After Gallium and Germanium: China Announces Export Restrictions for Antimony

Just over a year after export restrictions for gallium and germanium came into force, the Chinese Ministry of Commerce announced similar rules for antimony in mid-August. They will apply from September 15, 2024 for the semi-metal as well as its various processing forms and technologies for preparation and further processing. We have summarized the development for you in our market insight. TRADIUM Managing Director Matthias Rüth explains the implications of this latest example for China’s strong market position on the raw materials markets.

The Chinese Ministry of Commerce announced new regulations for the export of critical raw materials this week. After licenses were imposed for the export of gallium, germanium, and graphite last summer, antimony and various processing forms and processing technologies are set to join the list on September 15, 2024. The metalloid is used as an alloying component for hardening other soft metals such as lead, copper, tin, and zinc and finds usage in flame retardant production. According to the U.S. Geological Survey, China is the world’s largest producer of antimony, with a share of 48 percent.

Dual-Use Goods and National Security: The Background to the Export Restrictions

As with the other raw materials on the export-restricted list, the move is justified with reference to national security, as these items are so-called dual-use goods that can be used for military and civilian purposes. In the case of gallium, exports from the People’s Republic have almost recovered to last year’s levels, but the situation is different for germanium. Exports have continued to fall since April and are well below the previous year. According to the news agency Reuters, there have recently been rumors in the industry that the Chinese National Administration of Food and Strategic Reserves wants to buy around 100 tons of germanium.

TRADIUM Managing Director Matthias Rüth assesses the development:

“China is once again reminding the world of its market power by adding an additional critical raw material to the list of export goods subject to official approval. This fits seamlessly into a series of measures with which Beijing consolidates its control over strategically important raw materials and technologies. China’s dominant role is already evident in metals such as gallium, germanium, and rare earths – a pressure increasingly being felt by the processing industry in Western countries. The situation is becoming more challenging for sourcing companies as the speed with which China announces, implements, and systematically pursues new export regulations has increased significantly in recent months. This begs the question of which raw materials could be affected next. One thing is indisputable: if China continues to expand its position as a raw materials giant, Western industries will need to secure their supply and supply chains of raw materials more than ever.”

Diagram 1: Export figures of Gallium
Diagram 2: Export figures of Germanium