Rare earth producers slide after expected delay in Chinese export restrictions
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The news: Rare earths producers were among the biggest losers in afternoon trade after US Treasury Secretary Scott Bessent said he expects China to delay its strict new rare earths export licensing regime ahead of a potential US-China trade deal.
The numbers: At 1:30pm AEDT, shares in Lynas Rare Earths had slipped 12.6% to $16.06 while shares in Iluka Resources fell 6.2% to $6.74.
The context: Arafura Rare Earths shares entered a trading halt on Tuesday morning ahead of a proposed capital raise.
The US and China reached a framework for a trade deal following trade talks over the weekend.
Following the discussions, Bessent said he expects a year-long delay in China’s introduction of strict new rare earths export controls as the policy is reassessed. He also said that Trump’s threat to impose an additional 100% tariff rate on Chinese exports was “effectively off the table.”
On 9 October, China’s Ministry of Commerce announced that permits would be required to export technologies that contained even trace amounts of Chinese-origin rare earths as well as related magnet manufacturing technologies. The restrictions were initially due to come into effect at the start of December. US-listed rare earth miners plunged overnight.
