China: Rare Earth Metal Market 2024

Rare Earth Metal Market Size in China

After three years of growth, the Chinese rare earth metal market decreased by -5.7% to $X in 2021. Over the period under review, consumption, however, saw a relatively flat trend pattern. Rare earth metal consumption peaked at $X in 2020, and then contracted in the following year.

Rare Earth Metal Production in China

In value terms, rare earth metal production fell modestly to $X in 2021 estimated in export price. In general, production continues to indicate a perceptible decline. The pace of growth was the most pronounced in 2018 with an increase of 32%. Over the period under review, production reached the maximum level at $X in 2012; however, from 2013 to 2021, production failed to regain momentum.

Rare Earth Metal Exports

Exports from China

In 2021, overseas shipments of rare earth metals increased by 53% to X tons for the first time since 2018, thus ending a two-year declining trend. Over the period under review, exports continue to indicate a buoyant expansion. As a result, the exports reached the peak and are likely to continue growth in the immediate term.

In value terms, rare earth metal exports surged to $X in 2021. In general, exports, however, continue to indicate a noticeable downturn. The exports peaked at $X in 2012; however, from 2013 to 2021, the exports stood at a somewhat lower figure.

Exports by Country

Japan (X tons) was the main destination for rare earth metal exports from China, with a 50% share of total exports. Moreover, rare earth metal exports to Japan exceeded the volume sent to the second major destination, the Netherlands (X tons), fourfold. The third position in this ranking was taken by Italy (X tons), with a 7.9% share.

From 2012 to 2021, the average annual growth rate of volume to Japan stood at +6.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: the Netherlands (+60.7% per year) and Italy (+96.5% per year).

In value terms, Japan ($X) remains the key foreign market for rare earth metals exports from China, comprising 67% of total exports. The second position in the ranking was taken by the United States ($X), with a 7% share of total exports. It was followed by the Netherlands, with a 4.4% share.

From 2012 to 2021, the average annual rate of growth in terms of value to Japan totaled -5.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: the United States (+31.7% per year) and the Netherlands (+32.2% per year).

Export Prices by Country

The average rare earth metal export price stood at $X per ton in 2021, picking up by 26% against the previous year. Overall, the export price, however, saw a abrupt slump. The most prominent rate of growth was recorded in 2018 an increase of 40% against the previous year. Over the period under review, the average export prices hit record highs at $X per ton in 2012; however, from 2013 to 2021, the export prices remained at a lower figure.

There were significant differences in the average prices for the major external markets. In 2021, amid the top suppliers, the country with the highest price was Japan ($X per ton), while the average price for exports to Brazil ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Brazil (-1.8%), while the prices for the other major destinations experienced a decline.

Rare Earth Metal Imports

Imports into China

In 2021, purchases abroad of rare earth metals increased by 429% to X tons, rising for the second year in a row after two years of decline. Over the period under review, imports continue to indicate a resilient expansion. The most prominent rate of growth was recorded in 2017 when imports increased by 3,210%. Imports peaked in 2021 and are expected to retain growth in the immediate term.

In value terms, rare earth metal imports skyrocketed to $X in 2021. Overall, imports showed a significant expansion. The pace of growth appeared the most rapid in 2017 when imports increased by 2,229%. Over the period under review, imports attained the maximum in 2021 and are expected to retain growth in years to come.

Imports by Country

In 2021, Vietnam (X tons) was the main supplier of rare earth metal to China, with a 95% share of total imports. It was followed by Thailand (X tons), with a 3% share of total imports.

From 2012 to 2021, the average annual growth rate of volume from Vietnam amounted to +158.0%. The remaining supplying countries recorded the following average annual rates of imports growth: Thailand (-26.8% per year) and Japan (-33.3% per year).

In value terms, Vietnam ($X) constituted the largest supplier of rare earth metals to China, comprising 82% of total imports. The second position in the ranking was held by Japan ($X), with a 3.6% share of total imports.

From 2012 to 2021, the average annual rate of growth in terms of value from Vietnam stood at +179.8%. The remaining supplying countries recorded the following average annual rates of imports growth: Japan (-4.5% per year) and Thailand (-18.7% per year).

Import Prices by Country

In 2021, the average rare earth metal import price amounted to $X per ton, falling by -18.2% against the previous year. Overall, the import price, however, continues to indicate a significant increase. The most prominent rate of growth was recorded in 2014 when the average import price increased by 1,073% against the previous year. As a result, import price reached the peak level of $X per ton. From 2015 to 2021, the average import prices failed to regain momentum.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Japan ($X per ton), while the price for Thailand ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Japan (+43.1%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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