China's Rare Earth Magnet Exports Increase in July Amid Global Restocking Demand

Chinese exports of rare earth permanent magnetic materials saw a notable rise in July, reflecting growing restocking demand from international markets. According to Chinese customs data, shipments of permanent magnets (classified under HS code 85051110) increased by 11% year-on-year and 2% month-on-month, reaching 5,278 metric tons in July.

This marks the fifth consecutive month of export growth since February, when shipments hit a year-low of 3,326 metric tons. Despite this upward trend in volume, the average export price of these magnets has continued to decline. In July, prices averaged $48,729 per ton, a sharp 20% decrease from $60,885 per ton in the same month last year, and a slight 1.3% drop from June. The sustained drop in prices, now in its fourth month, has encouraged more overseas buyers to replenish their stocks.

The decline in export prices is attributed to several factors, including increased production capacity in China's magnet manufacturing plants, a slowdown in global magnet demand, and a reduction in rare earth feedstock prices.

From January to July, China exported a total of 32,812 metric tons of permanent magnets, a modest increase from 31,727 metric tons during the same period last year. However, the average export price for this period dropped significantly to $52,118 per ton, down 21% from $66,149 per ton in the previous year.

Germany, South Korea, and the United States continue to be the largest consumers of China's permanent magnets, collectively accounting for 42% of the total exports in the first seven months of 2024. Notably, exports to Hungary, Mexico, and Malaysia have shown the most significant growth during this period.