Just over a year after export restrictions for gallium and germanium came into force, the Chinese Ministry of Commerce announced similar rules for antimony on 15 August 2024. They will apply from 15 September 2024 to both the semimetal and its various processing forms and technologies for preparation and further processing. We have summarised the development for you in our market commentary. TRADIUM Managing Director Matthias Rüth analyses the implications of this latest example for China's strong market position on the raw materials markets.
In mid-August 2024, the Chinese Ministry of Commerce announced new requirements for the export of critical raw materials. After licences had already been issued since last summer for the Export of gallium, germanium and graphite, this will also apply to antimony and its various processing forms and technologies for preparation and further processing from 15 September 2024. The semi-metal is used as an alloy component for hardening other soft metals such as lead, copper, tin or zinc, but is also required for the production of flame retardants. According to U.S. Geological Survey is the world's largest producer of antimony with a share of 48 per cent.
Dual-use goods and national security: the background to export restrictions
As with the previously mentioned raw materials, the step is being taken with reference to national security, as these are so-called dual-use goods that can be used for military and civilian purposes. The export of Gallium from the People's Republic is now approaching the previous year's figures, while the situation is different for Germanium out. Exports have continued to fall since April and are now well below the previous year's level. There have recently been rumours in the industry that the National Administration for Food and Strategic Reserves wants to buy around 100 tonnes of germanium, according to the news agency Reuters.
"China is once again reminding the international community of its market power by adding an additional critical raw material to the list of export goods subject to authorisation. This fits seamlessly into a series of measures with which Beijing is consolidating its control over strategically important raw materials and technologies. China's dominant role is already evident in metals such as gallium, germanium and rare earths - a pressure that is increasingly being felt by the processing industry in Western countries. The situation is becoming increasingly challenging for buyers, as the speed with which China announces, implements and consistently pursues new export regulations has increased significantly in recent months. The question arises as to which raw materials will be affected next. One thing is indisputable: as long as China continues to expand its position as a raw materials giant, Western industries will be challenged more than ever to secure their raw material supplies and supply chains."
TRADIUM Managing Director Matthias Rüth
