Samarium Oxide Export Prices Fall as Lynas Output Pressures Chinese Offers

Lynas

Samarium oxide export prices fell as Chinese suppliers lowered offers in response to Lynas’ first samarium oxide production at its Malaysian refinery. The 99.5% samarium oxide export range dropped to $6-8/kg fob China after reaching a record $11-14.50/kg in late February.

The price decline reflected a shift in market sentiment rather than a full easing of supply constraints. Chinese export permits remain difficult to obtain, especially for shipments to Japan, but Lynas start-up introduced a credible non-China supply route for downstream users.

Samarium oxide export prices had surged earlier because of China’s tighter export control framework for medium and heavy rare earths. The emergence of Lynas output has now weakened the pricing leverage of some Chinese sellers, even though China still dominates global samarium supply.

Lynas Start-Up Adds Non-China Supply for SmCo Magnet Producers

Lynas produced first samarium oxide at its Malaysian refinery on 19 March, adding another separated heavy rare earth product to its portfolio. The company is the only commercial producer of separated samarium, terbium and dysprosium outside China.

The Australian producer is expected by market participants to raise samarium output to about 1,100 t/yr. That volume could be enough to cover a meaningful share of downstream demand in Japan, where samarium-cobalt magnet manufacturing is concentrated outside China.

Samarium-cobalt magnets are used in high-temperature and high-reliability applications across aerospace, defense, automotive, electronics and advanced industrial systems. The material’s strategic value is higher than its market size suggests because SmCo magnets are difficult to replace in demanding environments.

Lynas also plans to expand its product line to include gadolinium, yttrium and lutetium over the next two years. This would further strengthen non-China supply options for selected medium and heavy rare earth oxides.

China Export Controls Still Shape Samarium Market Risk

China continues to control more than 90% of global samarium oxide supply, with global production estimated at about 4,900t in 2025. Output is expected to rise to around 5,000t in 2026 as Lynas adds volume and Chinese production remains steady.

Beijing’s export restrictions remain the main structural risk. China has placed samarium, gadolinium, dysprosium, terbium, yttrium, lutetium and scandium under tighter export controls from 4 April, adding uncertainty for buyers outside China.

Japan is particularly exposed because it is China’s largest buyer of samarium products, accounting for more than 85% of Chinese shipments. Japanese buyers have reported difficulties securing export permits for samarium products since late October, following a sharp deterioration in China-Japan relations.

The price correction therefore does not mean the market has fully normalised. Samarium oxide export prices are now being pulled in two directions: Lynas is weakening China’s supply monopoly, while Chinese licensing controls continue to restrict trade flows into key magnet markets.

The Metalnomist Commentary

Lynas’ samarium start-up shows how even modest non-China output can change rare earth pricing psychology. However, China’s export licensing power remains decisive, especially for Japan’s SmCo magnet industry.