China's rare earth exports plummet, causing global supply concerns
- China's customs data revealed that rare earth mineral exports rose by 6% in 2024, despite reduced domestic demand.
- The total export volume of these resources reached its highest level since 2014, yet the overall value fell sharply due to plummeting prices.
- This situation indicates a complicated interplay between increasing exports and declining economic return, signaling potential future challenges for the industry.
In December 2024, China exported 3,326 tons of rare earth minerals, which reflects a decrease from 4,416 tons in November 2024 and 3,439 tons in December 2023. This trend is part of a larger picture indicating that, despite a 6% increase in the total exports of rare earths for the year, the overall value of these exports significantly declined, falling by 36% to $488.8 million. The drop in value is attributed to falling prices for rare earth materials among abundant supplies in the market. In particular, the average spot price of praseodymium oxide fell 26% in 2024 after a substantial 37% decline in 2023. Following ongoing economic uncertainties, domestic demand in China weakened, impacting the need for these resources domestically and internationally. The data illustrates the paradox where increased exports do not translate to higher revenue, underscoring the challenges facing the rare earth industry in a climate of fluctuating demand and prices. Additionally, rare earth imports into China saw a significant decline of 41.1% in December 2024 compared to the previous year, totaling 132,931 tons for the year, a 24.4% reduction from 2023. Decreased supplies from key exporters like the United States and Myanmar were primarily responsible for this decline, further complicating the situation for China’s rare earth market. Political and military tensions in Myanmar also disrupted the supply chains, exacerbating the downward trend in imports.