China: Rare earths soar for the first time in 3 years! : US 80% importS from China
Rare earth international market:
Rare earth used for EV motor magnets.
The international market has skyrocketed and has hit a high for the first time in about three years since November 2017.
“New energy vehicles” such as EV:
In China, sales of EVs and other vehicles in October doubled from the same month of the previous year to 160,000 units.
Demand surged and prices were pushed up.
Target of export restrictions on strategic goods:
In addition, China may include rare earths in the “export restrictions on strategic goods that will come into effect on December 1.”
There is a growing sense of caution in the city about further price increases and procurement difficulties.
China’s share of ore production:
China occupies about 60% of the ore production share.
Japan depends on China for about 60% of its imports.
China’s supply and demand trends will be greatly affected.
Neodymium market price:
The market price of neodymium, which is a kind of rare earth and is used for motor magnets.
Currently, 1 kilogram = 79 dollars.
It is about 40% higher than the low price in June.
In November, the surge in EV demand in China has strengthened the momentum.
It is about 16% higher than the end of October.
New switch
US President Donald Trump signs executive order to eliminate dependence of rare minerals on hostile foreign forces
New York
October 06, 2020
US President Donald Trump:
On September 30, a presidential decree was signed to eliminate the dependence of rare minerals on foreign hostile forces.
Declared a national emergency under the National Emergency Law regarding the situation where rare minerals are excessively dependent on foreign hostile forces.
At present, China is also paying close attention to the trend of the export control law that permits the export of strategic goods.
The details of the export control law have not been revealed.
Rare earths are also used in military equipment such as guided missiles.
Therefore, it may be subject to regulation, and “supply is constrained: if it is restricted, the market price will rise further.”
US rare earth imports
The United States imports 80% of rare earths from China.
He also pointed out how China implemented a rare earth export ban on Japan in 2010, and expressed concern about its market-distorting movement.
-JETRO
https://www.jetro.go.jp/biznews/2020/10/37fc650ea8ac78e0.html
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