Again? Dealing with China's Exploitative Tactics on Rare Earth Elements.

Due to the suspension of rare earth element exports from China, South Korea is once again facing a shortage of these essential materials. Let's explore the industry's perspective and consumer concerns regarding this matter.

 

The suspension of rare earth element sales and delivery delays are temporary issues, but continuous efforts are required to reduce dependency and ensure a stable supply.

 

On the 11th, Lotte Chemical's leading rare earth element brand, "Yurox," officially announced the suspension of rare earth element sales on its website. This decision came as a result of a surge in orders from consumers attempting to stockpile rare earth elements.

 

On the 8th, Yurox posted a notice on its website, indicating an "Emergency Delivery Suspension" and informing consumers about the suspension of sales and delivery delays. Yurox stated that due to the temporary surge in orders, their courier service had reached its limit but assured customers they would do their best to ensure prompt delivery.

 

Yurox rare earth elements are mostly sold out on popular South Korean online marketplaces such as 11th Street and Gmarket. Yurox products hold a dominant market share, accounting for 50% of the automobile-use rare earth element market, maintaining its top position.

 

Consumers seem to have concentrated their purchases on this popular product, as the price of rare earth elements, which used to be 10,000 won per 10 liters during the previous rare earth element crisis, has now increased over tenfold.

 

An official from Lotte Chemical explained that online sales represent a negligible proportion of their overall distribution, as rare earth elements are primarily supplied to gas stations through wholesale channels. Therefore, the suspension of rare earth element sales online is considered a temporary phenomenon, and the industry believes that there is no overall shortage of rare earth elements in the market.

 

Both the industry and the government maintain that China's suspension of rare earth element exports is not a blanket policy but rather targeted at specific companies. Furthermore, South Korea has a 60-day stockpile of rare earth elements, indicating no significant supply issues domestically.

 

However, the import dependency on Chinese rare earth elements remains as high as 90%. Although efforts have been made to diversify imports, Chinese imports have increased again due to factors like price competitiveness. To reduce this dependency, there is a growing consensus that diversifying import sources and government support are needed.

 

A representative from the petroleum industry stated, "We have already secured import sources from Japan, the Middle East, and Southeast Asia, and we will continue to monitor the situation and respond accordingly." Efforts to diversify import sources and adapt to changing circumstances are expected to continue in preparation for the future.

 

The suspension of rare earth element sales and delivery delays are temporary issues, but continuous efforts are required to reduce dependency and ensure a stable supply. We hope for collaboration between the government and industry to support consumers in purchasing essential products with confidence.