China’s exports of rare-earth magnets and materials to Japan fell sharply in
March, raising concerns over potential supply constraints amid worsening
bilateral relations. Shipments of magnets dropped 17% month-on-month to about
184 tons, a nine-month low, while exports of intermediate materials such as
oxides plunged nearly 90%, according to Chinese customs data. Analysts said
tighter export controls on dual-use materials may be starting to affect flows,
following heightened tensions after remarks by Japanese Prime Minister Sanae
Takaichi on Taiwan. The Institute of Energy Economics, Japan noted more data is
needed to confirm the trend.
