China's Total Rare Earth Exports Recover Ahead of US Trade Talks
Chinese exports of rare earths, a group of 17 minerals at the center of a trade dispute with Washington, recovered to 5,865 tons in May, according to customs data on Monday.
That's an improvement on the 4,785 tons shipped in April, although it's still below last year's figure of 6,217 tons. Overseas sales so far this year have risen 2.3% to 24,827 tons. The data doesn't cover rare earth products, which include high-value magnets for electric motors and hard-disk drives.
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Yahoo
22 minutes ago
- Yahoo
Auto companies 'in full panic' over rare-earths bottleneck
By Christina Amann, Nick Carey and Kalea Hall BERLIN/LONDON/DETROIT (Reuters) -Frank Eckard, CEO of a German magnet maker, has been fielding a flood of calls in recent weeks. Exasperated automakers and parts suppliers have been desperate to find alternative sources of magnets, which are in short supply due to Chinese export curbs. Some told Eckard their factories could be idled by mid-July without backup magnet supplies. "The whole car industry is in full panic," said Eckard, CEO of Magnosphere, based in Troisdorf, Germany. "They are willing to pay any price." Car executives have once again been driven into their war rooms, concerned that China's tight export controls on rare-earth magnets – crucially needed to make cars – could cripple production. U.S. President Donald Trump said Friday that Chinese President Xi Jinping agreed to let rare earths minerals and magnets flow to the United States. A U.S. trade team is scheduled to meet Chinese counterparts for talks in London on Monday. The industry worries that the rare-earths situation could cascade into the third massive supply chain shock in five years. A semiconductor shortage wiped away millions of cars from automakers' production plans, from roughly 2021 to 2023. Before that, the coronavirus pandemic in 2020 shut factories for weeks. Those crises prompted the industry to fortify supply chain strategies. Executives have prioritized backup supplies for key components and reexamined the use of just-in-time inventories, which save money but can leave them without stockpiles when a crisis unfurls. Judging from Eckard's inbound calls, though, "nobody has learned from the past," he said. This time, as the rare-earths bottleneck tightens, the industry has few good options, given the extent to which China dominates the market. The fate of automakers' assembly lines has been left to a small team of Chinese bureaucrats as it reviews hundreds of applications for export permits. Several European auto-supplier plants have already shut down, with more outages coming, said the region's auto supplier association, CLEPA. "Sooner or later, this will confront everyone," said CLEPA Secretary-General Benjamin Krieger. Cars today use rare-earths-based motors in dozens of components – side mirrors, stereo speakers, oil pumps, windshield wipers, and sensors for fuel leakage and braking sensors. China controls up to 70% of global rare-earths mining, 85% of refining capacity and about 90% of rare-earths metal alloy and magnet production, consultancy AlixPartners said. The average electric vehicle uses about .5 kg (just over 1 pound) of rare earths elements, and a fossil-fuel car uses just half that, according to the International Energy Agency. China has clamped down before, including in a 2010 dispute with Japan, during which it curbed rare-earths exports. Japan had to find alternative suppliers, and by 2018, China accounted for only 58% of its rare earth imports. "China has had a rare-earth card to play whenever they wanted to," said Mark Smith, CEO of mining company NioCorp, which is developing a rare-earth project in Nebraska scheduled to start production within three years. Across the industry, automakers have been trying to wean off China for rare-earth magnets, or even develop magnets that do not need those elements. But most efforts are years away from the scale needed. "It's really about identifying ... and finding alternative solutions" outside China, Joseph Palmieri, head of supply chain management at supplier Aptiv, said at a conference in Detroit last week. Automakers including General Motors and BMW and major suppliers such as ZF and BorgWarner are working on motors with low-to-zero rare-earth content, but few have managed to scale production enough to cut costs. The EU has launched initiatives including the Critical Raw Materials Act to boost European rare-earth sources. But it has not moved fast enough, said Noah Barkin, a senior advisor at Rhodium Group, a China-focused U.S. think tank. Even players that have developed marketable products struggle to compete with Chinese producers on price. David Bender, co-head of German metal specialist Heraeus' magnet recycling business, said it is only operating at 1% capacity and will have to close next year if sales do not increase. Minneapolis-based Niron has developed rare-earth free magnets and has raised more than $250 million from investors including GM, Stellantis and auto supplier Magna. "We've seen a step change in interest from investors and customers" since China's export controls took effect, CEO Jonathan Rowntree said. It is planning a $1 billion plant scheduled to start production in 2029. England-based Warwick Acoustics has developed rare-earth-free speakers expected to appear