China’s rare earth metal exports to outpace new rules

BEIJING: Export of rare earth elements in China, where the leading manufacturer is, is likely to increase ahead of new rules due to come into effect on October 1, a state-funded study shows Antiques he said on Tuesday.

The regulations were issued on Saturday by The State Council of China, or the cabinet, establish regulations for mining, smelting and trading materials used to make products ranging from magnets in electric vehicles to consumer electronics.

The government also said China will establish an information system to track the circulation of rare earth products, a move Antaike said is aimed at preventing smuggling and illegal trade.

Antaike said in a post on its WeChat account that the regulations, coupled with China’s recent efforts to regulate trade in rare earth elements and other critical minerals, could pose a risk to the market.

“Exports are likely to increase in the short term due to a possible wave of stockpiling ahead of the entry into force of the regulations.” added.

In December, China announced it would ban the export of technology to produce rare-earth magnets, adding to an existing ban on the export of technology to extract and separate key materials.

China also said it would require rare earth exporters to provide information on supplies and quantities under new rules that come into effect on October 31.

Beijing also imposed restrictions on the export of products containing germanium and gallium, as well as some graphite products, citing considerations of national security and national interests.

Exports of products containing germanium and gallium, widely used in the chipmaking sector, rose sharply in July, a month before controls were introduced on the sector.