SHANGHAI, Aug 26 (SMM) – China's rare earth exports in July stood at 1,620.3 mt, down 69% from a year earlier and 44% from the same period last year. In the first seven months of this year, China's rare earth exports accumulated to 22,735.8 mt, a decrease of 20.2% compared with 28,475.6 mt in the same period of 2019, according to the data released on the website of the country's General Administration of Customs (GAC).

Recently, Gao Feng, spokesman of the Ministry of Commerce, said that according to the reflection of the industry, the production and operation activities of rare earth downstream enterprises have slowed down due to coronavirus crisis this year. Chinese enterprises carried out international trade business according to changes in international market demand and risks.

In the first half of the year, affected by the pandemic and oversupply in the industry, the demand of downstream industries was reduced with weak end users’ demand and the relatively sufficient supply. Prices of rare earth products showed a steady or slow upward trend, and prices of light and heavy rare earths continued to differentiate. Prices of lanthanum and cerium products continued to run weakly with the prominent contradiction between supply and demand. Praseodymium and neodymium products began to perform strongly in July, and prices continued to rise. The prices of dysprosium, terbium and other products fluctuated upward.

Similarly, affected by the pandemic, the contradiction between supply and demand in the market intensified in the first half of the year, and the pressure on the production and operation of upstream and downstream enterprises in rare earth industry increased. The business performance of enterprises declined first and then rose, and the profitability of some enterprises declined. Under the various supporting policies issued by the state, the production, operation and profitability of enterprises are gradually recovering.

The main reason for the sharp decline in China's rare earth exports in July this year is still the impact of overseas pandemic. From the current trend of overseas pandemic situation, the total exports in the second half of this year may be lower than that in the same period of last year, showed an SMM survey.