Rare earth mmi (Monthly Metal Index) It was held side by side from January to February, and rose just 2.88%. Rare earth prices have been proven to be more volatile than other metal products such as steel for the past year. It appears that the rare earth market will now be able to witness more volatility in 2025.
President Trump recently imposed a 10% tariff on all Chinese products, including rare earths. Meanwhile, the Kachin Independent Army (KIA) has extensive control over Myanmar’s precious rare earth mines, severely restricting the Burmese government’s control over the sector. Get weekly updates on these rare earth shifts MetalMiner’s weekly newsletter.
Trump’s promised tariffs – time to worry?
In early February, President Trump enacted a 10% tariff on all Chinese imports, strengthening global trade tensions and raising concerns about the potential impact on industries that rely on rare earth elements. China currently supplies between 85% and 95% of the global demand for rare earth elements, which has a major impact on global supply and pricing.
As reported by ReutersChina has announced export controls on key minerals, including rare earths, in retaliation against US tariffs. This indicates that the country is ready to capitalize on its dominant position in the sector.
Potential impact on the global rare earth market
These tariffs have led to concerns about supply chain disruptions and increased costs for industries that rely on rare earth elements. These developments could potentially face challenges for manufacturers in sectors such as electronics, automobiles and defense to ensure the materials they need. Reuters It says this could lead to delays in production and increased prices for consumers.
Panic evaluation
Some analysts argue that the level of concern may be disproportionate to the actual threat. They argue that the global market has previously navigated similar challenges.
For example, companies that have adapted during past trade disputes by diversifying their supply chains and investing in rare earth alternative sources. Furthermore, current export restrictions by China are targeted, and there is room for negotiation, suggesting a complete cutoff of rare earths. There’s no possibility of supplies.
Various mitigation strategies
There are several strategies that businesses can use to mitigate the impact of tariffs and the potential supply shortages. One way to reduce dependence on a single supplier and increase resilience to geopolitical disruption is to diversify the supply of rare earth elements across multiple sources.
Another way to balance the supply of rare earths around the world is to invest in exploration and development in places like Australia. States can also reduce their reliance on key sources by supporting technologies that focus on producing alternative materials or recycling rare earth elements from commodities that have reached its end. Their useful life.
The disaster at Myanmar Mine will continue until 2025
Over the past year, Myanmar’s rare earth mining sector has faced major upheavals due to the escalation of conflict involving armed ethnic groups. This is due to the movement of the Kachin Independence Forces, an ethnic rebel group that seized control of the main mining hubs in Kachin province. Most notably, those found in Panwa and Chipwe, key suppliers of rare earth oxides to China.
Historically, these mining areas were managed by the new democratic Army Kachin, a militia allied with Myanmar’s military government. However, the recent Kia attack has changed this dynamic. Analysts may intend to reopen rare earth operations, but negotiations with China will delay a rapid reopening and potentially close global supply. Price rise.
Looking ahead
This topic will undoubtedly remain complicated in the future. With Kia’s management of key mining regions, the global supply chain of rare earths remains unpredictable. Consultations between Kia and Chinese companies may cause mining operations to resume, but there is no clear timetable. Plus, there is always a possibility of more conflict.
Meanwhile, the international community should be closely watching these advances as it has important impacts on industries around the world.
Jennifer Curry
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