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| China rare earth export licences |
China Eases Rare Earth Export Controls Amid Trade Truce
China has issued the first batch of streamlined rare earth export licences to three major magnet makers. This move fulfills Beijing’s commitment to the United States following recent trade negotiations. As a result, global manufacturers anticipate increased supply stability. Meanwhile, the licences cover JL Mag Rare Earth, Ningbo Yunsheng, and Beijing Zhong Ke San Huan High-Tech.
Impact on Global Manufacturing and Supply Chains
Rare earths remain a strategic input in electric vehicles, defence, and high-tech industries. However, export restrictions introduced earlier this year triggered global supply shocks. In contrast, the new “general licences” allow multiple shipments per supplier, reducing administrative delays. European firms welcomed the change, citing improved predictability despite ongoing concerns over transparency.
Outlook for Rare Earth Markets
Shipments of rare earth magnets from China are gradually recovering, with US exports hitting a nine-month high in October. Nevertheless, total supply remains 20% lower year-on-year. Therefore, market participants remain cautious, monitoring whether the licence rollout will expand beyond major firms. These developments signal potential stabilization, but export control risks persist.
ScrapInsight Commentary
China’s streamlined licences reduce immediate supply disruptions for global manufacturers. As a result, rare earth prices may stabilize in the short term. Long-term market dynamics will depend on potential expansion of licensing criteria and ongoing US-China trade negotiations.
