Rare earth magnetic materials producer JL Mag Rare-Earth Co. Ltd. (6680.HK; 300748.SZ) disclosed on Wednesday it has obtained export permits covering the U.S., Europe and Southeast Asia after China imposed controls in April on the export of medium and heavy rare earths.
The announcement lifted JL Mag’s Shenzhen-listed A shares by 7.89% to 24.07 yuan and its Hong Kong-listed shares by 1.75% to HK$19.70 on Wednesday.
JL Mag said its exports totaled 312 million yuan ($43 million) in the first quarter, of which the U.S. accounted for 122 million, or 6.94% of its overall revenue. The company does not engage in military-related business.
According to Caixin, after China imposed export controls on seven categories of medium and heavy rare earth elements in April, the country’s exports of rare earth permanent magnet iron that month fell by half to 2,626.7 tons month-on-month, with the top five destinations as Germany, Vietnam, the U.S., Italy and South Korea. The European and U.S. auto and semiconductor industries have been significantly affected by the export controls.
This week, Chinese and U.S. officials agreed in London on a six-month resumption of rare earth exports in exchange for eased U.S. jet engine export restrictions to China. China’s Ministry of Commerce confirmed that it has approved some compliant applications and will continue to review more.
By Lee Shih Ta
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