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April 21, 2025
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7 minute read
Rare earth export restrictions, price spikes and the risk of demand destruction
From January 2009 through August 2011, the monthly average price of dysprosium (Dy) oxide (China FOB) increased 26-fold, from $91/kg to $2,377/kg.
This price spike is often attributed to China halting rare earth exports to Japan amidst a territorial dispute but in reality the rally had started months prior and was accelerated by a multitude of different forces; namely, falling Chinese export quotas, rising Chinese export duties, China’s weaponization of rare earth exports, a clampdown on illegal production in the nation, and resultant speculation and panic buying by end users.
