China’s rare earth magnet exports to the US hit six-month high

China exported 619 tons of rare earth magnets to the US in July, a 5% year-on-year increase and a 76% month-on-month increase, reaching a six-month high. Due to the Sino-US negotiations, China has promoted the normalization of rare earth magnet exports to the US.

Chinese research company Ferroalloy Online compiled data based on data from the General Administration of Customs of China. China’s total rare earth magnet exports in July were 5,577 tons, a 6% year-on-year increase and a 75% month-on-month increase, returning to a level comparable to the previous year.

By country and region, exports to the US ranked second. Germany ranked first, with 1,115 tons, a 3% year-on-year decrease and a 46% month-on-month increase, essentially returning to a level comparable to the previous year.

In July, 232 tons of rare earth magnets were exported to Japan. While this represents an increase from the previous month, the recovery has been slow. Japanese companies have increased imports of semi-finished rare earth magnet powder and alloys for magnet production. Including powder and alloys, China’s exports to Japan in July have recovered to 686 tons, exceeding the same level as the same month last year.

Exports to India reached 418 tons, a 60% year-on-year increase, reaching approximately 2.4 times the previous month’s level. India has proposed easing rare earth export restrictions with China. According to Indian media reports, Wang Yi, a member of the Political Bureau of the Communist Party of China and Foreign Minister, who was visiting India, stated that supplies would be restored.

China accounts for approximately 70% of global rare earth production and over 80% of the global market for rare earth magnets. Due to China’s tightening of rare earth magnet export restrictions, some US factories, including Ford Motor Company, were forced to suspend operations.

During the Sino-US negotiations, in addition to tariffs, China also requested that the Trump administration relax semiconductor controls on China. The US side has allowed some semiconductor exports from Nvidia. The US has also demanded that China normalize its rare earth magnet exports to the US, raising concerns about the export situation.