China's rare earth magnet exports plunge 53% in May amid export curbs

China’s exports of rare earth magnets dropped sharply in May, plunging 52.9% from April to just 1,238 metric tons, their lowest monthly level since February 2020. The drop comes amid tightened export controls and growing customs scrutiny.

The decline marks the second consecutive month of halved shipments and represents a 74% year-on-year decrease, according to data released Friday by the General Administration of Customs.

China—responsible for more than 90% of global rare earth magnet production—began restricting exports of seven medium-to-heavy rare earth products and select magnets in April, impacting global supply chains in sectors ranging from automotive and aerospace to semiconductors and defence.

While Beijing recently pledged to expedite license approvals following a trade détente with the U.S., insiders say Chinese customs have grown increasingly cautious, particularly as many different rare earth magnets are grouped under a single customs code, complicating enforcement.

Companies including JL MAG Rare-Earth and Innuovo Technology have confirmed receiving limited export licenses, though broader approval remains elusive.

From January to May, total rare earth magnet exports fell 14.5% year-on-year to 19,132 tons, the lowest for the five-month period since 2021.

Shipments of lower-performance magnets, used in appliances and consumer electronics, are reportedly being held up due to regulatory confusion, adding further strain on already disrupted supply chains.

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