China's Rare Earth Exports Slump in May as Magnet Sales Curbed
China's exports of rare earth products — including powerful magnets now at the heart of tensions with the US — slumped to a fresh five-year low in May as Beijing's export curbs choked flows.
The data for last month shows the extent to which export controls in place since early April had curbed shipments, before a US-China meeting to resolve the restrictions. A shortage of vital magnets has threatened industries including car making from the US to Europe and India.
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China's Rare Earth Exports Slump in May as Magnet Sales Curbed
(Bloomberg) — China's exports of rare earth products — including powerful magnets now at the heart of tensions with the US — slumped to a fresh five-year low in May as Beijing's export curbs choked flows. Security Concerns Hit Some of the World's 'Most Livable Cities' How E-Scooters Conquered (Most of) Europe As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads The data for last month shows the extent to which export controls in place since early April had curbed shipments, before a US-China meeting to resolve the restrictions. A shortage of vital magnets has threatened industries including car making from the US to Europe and India. May's export volume of rare earth products fell by 61% from a year earlier to 2,117 tons, the lowest level since February 2020, according to calculations by Bloomberg News based on Chinese customs data. The products category — distinct from minerals and metals — is typically dominated by magnets. Exports had already fallen sharply in April. China produces about 90% of the world's so-called permanent rare earth magnets, and has used its grip on supplies to fight a burgeoning trade war with the US. Export controls launched on April 4 covered not just seven individual rare earths, but also magnets that contain even tiny amounts of them. Governments and companies in the US are watching how flows change in June. Following a meeting between American and Chinese negotiators in London earlier this month, US President Donald Trump said 'FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA.' Specific data on exports of magnets is due to be published by Chinese customs on Friday. In the first quarter of 2025, ahead of export curbs, magnets accounted for nearly 90% of the rare earth products group. Read more: The latest on Trump's tariffs Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Mark Cuban Has Done Sports, Reality TV and Now Health Care. Why Not US President? How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software ©2025 Bloomberg L.P. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy
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FTSE 100 LIVE: Stocks rise as UK inflation slows ahead of Bank of England decision
The FTSE 100 (^FTSE) and European stocks climbed higher on Wednesday as UK inflation slowed to 3.4% in May amid an easing of transport costs. This was down from 3.5% in April, according to the Office for National Statistics, in line with City economists' forecasts but well above the central bank's 2% target. Transport prices rose by 0.7% in the 12 months to May, down from 3.3% in the year to April, reflecting drops in air fares (which jumped in April) and petrol prices, together with the correction of an error in vehicle excise duty prices. The largest downward contribution came from transport while upward momentum came from food, and furniture and household goods, the ONS said. Core inflation, which excludes food and energy, softened, falling from 3.8% to 3.5% — again matching forecasts. Money Markets still expect the Bank of England to hold interest rates on Thursday, with traders pencilling in a 10% chance of a cut. A reduction in August seems more likely and the City is still expecting two more quarter-point cuts to the base rate by the end of the year, from its current 4.25%. London's benchmark index (^FTSE) was 0.2% higher in early trade Germany's DAX (^GDAXI) rose 0.2% and the CAC (^FCHI) in Paris also headed 0.2% into the green The pan-European STOXX 600 (^STOXX) was treading water after opening Wall Street is set for a positive start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the green. The pound was 0.2% higher against the US dollar (GBPUSD=X) at 1.3466 Follow along for live updates throughout the day: Rachel Reeves has said she knows there is 'more to do' as the inflation figure came in well above the Bank of England's 2% target. The chancellor said on Wednesday: Meanwhile, the shadow chancellor Sir