China’s Rare Earth Magnet Exports Surge in August

Rare Earth Magnet

China's exports of rare earth permanent magnetic materials continued to climb in August, bolstered by strong seaborne demand. According to Chinese customs data, shipments of permanent magnets (HS code 85051110) reached 5,325 tonnes in August, reflecting a 26% year-on-year increase and a 0.9% rise from the previous month. This marks the sixth consecutive month of growth since hitting a record low of 3,326 tonnes in February.

Falling Prices Fuel Overseas Demand

Despite the surge in export volumes, prices for permanent magnets continued to decline. The average export price in August was $46,985 per tonne, down 21% from a year earlier and 3% lower than in July. This marked the fifth consecutive month of price declines, prompting more overseas buyers to stockpile materials at reduced costs. The lower prices were attributed to rapid production expansions in magnet plants, falling rare earth feedstock costs, and slowing demand from key industries like automotive and electronics.

For the first eight months of the year, China’s rare earth magnet exports grew 6% to 38,138 tonnes, while the average export price dropped 21% to $51,400 per tonne. Major importers such as Germany, South Korea, and the US accounted for 42% of the total exports, with Hungary, Malaysia, and Mexico seeing the most significant growth.