China’s exports of rare earths surged in May, reaching a record high of 6,217 metric tons, according to customs data released on Friday. This marks a 35.9% increase from the same period last year, driven by a wave of restocking from overseas buyers.
Rare earths, a group of 17 minerals, are essential components in a wide range of products, including lasers, military equipment, electric vehicles, wind turbines, and consumer electronics. The significant jump in exports last month was attributed to overseas buyers stocking up on supplies ahead of the upcoming summer lull in production.
Analysts believe that the rise in exports was also influenced by the upward trend in domestic prices from March to May, prompting international buyers to place orders sooner to avoid potential price hikes. However, experts anticipate a decrease in exports in June following the high volumes in May.
China currently dominates the global rare earths market, accounting for 70% of mining and 90% of refined output worldwide. In the first five months of 2024, China’s rare earths exports totaled 24,266.5 tons, reflecting a 14.3% increase year-on-year, as per customs data.
On the other hand, China’s rare earths imports in May saw a 2.7% rise compared to the same period last year, reaching 13,747 tons. However, total imports for the January-May period declined by 14.3% year-on-year to 62,589.2 tons, as shown in the customs data.
With China continuing to dominate the rare earths market, fluctuations in exports and imports are closely monitored by industry experts and analysts.
