Latest News

Sources say that Chinese customs caution has slowed some rare earth magnets exports.

Sources say that Chinese customs caution has slowed some rare earth magnets exports.

Three sources claim that Chinese customs have been holding up shipments of rare earth magnets with lower performance used in consumer electronics and appliances because they are confused about how to apply Beijing’s export restrictions.

Rare earth magnets are a mix of elements that come from a family of 17 elements. The performance is determined by the mixture. The high-performance magnets are used in cars, windmills, and fighter jets while the weaker types are used for consumer electronics and home appliances.

China's Customs Website only lists one code for rare-earth magnets, regardless of their chemistry.

Beijing excluded certain low-performance rare earths from the export restrictions it imposed on several high-performance types in April.

Two sources with knowledge of the situation said that customs officials had barred at the very least two shipments due to the fact they shared the same code.

Sources who spoke under condition of anonymity said that the shipments still hadn't left China, even though the exporters had provided documents proving there weren't any restrictions on the type of magnets involved.

China's Commerce Ministry and Customs did not reply to a request for comment.

Bosch, a European appliance and auto parts maker, said that bottlenecks were affecting the supply of rare Earths which are key to both electric motors as well as consumer goods. Suppliers had to provide a great deal of information in order to obtain export licenses.

The process of applying for an export license for rare earths is complicated and time-consuming. This is partly because the suppliers need to gather and provide lots of information, according to a Bosch spokesperson.

Electrolux and Smeg officials both said they weren't affected by delays.

China's permanent magnet exports dropped 51% in April to 2,626 tonnes, the first month that data was available after the restrictions. In the first quarter of this year, exports totaled 15,267 tonnes. (Reporting and editing by Clarence Fernandez; Victoria Waldersee, Berlin)

(source: Reuters)