Rare-earth exports fall 16% in May

China, the world’s largest producer of rare earths, saw a 16 percent monthly drop in those exports in May amid an increased focus on domestic resources conservation and high-quality development of commodities, officials and experts said.

Rare-earth exports by China fell to 3,640 metric tons in May from 4,329 tons in April, according to the General Administration of Customs. In the first five months, China exported 19,266.8 tons of rare earths, down 7.2 percent year-on-year.

“The drop of China’s rare-earth exports is the result of domestic resource conservation and environmental protection, and it is in line with the country’s need for promoting high-quality development,” said Cui Fan, a professor at the University of International Business and Economics.

Cui said escalating trade tensions between China and the United States have also exerted a negative impact on global supply chains, especially in commodity goods such as crude oil, soybeans and rare earths.

“Many markets’ heavy dependence on Chinese supply has exhausted mines at home and caused environmental impacts. It is time for them to increase supplies from other producers such as Russia, Greenland and certain African nations to meet their demand,” Cui added.

Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation, said China has developed advanced separation and purification methods for rare-earth elements with high efficiency and low cost.

“To better exploit strategic rareearth resources, China needs to continuously focus on adding value by making technologically advanced products rather than simply exporting the raw materials,” Mei added.

China produces around 80 percent of the world’s supply of rare earths. However, the country’s rareearth industry faces problems such as smuggling, illegal mining and production, lack of innovation and environmental protection issues.

The National Development and Reform Commission recently held three seminars with industry experts, key enterprises and local government officials to discuss the country’s efforts to better utilize the rare-earth resources, improve industrial structure, protect resources and foster high-quality development in the sector.