China’s rare earth magnet exports dropped by more than half in May, plunging to their lowest monthly volume in over five years, as stringent export controls continue to weigh on outbound shipments.
According to data released by the General Administration of Customs, overseas shipments of rare earth permanent magnets fell to 1,238 tonnes in May, representing a 52.9% decline from April and marking the weakest monthly total since February 2020. On a year-on-year basis, exports were down a steep 74%.
The significant decline comes amid tightened restrictions introduced in April, when Beijing imposed curbs on exports of seven medium-to-heavy rare earth products and selected magnet categories. The move, seen as a strategic response in ongoing geopolitical and trade dynamics, has disrupted critical global supply chains spanning the automotive, aerospace, semiconductor and defence industries.
Despite a pledge earlier this month to accelerate export licence approvals—following a broader US-China agreement to ease trade tensions—industry insiders report that Chinese customs authorities remain cautious. Particular scrutiny is being placed on rare earth magnets due to classification challenges; a single customs code currently covers a wide range of magnet types, complicating the clearance process.
Sources, speaking on condition of anonymity due to the sensitivity of the matter, noted that even lower-performance magnets used in consumer electronics and appliances are being delayed, given the regulatory ambiguity.
The Ministry of Commerce confirmed on Thursday that “a certain number” of export licence applications had been approved, although further details were not disclosed.
Leading Chinese magnet manufacturers JL MAG Rare-Earth and Innuovo Technology recently announced they had secured limited export permits for select clients, signalling that some progress is being made despite ongoing bottlenecks.
Cumulatively, rare earth magnet exports from January to May fell by 14.5% year-on-year to 19,132 tonnes—the lowest level for this period since 2021.
China is the world’s dominant supplier of rare earth magnets, accounting for over 90% of global output. The country’s tightening grip on outbound shipments underscores its strategic leverage over materials critical to high-tech manufacturing and clean energy transition globally.
-Reuters
