of which US $257 million of the total US imports of about US $395 million came from mainland China.
According to the Hong Kong Economic Journal's website on June 5, the Citibank report points out that the United States can cope if China only imposes restrictions on the export of rare earth metals and alloys to the United States and the rapid construction of processing capacity outside China. However, if the restrictions were extended to manufactured goods such as magnets and permanent magnet motors, the situation would be much more serious, which could lead to supply disruptions in some special industries in the US.
In addition, magnet factories outside China are mainly in Japan and Germany, but both countries also rely on China to import rare earths.
Citi analysts point out that although there are rare earth mines outside China, the processing of rare earths remains inextricably linked to China. Of every 50, 000 tons of rare earth minerals outside China, only about 8600 tons have nothing to do with China, even smaller for certain rare earth elements.
For example, these analysts, such as dysprosium, a heavy rare earth element used in the production of magnets, do not currently have a sizeable separation capacity outside China.