China Rare Earth Exports Fell in July and Prices Rose, What is the Driving Force?

Published: Aug 10, 2021 14:59

Save

China rare earth exports in July stood at 3955 mt, down 1.4% month on month but surged 144.2% year on year according to the General Administration of Customs. The average export prices was $16460/mt, up 23% month on month and 5% year on year. The export volume totalled 1620 mt in the same period of last year.

SHANGHAI, Aug 10 (SMM) - China rare earth exports in July stood at 3955 mt, down 1.4% month on month but surged 144.2% year on year according to the General Administration of Customs. The average export prices was $16460/mt, up 23% month on month and 5% year on year. The export volume totalled 1620 mt in the same period of last year.

The fall of export volume in July on a monthly basis was mainly due to the tight domestic supply in the month as cargo holders were unwilling to sell, combined with summer break in overseas market.

On the other hand, prices of domestic mainstream rare earth products surged, leading to MoM increases in export prices as the overseas market was also impacted by the high quotation. For example, Pr-Nd oxide averaged at 557000 yuan/mt in the month, up 18% on a month basis; Pr-Nd metal averaged at 694000 yuan/mt, rising by 19% from the previous month.

In addition, the YoY growth rate of rare earth exports in July surged to 144.2%, because the overall exports were comparatively low last year due to the pandemic. However, export prices in July only added 5% on the year in spite of the board increases of prices among mainstream products. Why is that?

SMM thinks that the comparatively mild volatility in prices of lanthanum and cerium products, which made up the majority of the total exports, was the leading cause. For example, the prices of lanthanum oxide and cerium oxide in July declined 19% and 15% respectively year on year; while Pr-Nd oxide surged nearly 90%, indicating a much weaker price pattern of lanthanum and cerium.

The tightened domestic supply is likely to sustain in the short term in light of the resurged pandemic across the globe and China, continued challenges on the prevention of imported COVID cases, hindered imports of ionic ore from Myanmar, and disrupted production among some companies because of environmental protection measures.

China rare earth export volume is expected to trend down further in August.

rare earth exports

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

30 mins ago

Rare Earth Prices Diverge, with Pr-Nd Strong and Medium-Heavy Rare Earth Weak [SMM Rare Earth Daily Review]

[SMM Rare Earth Daily Review: Rare earth prices show divergence, Pr-Nd stronger while medium-heavy rare earths weaker] Overall, due to limited downstream inquiries, the trading atmosphere in the rare earth market was sluggish. For Pr-Nd products, offer prices edged up slightly as upstream producers held prices firm and held back from selling, but actual transaction performance was not ideal. In the short term, amid the tug-of-war and stalemate between upstream and downstream, Pr-Nd product prices are expected to move sideways in a narrow range.

30 mins ago

5 hours ago

Sinomine Sells African Lion Mining for $19.5M, Exits Zambian Rare Earth Project

[SMM Rare Earth Flash News] Sinomine Resource Group announced that its controlling and wholly-owned subsidiaries plan to transfer 100% equity of African Lion Mining for $19.5 million, and will exit its Nkombwa rare earth-phosphate ore project in Zambia upon completion of the transaction. The mine holds a large-scale mining license covering approximately 1,850 hectares, granted in December 2024, with resource volumes including 2.78 million mt of rare earth oxide ore (average TREO grade of 2.76%) and 21.82 million mt of associated phosphate ore (average P₂O₅ grade of 7.06%). Under the agreement, the transaction consideration will be paid in three installments, with a pledge of the target company's equity and mining assets as performance security. Sinomine Resource Group stated that this sale represents the monetization of mining rights investment achievements and is expected to recognize a net profit attributable to shareholders of the parent company of approximately $9.84 million, positively impacting its operating performance and financial position.

5 hours ago

22 hours ago

Lynas Reports 8% Increase in Rare Earth Production, Despite Pr-Nd Decline; Sales Revenue Up 70% YoY

[SMM Rare Earth Flash] Australian rare earth producer Lynas reported its April-June 2026 quarterly results, showing that its total rare earth oxide (TREO) production increased by 8% YoY, driven by capacity improvements at the Mount Weld mine in Western Australia, the Kalgoorlie processing plant, and the Kuantan refinery in Malaysia. However, affected by issues with the Mount Weld water circulation system and concentrate quality, Pr-Nd production for permanent magnets fell 11% YoY. These issues have since been resolved, and the company expects to return to full-capacity operations this quarter. In the same period, heavy rare earths dysprosium and terbium achieved production of 19 mt, marking their first commercial production. Driven by higher Pr-Nd prices, increased heavy rare earth sales, and product premiums, the average selling price of rare earth oxides rose 63% YoY to A$98.2/kg, pushing sales revenue up 70% YoY. In addition, Lynas has initiated client certification for samarium oxide and raised the investment budget for its heavy rare earth project in Malaysia. It plans to bring products including gadolinium, yttrium, and lutetium into production from 2027 to 2028.

22 hours ago