Rare Earth Freeze

China's rare earth exports have significantly declined in recent months, reaching multi-year lows. Several factors contribute to this downturn, including weakening global demand, particularly from key sectors like electronics and wind turbines. Lockdowns in China related to COVID-19 outbreaks disrupted production and supply chains, further impacting export volumes. Additionally, Beijing's increasing focus on domestic consumption and value-added processing of rare earths, rather than simply exporting raw materials, is playing a role. The article highlights that Chinese exports of rare earth metals hit their lowest level since 2015 in April and May. This decline has raised concerns among international consumers who rely on China for a significant portion of their rare earth needs. These consumers are worried about potential supply shortages and price volatility. China's government is actively promoting higher value applications of rare earths within its borders. This strategy involves encouraging domestic manufacturers to use rare earths in advanced technologies and products before exporting them, potentially leading to a long-term shift in export patterns. While the recent dip can partially be attributed to temporary disruptions, the broader trend suggests a deliberate policy shift toward greater domestic value addition and potential long-term implications for global rare earth supply chains. find the original article here: https://finance.yahoo.com/news/chinas-rare-earth-exports-grind-140331016.html