in a luxury car later this year. CEO Mike Grant said the company has been in talks with another dozen automakers, although the speakers are not expected to be available in mainstream models for about five years. As auto companies scout longer-term solutions, they are left scrambling to avert imminent factory shutdowns. Automakers must figure out which of their suppliers – and smaller ones a few links up the supply chain – need export permits. Mercedes-Benz, for example, is talking to suppliers about building rare-earth stockpiles. Analysts said the constraints could force automakers to make cars without certain parts and park them until they become available, as GM and others did during the semiconductor crisis. Automakers' reliance on China does not end with rare earth elements. A 2024 European Commission report said China controls more than 50% of global supply of 19 key raw materials, including manganese, graphite and aluminum. Andy Leyland, co-founder of supply chain specialist SC Insights, said any of those elements could be used as leverage by China. "This just is a warning shot," he said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
24 minutes ago
- Bloomberg
Chinese Stocks in Hong Kong Head for Bull Market Before US Talks
Chinese shares trading in Hong Kong were on course to enter a bull market by Monday's close, as planned talks between the US and China fuel a wider sense of relief among investors. The Hang Seng China Enterprises Index rose as much as 1.7%, putting it on track to close more than 20% higher than its low on April 7. Technology and e-commerce shares led gains, helping the gauge outperform a 0.9% bounce in the MSCI Asia Pacific Index.
Yahoo
an hour ago
- Yahoo
Mirae Asset Launches Global X MSCI Asia Pacific ex Japan ETF (3064/9064) - Offering Efficient Exposure to Asia Pacific Growth
HONG KONG, June 9, 2025 /PRNewswire/ -- Mirae Asset Global Investments (Hong Kong) Limited ("Mirae Asset" or the "Company") announced the launch of the Global X MSCI Asia Pacific ex Japan ETF (3064/9064), providing investors with targeted access to large- and mid-cap equities across developed and emerging Asia Pacific markets, excluding Japan. The ETF seeks to track the MSCI AC Asia Pacific ex Japan Index, offering diversified exposure to Asia Pacific economies (excluding Japan), encompassing both developed and emerging markets while investing in various sectors, including cyclical and structural growth industries. The fund enables investors to capitalize on the dynamic growth of Asia's markets, from emerging powerhouses like China, India and South Korea to developed innovators such as Australia, all while benefiting from attractive valuations compared to developed markets such as the US. Mr. Wanyoun CHO, Chief Executive Officer of Mirae Asset Global Investments (Hong Kong) Limited, said: " Asia Pacific remains a cornerstone of global growth, and this ETF offers institutional investors a streamlined way to capture that potential. With a disciplined replication strategy and a focus on cost efficiency, we're providing a robust tool for long-term allocations to the region's leading equities." The Global X MSCI Asia Pacific ex Japan ETF (3064/9064) features a management fee as low as 0.18%* and is part of Global X's growing suite of thematic and regional investment solutions, designed to address the evolving needs of investors. *As the Fund is newly set up, this figure is an estimate only and represents the sum of the estimated ongoing charges over a 12-month period, expressed as a percentage of the estimated average Net Asset Value of the Listed Class of Shares over the same period. It may be different upon actual operation of the Fund and may vary from year to year. As the Fund adopts a single management fee structure, the estimated ongoing charges of the Sub-Fund will be equal to the amount of the single management fee, which is capped at 0.18% of the average Net Asset Value of the Listed Class of Shares of the Sub-Fund. Any ongoing expenses exceeding 0.18% of the average Net Asset Value of the Listed Class of Shares of the Fund will be borne by the Manager and will not be charged to the Fund. Please refer to the Product Key Facts and the Prospectus for further details: ttps:// About Mirae Asset Global Investments Group Mirae Asset Global Investments Group (the "group") is an asset management organization with over US$256 billion in assets under management as of December 31, 2024[1]. The organization provides a diverse range of investment products including mutual funds, exchange traded funds ("ETFs"), and alternatives. Operating out of 25 offices worldwide, the group has a global team of more than 1,000 employees, including more than 280 investment professionals. The group's global ETF platform features a line-up of 629 ETFs that offer investors high quality and cost-efficient exposure to newly emerging investment themes and disruptive technologies in the global markets.[2] The group's ETFs have combined assets under management of US$137 billion and are listed in Australia, Canada, Colombia, Hong Kong SAR, India, Japan, Korea, Vietnam, the EU, and the United States.[3] About Global X ETFs Global X ETFs was founded in 2008. For more than a decade, our mission has been empowering investors with unexplored and intelligent solutions. Our product line-up features 400 ETF strategies and over $90 billion in assets under management.