Life Style

Myanmar earthquake may have disrupted China’s rare earth supplies, analysts say

The deadly earthquake in Myanmar last month may have disrupted production of critical minerals that are normally sold to China, casting further uncertainty over global rare earth supplies at a key juncture for international trade.

The 7.7-magnitude quake in late March could have damaged mining equipment, affected mine safety and blocked transport routes in Myanmar, which is China’s largest foreign supplier of rare earth elements, analysts say.

“This earthquake may once again trigger concerns about the supply of rare earths, further exacerbating price volatility,” said Wendong Zhang, assistant professor in applied economics and management at Cornell University. “China will be forced to diversify more.”

China is the world’s dominant producer of rare earths – a coveted subset of critical minerals that are essential to making everything from smartphones to advanced weaponry – controlling nearly 90 per cent of global processing capacity.

But many of the raw materials that feed these facilities are imported into China from abroad – especially from Myanmar. China imported 44,000 tonnes of rare earth elements from Myanmar last year, which accounted for 57 per cent of its total imports, according to Zhang’s calculations.

Myanmar is a crucial supplier of dysprosium and terbium, which are “very important rare earths” that allow magnets to work at high temperatures, said Jon Hykawy, president of the Toronto-based industry advisory firm Stormcrow Capital.

Source link


Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button