Rush Shipment of Inventory Ore Before Rainy Season, Surge in Unlisted Rare Earth Oxide Imports in May [SMM Analysis]

SMM, May 31: Recently, the General Administration of Customs released the import and export data for the period from January to May 2025. According to customs data, China's imports of rare earth metal ores from January to May 2025 reached 18,737 mt, representing a 23% YoY decrease. In May alone, imports stood at 1,122 mt, marking a 70% MoM decrease and an 81% YoY decrease.

Since April, MP has suspended exports of rare earth concentrates to China due to tariff issues. Although the tariff issues were subsequently alleviated, China's export controls on rare earths have prompted other countries to accelerate the development of their domestic rare earth industries, particularly the US and Australia. Therefore, it was within the expectations of most industry players that there would be a significant decline in rare earth metal ore imports from the US on both a YoY and MoM basis.

From January to May 2025, China's imports of unlisted rare earth oxides amounted to approximately 21,925.6 mt, showing an 8% YoY decrease. However, there was a substantial increase in imports of unlisted rare earth oxides in May, with imports reaching around 9,076.4 mt, representing an approximate 67% YoY increase and a 39% MoM increase.

According to miners, during the initial recovery period of Myanmar's mines in April, there was a significant amount of local inventory data. As the end of Q2 and the beginning of Q3 each year mark the local rainy season, miners were concerned about the impact of weather on the transportation of ion-adsorption ore to China. Consequently, they expedited transportation in April and May, leading to a surge in imports of unlisted rare earth oxides during these two months. It is expected that imports in this category will decline in June and July.

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