[4] While we are distinguished for our Thematic Growth, Income, and International Access ETFs, we also offer Core, Commodity, and Alpha funds to suit a wide range of investment objectives. Global X is a member of Mirae Asset Financial Group, a global leader in financial services, has a presence in 19 global markets and the group's managed assets exceed US$613.8 billion in assets under management worldwide.[5] Mirae Asset Global Investments Hong Kong: Global X ETFs Hong Kong: Important Information Investors should not base investment decisions on this website alone. Please refer to the Prospectus for details including product features and the risk factors. Investment involves risks. Past performance is not indicative of future performance. There is no guarantee of the repayment of the principal. Investors should note: Global X MSCI Asia Pacific ex Japan ETF (the "Fund")'s investment objective is to provide investment results that, before fees and expenses, closely correspond to the performance of the MSCI AC Asia Pacific ex Japan Index (the "Index"). The Fund is subject to concentration risk as a result of tracking the performance of a single geographical region or country (Asia Pacific region excluding Japan). The Fund may likely be more volatile than a broad-based fund, such as a global equity fund, as it is more susceptible to fluctuations in value of the Index resulting from adverse conditions in the Asia Pacific region excluding Japan. The Fund invests in certain countries or regions in Asia Pacific region (excluding Japan) which may be considered as emerging markets. This may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility. Listed companies on the ChiNext market and/or STAR Board are usually of emerging nature with smaller operating scale. In particular, listed companies on ChiNext market and/or STAR Board are subject to higher fluctuation in stock prices and liquidity risks, Over-valuation risk, Differences in regulation, Delisting risk, and Concentration risk. The Fund may invest in mid-capitalisation companies, which may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general. The Fund may as a result suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund's ability in meeting delivery or payment obligations from redemption requests. As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund. There are risks and uncertainties associated with the current Mainland China tax laws, regulations and practice in respect of capital gains realized via Stock Connect on the Fund's investments in Mainland China (which may have retrospective effect). Any increased tax liabilities on the Fund may adversely affect the Fund's value. The trading price of the Shares on the SEHK is driven by market factors such as the demand and supply of the Shares. Therefore, the Shares may trade at a substantial premium or discount to the Fund's Net Asset Value. Payments of distributions out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor's original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction in the Net Asset Value per Share of the Fund and will reduce the capital available for future investment. Disclaimer This document is for Hong Kong investors only. This document is provided for information and illustrative purposes and is intended for your use only. It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated services. Certain of the statements contained in this document are statements of future expectations and other forward-looking statements. Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements. Investment involves risk. Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Funds will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Funds and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment. Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (Hong Kong) Limited ("MAGIHK") are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document. Products, services and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries and/or distributors of MAGIHK as stipulated by local laws and regulations. This document is not directed to any person in any jurisdiction where the availability of this document is prohibited. Persons in respect of whom such prohibitions apply or persons other than those specified above must not access this document. It is your responsibility to be aware of and to observe all applicable laws and regulations of any relevant jurisdiction. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction. This document is issued by MAGIHK (Licensed by the Securities and Futures Commission for Types 1, 4 and 9 regulated activities under the Securities and Futures Ordinance). This document has not been reviewed by the Securities and Futures Commission or the applicable regulator in the jurisdiction in which this article is posted and no part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission of MAGIHK. Copyright © 2025 Mirae Asset Global Investments. All rights reserved. [1] Source: Mirae Asset Global Investments, December 31, 2024. [2] Source: Mirae Asset Global Investments, December 31, 2024. [3] Source: Mirae Asset Global Investments, December 31, 2024. [4] Source: Mirae Asset Global Investments, December 31, 2024. [5] Source: Mirae Asset Financial Group, December 31, 2024. View original content to download multimedia: SOURCE Mirae Asset Global Investments (Hong Kong) Limited Sign in to access your portfolio
