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

Published: Aug 10, 2021 14:59 (GMT+8)

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

1 hour ago

Scrap Pr-Nd Continues to Pull Back, Overall Market Trading Remains Light [SMM Recycled Rare Earth Weekly Review]

[SMM Recycled Rare Earth Weekly Review: Scrap Pr-Nd Continues to Pull Back, Overall Market Trading Remains Subdued] Overall, scrap Pr-Nd prices continued to decline this week. Recycling enterprises pushed for lower prices and limited purchase volumes, with quotes adjusted downward for consecutive sessions. Suppliers showed low willingness to sell, and overall market trading remained subdued. In the short term, scrap Pr-Nd prices are expected to consolidate on a weak note. The subsequent trend will still depend on whether the oxide side can stop falling and whether recycling enterprises' purchase willingness recovers.

1 hour ago

Pr-Nd downtrend center shifts lower; gadolinium falls while holmium rises, showing divergent trends [SMM Rare Earth Weekly Review]

[SMM Rare Earth Weekly Review: Pr-Nd declines with center moving down; gadolinium falls while holmium rises, showing divergent trends] Gadolinium oxide prices were lowered to 178,000-182,000 yuan/mt, falling in tandem with Pr-Nd and leading the declines. Suppliers' willingness to sell increased while buyers stayed on the sidelines, leaving transactions sluggish. Holmium oxide prices were raised to 660,000-665,000 yuan/mt, with the holmium segment strengthening against the trend and oxides leading the gains. Whether transactions can follow through remains to be seen.

1 hour ago

2 hours ago

China Responds to Japan's Yttrium Shortage: Export Controls Aimed at Deterring "Remilitarization"

【SMM Rare Earth Flash】On October 21, Chinese Foreign Ministry spokesperson Mao Ning responded to a Financial Times report that Japan's critical rare earth yttrium supplies could run out within months. Mao stated that China's export controls on Japan are implemented in accordance with laws and regulations, aimed at deterring Japan's "remilitarization" and nuclear weapons ambitions. China's position on maintaining the stability and security of global critical mineral supply chains remains unchanged, and all parties have a responsibility to play a constructive role. According to reports, the yttrium shortage has become the biggest pain point for Japanese materials companies, while U.S. defense supply chains rely on Japan-made components containing yttrium. Japan has asked the U.S. to help persuade China to ease export controls, with U.S. and Japanese officials holding multiple consultations recently. At the G7 summit in June, Japanese Prime Minister Sanae Takaichi said China's rare earth export restrictions on Japan could affect supply chains in G7 countries and related nations.

2 hours ago