Beijing, Australia, and Southeast Asia: Rare Earths Amid Trade Disputes

Beijing's Influence on Rare Earth Prices

As Beijing navigates trade disputes with the United States and the EU, rare earth prices are poised to stabilize following disruptions in Myanmar. Analysts indicate that turmoil in Myanmar could limit supplies, leading to price hikes announced by China Northern Rare Earth (Group) High-Tech.

Myanmar Turmoil and Supply Concerns

The armed conflict in Myanmar, particularly the takeover of mining centers, has severely impacted rare earth output. According to customs data, China imported 31,000 tonnes of rare earth oxide from Myanmar for processing earlier this year. With the local mining operations effectively halted, this situation creates significant uncertainty.

Global Implications of Trade Disputes

Analysts from ING, including Lynn Song, propose that Beijing may leverage its dominance—controlling 90% of the world's rare earth processing capacities—as a response to escalating trade tensions. Should the US pursue aggressive tariff actions post-election, rare earth elements could be used as a retaliatory tactic.

International Pursuits for Rare Earth Resources

Countries like Australia, Laos, and Vietnam are intensifying efforts to secure their own rare earth resources, thereby reducing dependence on China. With the importance of rare earth elements in electronic and defense technologies, the race for these resources underscores a pivotal shift in global economic strategies.

Conclusion: The Future of Rare Earths

The ongoing trade disputes and resource challenges highlight the strategic significance of rare earth elements in international relations. As the situation unfolds, the global market's reliance on these resources will likely continue to shape economic policies.