【By Guan察者网, Liu Bai】

Reuters reported on November 20 that according to the latest data released by the Chinese Customs, the export volume of rare earth magnets in October fell by 5.2% month-on-month, continuing for the second consecutive month, but shipments to the United States surged to the highest level in nine months.

As the world's largest producer and exporter of rare earth magnets, China exported 5,473 tons of rare earth magnets in October, which is lower than 5,774 tons in September, but increased by 15.8% compared to 4,725 tons in the same period in 2024.

However, exports to the United States surged by 56.1% month-on-month in October, reaching 656 tons, the highest since January this year.

Industry sources said that China has begun designing a new rare earth licensing system, which may speed up shipments, but this is unlikely to reach the level of completely lifting restrictions as desired by Washington.

By country, Germany, the United States, South Korea, Vietnam, and India were the top five destinations for China's rare earth magnet exports last month.

So far this year, China's cumulative exports of rare earth magnets have reached 45,290 tons, a decrease of 5.2% year-on-year. The export volume reached a seven-month high in August.

On March 7, 2024, Shanghai, China International Powder Metallurgy and Ceramics Exhibition, China Rare Earth Group, rare earth products. IC Photo

Nikkei News also noted the October data, stating that China's exports of rare earth magnets to the United States in October were 656 tons, an increase of 4.5% year-on-year. This was the first year-on-year increase in three months, with a 56.1% increase from the previous month.

The report mentioned that with the deadlock in Sino-US negotiations, China reduced its exports of rare earth magnets to the US to 46 tons in May (over 400 tons per month in 2024) and asked the US to ease restrictions on Chinese semiconductors. As the negotiations continued, exports to the US rebounded to 619 tons in July, then declined in August and September.

By country, the largest exports to Germany increased by 55.9% year-on-year to 1,118 tons, ranking second after exports to the United States. The third was exports to South Korea, with a volume of 569 tons, an increase of 31.3% year-on-year.

The Japanese media particularly focused on exports to Japan: exports to Japan in October increased by 30.2% year-on-year to 226 tons. However, if semi-finished products of rare earth magnets - such as magnetic powders and alloys - are included, the total decreased by 18.3% to 538 tons.

The report stated that due to Japanese Prime Minister Taro Kono's testimony in the Diet regarding "Taiwan's situation," China is exerting economic pressure on Japan, and there are concerns that this situation could expand to the rare earth sector.

In global rare earth production, China accounts for 70% of the share, and the production of rare earth magnets exceeds 80% of the share. Experts familiar with rare earths pointed out: "In rare earths, the exports of heavy rare earths to the US and Japan remain very limited."

China has repeatedly emphasized on the issue of rare earth export controls that the relevant measures are normal practices to improve China's export control system in accordance with laws and regulations, reflecting China's commitment as a major country to maintaining world peace and stability, and China is committed to maintaining the safety and stability of the global supply chain.

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