The recent rapprochement in the tariff dispute between China and the USA has raised hopes of an end to export restrictions. However, there is currently little to suggest that the supply situation will ease.
At the beginning of the week, the US and China came closer together in their tariff conflict: Punitive tariffs on Chinese imports and counter-tariffs on US goods were significantly reduced for a period of 90 days. There are also to be new negotiations. These developments have also raised hopes of an easing of the Export controls introduced by China for certain rare earths at the beginning of April. This is not - as sometimes reported - a complete export ban. Nevertheless, the industry is currently struggling with restrictions, as time-consuming authorisation procedures are now required for exports.
These measures are not officially directed against individual countries, but at the same time numerous US companies from the defence sector were specifically excluded from raw material deliveries by further government decisions. These sanctions were also suspended today, Wednesday, for 90 days - which could give the impression that an end to the export restrictions is imminent. The fact is, however, that the companies affected are now simply being put on an equal footing with other customers who still require export licences for their deliveries. This is by no means a guarantee that these licences will be granted.
Jan Giese, Senior Manager Technology Metals and Rare Earths at TRADIUM:
"Despite the recent easing of tensions in the trade conflict, the export controls on the seven rare earths and other metals from China remain in place. For purchasers of strategic metals, this effectively changes nothing. It remains to be seen whether Beijing will now officially allow more material to be exported again via the export licences."
Conclusion: For the time being, the existing export restrictions for the heavy rare earths dysprosium, terbium, yttrium, gadolinium, samarium, lutetium and scandium and their compounds will not change. Through additional controls, China also wants to ensure that these materials do not leave the country illegally, as reported by the industry portal Rawmaterials.net.