Mel Stride, from the opposition Conservative party, said: Transport costs eased last month, pushing overall inflation lower. This was the largest downward contribution partially offsetting upward contributions from food, and furniture and household goods. The average price of petrol dropped by 2.1p between April and May to 132.4p per litre, compared with 148.8p in May 2024. Diesel prices fell 2.6p to 139.1p per litre, down from 156.3p a year earlier. Food and non-alcoholic drink prices picked up. Inflation in this category rose to 4.4% in the 12 months to May, up from 3.4% in April — the highest rate since February 2024, when it stood at 5%. The ONS said that the prices of chocolate, confectionery and ice cream rose between April and May but fell between the same months a year ago. It also said that meat prices rose by more this year than during the same period of 2024. ONS acting chief economist Richard Heys said: UK inflation fell to 3.4% in May, in line with economists' expectations, offering fresh evidence that price pressures may be starting to ease as the Bank of England prepares to announce its latest interest rate decision. The drop comes after inflation hit a 14-month high of 3.5% in April, driven by a wave of household bill increases. However, the Office for National Statistics (ONS) said an error in vehicle tax data meant April's inflation rate should have been 3.4%. Despite the mistake, the ONS has not issued an official revision. Core inflation, which excludes food and energy, also softened, falling from 3.8% to 3.5% — again matching forecasts. The statistics office said transport prices rose by 0.7% in the 12 months to May, down from 3.3% in the 12 months to April, reflecting drops in air fares (which jumped in April) and petrol prices, together with the correction of the error in vehicle excise duty prices. The latter was overstated in April and the series corrected from May. As is standard practice, the April figure has not been revised, the ONS said. Asian equity markets were mixed overnight, with the Hang Seng index (^HSI) leading the losses in the region, declining 1.1%. The Shanghai Composite ( was treading water while the Nikkei (^N225) defied the regional trend, advancing 0.9% to a four-month high, supported by a weaker yen. It came as Japan's exports in May fell 1.7% year-on-year, marking the most significant decline since September 2024, as the nation continues to face trade uncertainties. This drop was less severe than the 3.7% fall anticipated by Bloomberg, but represents a reversal from the 2.0% increase recorded in April. Japan's trade deficit swelled to -637.6bn yen in May, which is smaller than the expected -896.5bn yen, compared to a revised deficit of -115.6bn yen the previous month. Meanwhile the Kospi (^KS11) also made gains, up 0.7% on the day. Across the pond on Wall Street, the US dollar held onto most of its gains against its peers but stocks stayed under pressure. The Dow Jones (^DJI) finished 0.7% lower, at 42,215.80, and the S&P 500 (^GSPC) fell 0.8% to 5,982.72. Apart from energy, all the major sector groups lost ground, including the Magnificent 7 (-1.06%). The tech-heavy Nasdaq (^IXIC) shed 0.9%, closing at 19,521.09. One of the negative drivers on Tuesday was underwhelming US data across the board. Retail sales fell 0.9% in May, compared to the 0.6% fall expected, which was a second consecutive monthly decline. Industrial production also fell 0.2% in May (versus an expected no change). However, some of the core measures fared better, and the retail control group was up 0.4%, compared to the 0.3% expected. In the bond market, the yield on benchmark 10-year US Treasury notes dropped to 4.389% last night, from 4.454% late on Monday. Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy. For the day ahead, the main highlight will be the Federal Reserve's latest policy decision, along with chair Powell's subsequent press conference. Data releases include US housing starts and building permits for May, the weekly initial jobless claims, and the UK CPI print for May. ECB speakers include Elderson, Escriva, Villeroy, Knot, Panetta, Nagel, Centeno and Lane. Here's a snapshot of what's on the agenda: G-7 leaders meeting day 2 7am: UK inflation data 9.30am: UK house prices and rents 10am: Eurozone inflation (final) for May 12pm: US MBA Mortgage Applications 1.30pm: US Housing starts for May and initial jobless claims 7pm: US Federal Reserve interest rate decision (no change expected)Rachel Reeves has said she knows there is 'more to do' as the inflation figure came in well above the