Jul 25.07.2019, 3.966 - China exported 26,8 tons of rare earths in June, a decrease of XNUMX percent compared to the previous year. This emerges from data released Tuesday by the General Administration of Customs (GAC). Analysts said the reduced exports would put pressure on the US and could hit a wide range of US manufacturing industries.
The estimated value of rare earth compounds and metals imported by the US into 2018 was 160 million dollars, with 80 percent of the total coming from China, according to a report from the United States Geological Survey (USGS) in February.
"The heavy reliance on overseas supply chains creates vulnerabilities in the relevant American industry," Chen Zhanheng, an analyst with the Association of China Rare Earth Industry, told the Global Times on Tuesday.
Total exports of rare earth and related products in June amounted to 7.762 tonnes, which represents a decline of 14,9 percent over the previous year. Exports of alumina, which is widely used in the aerospace, semiconductors and automotive industries, decreased by 96,8 per year to 3.757 tonnes.
“On the one hand, China has increasing domestic demand as industries that rely on rare earths such as semiconductors, aerospace and new electric vehicles have seen rapid development in recent years. On the other hand, the global economy is under increasing pressure, which is having a negative impact because of the US trade protectionism, "said Chen. “The US is under pressure from rare earth supplies after starting the trade war with China. Now the US is being hoisted with its own petard when China indicated that it will keep its options open for the use of rare earths as a weapon. ”“ Chen continued.
American manufacturers, from semiconductors and electric vehicles to airplanes and missiles, rely on imported rare earths from China, according to the USGS. "The US fears that China will restrict exports of rare earths, which will result in a huge loss for the US manufacturing industry as the supply chain may be disrupted," said Chen.
The US is concerned about the supply of rare earths. US President Donald Trump, according to the Defense Production Act of the 1950 years, a US law once used to protect its steel production capacity, has decided, according to a White House memorandum, to compensate for the shortage in the production of rare earth permanent magnets.
The Pentagon tried the 15. July to provide a quick response to US rare earth production from domestic miners and refineries ahead of the 31. July, Reuters reported.
Source: Global Times Translation: Institute for Setlene Soils and Metals
