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According to Nikkei Asia, rare earth metal prices remain at record highs due to sudden scarcity caused by China’s export restrictions.
Specifically, dysprosium and terbium, used in high-performance magnets, tripled in price in May compared to the previous month. UK research firm Argus Media, which sets the standard for rare earth prices outside of China, noted that dysprosium currently stands at $750 per kg, a 12% decrease from the previous month, while terbium is at $2,850 per kg, a 5% drop.
However, both have doubled in price since April and are nearing their highest levels since May 2015. Yttrium, used in defense applications, surged 20% from May to $45 per kg as of June 5, a sixfold increase over the past two months.
In April, Beijing announced export restrictions on seven types of rare earth elements, including dysprosium and terbium. China, which accounts for the majority of global rare earth production, imposed these restrictions after US President Donald Trump introduced retaliatory tariffs targeting Beijing and several other trading partners.
An Argus Media representative attributed the slight price dip this month to hopes of resumed exports as Washington and Beijing ease bilateral tariffs. However, the June 5 phone call between Trump and Chinese President Xi Jinping appeared to yield no concrete results.
Rare earths enhance the performance of other materials when added in small quantities. They are essential for advanced products such as electric vehicles, wind turbine generators, and aircraft. The sudden price surge has disrupted operations for some companies.
Proterial (formerly Hitachi Metals), a manufacturer of rare earth magnets, stated, “While production operations are not currently affected, customers are concerned about the fact that export licenses have not yet been granted for rare earth materials.”
With prices surging outside of China, Japanese metal material manufacturers stated they may temporarily request that customers shoulder some of the costs to maintain stable supply. Not just the US, but officials and business leaders from several other countries, including India, Japan, and Europe, have recently complained about China’s rare earth export restrictions. They argue that the lack of access to rare earths threatens their domestic key industries.