Bank of England's 2% target. The chancellor said on Wednesday: Meanwhile, the shadow chancellor Sir Mel Stride, from the opposition Conservative party, said: Transport costs eased last month, pushing overall inflation lower. This was the largest downward contribution partially offsetting upward contributions from food, and furniture and household goods. The average price of petrol dropped by 2.1p between April and May to 132.4p per litre, compared with 148.8p in May 2024. Diesel prices fell 2.6p to 139.1p per litre, down from 156.3p a year earlier. Food and non-alcoholic drink prices picked up. Inflation in this category rose to 4.4% in the 12 months to May, up from 3.4% in April — the highest rate since February 2024, when it stood at 5%. The ONS said that the prices of chocolate, confectionery and ice cream rose between April and May but fell between the same months a year ago. It also said that meat prices rose by more this year than during the same period of 2024. ONS acting chief economist Richard Heys said: UK inflation fell to 3.4% in May, in line with economists' expectations, offering fresh evidence that price pressures may be starting to ease as the Bank of England prepares to announce its latest interest rate decision. The drop comes after inflation hit a 14-month high of 3.5% in April, driven by a wave of household bill increases. However, the Office for National Statistics (ONS) said an error in vehicle tax data meant April's inflation rate should have been 3.4%. Despite the mistake, the ONS has not issued an official revision. Core inflation, which excludes food and energy, also softened, falling from 3.8% to 3.5% — again matching forecasts. The statistics office said transport prices rose by 0.7% in the 12 months to May, down from 3.3% in the 12 months to April, reflecting drops in air fares (which jumped in April) and petrol prices, together with the correction of the error in vehicle excise duty prices. The latter was overstated in April and the series corrected from May. As is standard practice, the April figure has not been revised, the ONS said. Asian equity markets were mixed overnight, with the Hang Seng index (^HSI) leading the losses in the region, declining 1.1%. The Shanghai Composite ( was treading water while the Nikkei (^N225) defied the regional trend, advancing 0.9% to a four-month high, supported by a weaker yen. It came as Japan's exports in May fell 1.7% year-on-year, marking the most significant decline since September 2024, as the nation continues to face trade uncertainties. This drop was less severe than the 3.7% fall anticipated by Bloomberg, but represents a reversal from the 2.0% increase recorded in April. Japan's trade deficit swelled to -637.6bn yen in May, which is smaller than the expected -896.5bn yen, compared to a revised deficit of -115.6bn yen the previous month. Meanwhile the Kospi (^KS11) also made gains, up 0.7% on the day. Across the pond on Wall Street, the US dollar held onto most of its gains against its peers but stocks stayed under pressure. The Dow Jones (^DJI) finished 0.7% lower, at 42,215.80, and the S&P 500 (^GSPC) fell 0.8% to 5,982.72. Apart from energy, all the major sector groups lost ground, including the Magnificent 7 (-1.06%). The tech-heavy Nasdaq (^IXIC) shed 0.9%, closing at 19,521.09. One of the negative drivers on Tuesday was underwhelming US data across the board. Retail sales fell 0.9% in May, compared to the 0.6% fall expected, which was a second consecutive monthly decline. Industrial production also fell 0.2% in May (versus an expected no change). However, some of the core measures fared better, and the retail control group was up 0.4%, compared to the 0.3% expected. In the bond market, the yield on benchmark 10-year US Treasury notes dropped to 4.389% last night, from 4.454% late on Monday. Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy. For the day ahead, the main highlight will be the Federal Reserve's latest policy decision, along with chair Powell's subsequent press conference. Data releases include US housing starts and building permits for May, the weekly initial jobless claims, and the UK CPI print for May. ECB speakers include Elderson, Escriva, Villeroy, Knot, Panetta, Nagel, Centeno and Lane. Here's a snapshot of what's on the agenda: G-7 leaders meeting day 2 7am: UK inflation data 9.30am: UK house prices and rents 10am: Eurozone inflation (final) for May 12pm: US MBA Mortgage Applications 1.30pm: US Housing starts for May and initial jobless claims 7pm: US Federal Reserve interest rate decision (no change expected)
