China's Rare Earth Exports To US Rise In June — But Retail Traders Feel It Doesn’t Change Things Much For American Miners

China’s exports of rare earth magnets to the U.S. jumped nearly seven times in June compared to the previous month as trade tensions between the two countries eased after a series of talks.

According to a Reuters report, citing data from the General Administration of Customs, exports of rare earth magnets jumped to 353 metric tons, from a paltry 46 tons in May. However, exports were still down 52% compared to the same period a year earlier.

Beijing had put several rare earth materials, used in electric vehicles and missile-guidance systems, on an export restrictions list and asked Chinese businesses to get a government permit before shipping their products abroad after U.S. President Donald Trump raised tariffs on Chinese goods to 145%. China dominates the rare earth magnet supply by processing around 90% of all materials.

Western companies, from automakers to consumer electronics firms, began to feel the pressure soon and began curtailing capacity. Beijing pledged to start exporting rare earths after the two sides struck an initial agreement in Geneva in May.

However, Western businesses continued to complain that Chinese authorities were slow to grant export permits following the deals amid Beijing’s concerns over shipments of AI chips. However, a June pact paved the way for Nvidia to begin export of H20 chips to China, helping alleviate China’s concerns.

Overall, China shipped 3,188 tons of rare earth permanent magnets last month, with Germany being its top destination in a relief to automakers. However, total exports were still down 38% compared to the same month in the previous year.

Retail sentiment on Stocktwits about the U.S. rare earths firm MP Materials was still in ‘extremely bullish’ territory late on Sunday, while that of deep-sea miner The Metals Company (considered a Trump trade play) was ‘bullish.’

MP’s stock has gained over 74% in the past month following the Pentagon's agreement to take a 15% stake in the company, as well as a $500 million supply agreement with Apple. Most retail traders on Stocktwits believed that the resumption of exports would not fundamentally change anything for U.S. producers.

“They (China) have already threatened the U.S. and the rest of the world with restrictions, and the only way to remove that leverage is to go full speed ahead with domestic production,” one user said.

Year to date, MP stock has nearly quadrupled in value while TMC has surged by a whopping 570%.

Also See: Japan's Ruling Party Loses Grip As Trump Tariff Deadline Looms: What Happens Next?

For updates and corrections, email newsroom[at]stocktwits[dot]com.