China’s shipments of rare earth permanent magnets to the US surged to a nine-month high in October as the two countries engaged in a roller-coaster round of manoeuvring over export controls that led to an easing of trade tensions late last month.
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During the same period, exports to the European Union fell from the level recorded in September.
China is the world’s largest supplier of permanent magnets – essential components in hi-tech products such as electric vehicles and defence systems – and holds a near-monopoly share of the supply and refining capacity for rare earth elements, the trace minerals within the magnets that grant them their unique properties.
According to data released by China’s customs administration on Thursday, shipments of Chinese permanent magnets to the United States surged 56.1 per cent in October to 656.3 tonnes (723.4 short tons), up from 420.5 tonnes (463.5 short tons) in September.
The US absorbed 12 per cent of total shipments, making it the second-largest buyer of Chinese rare earth permanent magnets by country last month, behind only Germany. South Korea ranked third, Vietnam fourth and India fifth.
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Beijing imposed export controls on seven rare earth elements and permanent magnets earlier this year amid escalating trade tensions with the US, with exporters required to obtain government approval before shipping the restricted products overseas.