Back in October, China’s rare-earth magnet exports had an unusual spike. Even as the country posted an annual decrease overall, it enjoyed a tremendous increase in shipments to America. Year-to-date figures show that exports from China so far this year have been just 45,290 tons, a drop of 5.2% compared to last year. This decline comes on the heels of a decrease from September’s record high export volume of 5,774 tons.
In comparison, October 2024 experienced a YoY jump of 15.8%, with exports up from 4,725 tons. The General Administration of Customs released that data earlier this week. Already in October, China’s total shipments overseas jumped to 5,473 metric tons. This recent decline in total exports underscores the struggle for dominance in an increasingly competitive global market for rare-earth materials.
China currently dominates global production and export of rare-earth magnets. These magnets are essential building blocks for diverse technologies that range from cutting-edge auto technology to advanced military gear. Ceheng adds that China’s rare-earth magnet exports hit a seven-month high in August, suggesting strong prior demand. Yet the unexpected drop in October this year has got everybody wondering what will happen in next years market.
In September, China’s rare-earth magnet exports were headed to Japan, South Korea, and Taiwan. Germany, the United States, South Korea, Vietnam, and India were the top five destinations in volume. Export shipments to the U.S. soared 56.1% month-over-month from September to October, totaling an astounding 656 tons. That figure is the highest month-to-month total since January.
China announced last week it will suspend its rare-earth export control measures for the year ahead. This decision comes right as a historic surge in pressure on U.S. China announced this earlier this month on October 8. It is in line with their pledge to DC from the third summit in Busan, South Korea. The suspension intends to calm trade relation disputes between the two countries.
China is working on a new darling of a licensing regime headed for rare-earth exports that would speed those shipments up. Industry sources say that this isn’t necessarily a silver bullet that will lift all existing restrictions. U.S. officials acknowledged they had wanted a more extensive rollback.