China Customs data released on Sunday (April 20) showed that since China implemented export restrictions on key minerals, the export volume has continued to decline, and buyers in some regions, especially in Europe, have been basically excluded from the supply chain. Reuters reported that despite the persistently high global prices of key minerals, China's export controls on three key metals have kept their export volumes at historically low levels, highlighting Beijing's growing dominance in the global mineral supply chain.

China is the world's largest producer of these three key metals. Although these metals are niche, they play an indispensable role in clean energy, semiconductor manufacturing, and defense industries. Since 2023, Beijing has gradually included these three metals in the export control list and completely banned exports to the United States last December.

According to regulations, goods on the export list must apply for a license before export, and this process lacks transparency, allowing China to strengthen its long-established control over mining and refining sectors.

China Customs data released on Sunday (April 20) showed that since the implementation of export restriction measures, the export volume has continued to decline, and buyers in some regions, especially in Europe, have been basically excluded from the supply chain.

The data showed that in the first quarter of 2024, China's antimony product exports decreased by 57% year-on-year, and germanium product exports dropped by 39%. In March, gallium exports reached their lowest level since October 2023. Although gallium exports in the first quarter of this year were slightly higher than the same period last year, they remained far below the levels before the restrictions were implemented in 2022.

Even with some antimony products being exported, their destinations are becoming increasingly concentrated. In March, after five months, China resumed a small amount of antimony product exports to Belgium and Germany, but the quantities were far below historical averages. Meanwhile, the Netherlands, which was once a major buyer, has not received any antimony products from China since September last year.

The declining trend in exports of these three metals has also drawn attention: China recently added seven rare earth elements to the export control list, and the focus now is on how many export licenses will be issued for these rare earths and how fast the approval process will be. Exporters said that applying for a license is expected to take several months, and if the export destination is the United States, the waiting time may be even longer.

Since 2023, China has stopped exporting germanium and gallium to the United States, and antimony exports have been completely suspended since September last year.

China's reduced exports have prompted overseas buyers to seek alternative sources worldwide, driving up global prices, which in turn supports domestic Chinese prices. As of April 18, China's spot price of antimony has surged nearly two-thirds this year to reach RMB 230,000 per ton (approximately USD 31,500), setting a new record high.

Original Source: https://www.toutiao.com/article/7495636850439914023/

Disclaimer: The article represents the author's personal views. Please express your attitude by clicking the 【Like/Dislike】 buttons below.