China's export restrictions for certain rare earths are having an impact, threatening shortages in Europe. The reason why TRADIUM is still able to deliver is due to the raw material supplier's unique business model.
Despite the lack of exports of heavy rare earths Dysprosium and Terbium from China in May, TRADIUM was able to continue to reliably supply its industrial customers. This is made possible by a business model that is based on physical possession and professional storage and is unique in this form in Europe.
China will not supply dysprosium and terbium in May
In April, China Export restrictions introduced for several rare earths. The latest data from the Chinese customs authorities now shows the full impact of these measures, because exports of dysprosium and terbium came to a standstill in May. A decline in exports could already be observed in April.
In the summer of 2023, China introduced similar controls for gallium and germanium, which led to a temporary ban on exports. The processing time for licences at that time was around 45 working days - a possible indication of the duration of the current measures for rare earths.
Dysprosium and terbium are key raw materials for high-tech industries, especially in neodymium-iron-boron magnets (NdFeB), which are used for electric cars, wind turbines and the defence industry. The elements belong to the so-called heavy rare earths, which are almost exclusively produced in China and Myanmar. Western industry is therefore highly dependent on them. The Chinese trade measures have been dominating the news for weeks around the commodity markets.
Magnet exports also affected
Exports of rare earth magnets from China have also fallen sharply recently. These often contain dysprosium or terbium. Although the Chinese customs authorities do not currently differentiate between magnets with and without these critical elements, analysts assume that the standardised classification will result in increased inspections - and thus further delay exports.
TRADIUM secures supply - even in crisis mode:
While many retailers and processing companies are Scarcity of rare earths The strength of a forward-looking business model is demonstrated by the fact that TRADIUM has been able to continue supplying its customers with dysprosium and terbium in recent weeks. Thanks to physically available stocks, which are stored under secure conditions at the Frankfurt site.
"We are currently experiencing how important it is not only to trade raw materials, but to keep them physically available. Our customers benefit from having access to strategically relevant metals through us, regardless of whether supply chains are functioning or not," says Jan Giese, Senior Manager Minor Metals and Rare Earths at TRADIUM.
Private individuals can order strategic metals such as dysprosium and terbium from TRADIUM as Acquire tangible assets and become an important link in international supply chains. Subsequent sales are made directly to processing companies via the company's established industrial contacts. A model that sensibly combines the acquisition of material assets and security of supply.
Wake-up call for industry and politics
Current developments clearly show how uncertain the supply of critical raw materials is. For many branches of industry, this could be the reason to Stockpiling strategy to rethink. TRADIUM focusses on long-term availability and enables companies to establish physical warehousing as part of their risk provisioning.
