China's exports of rare earths hit a six-month high in July, marking the second month of growth after the Chinese government pledged to speed up the process of issuing rare earth export permits. According to the South China Morning Post,the European Union is the largest buyer.
China exported 5,577 tons of rare earth magnets in July, up 75% from June. The EU remained the largest buyer with 2,140 tons (38% of total exports), up 57% from the previous month. In July, Germany became the world's largest importer of Chinese rare earth magnets, purchasing 1,116 tons, up 46% from June.
The United States came in second with 619 tons purchased last month (11% of total exports), up 76% from June.
China, with its significant reserves of rare earth elements and processing capacity, is the world's largest producer and exporter of permanent rare earth magnets. According to a report published early last month by New York-based research firm Strategy Risks, China produces about 70% of the world's rare earth reserves and has more than 90% of the world's capacity to separate and process the most valuable heavy rare earth elements.
In April, the Chinese government, amid escalating trade disputes with the United States, added several rare earth elements to the list of goods subject to export controls. Then, shipments of rare earth magnets to foreign countries fell sharply in April and May. After consultations between the two countries' trade delegations, shipments of these products to American companies were resumed.