US-directed rare-earth magnet shipments from China dropped in November, slipping 11% from October, according to customs data released on Saturday. Customs data also showed the US receiving 582 tons, down from 656 tons the month before. This decline came even as a separate release reported month-on-month growth in overall rare-earth sales, which are mainly made up of magnets. The split numbers added more weight to how unstable this trade lane has been all year. Rare-earth magnets sit inside EV motors, drones, and military systems, and Beijing treated them like a pressure tool throughout the year. In April, officials rolled out a tighter export-control system that pushed US-bound flows below 50 tons in May. Later months saw back-and-forth trade actions, brief truces, and then a slow pickup in shipments, bringing exports back toward usual ranges before November’s pullback. Meanwhile, China’s Commerce Ministry said it approved many general licenses meant to fast-track rare-earth exports, and shorten wait times for companies that meet the conditions. When Hong Kong reporters asked about claims that some approvals covered European companies, a ministry spokesperson kept the response narrow and said applications were approved without naming any region. The spokesperson allegedly said, “Some exporters have already preliminarily met the basic requirements for applying for a general license,” adding that officials already accepted and approved multiple submissions. The ministry said these licenses form a new tool for exporters of vital elements, including magnets, which have dominated the rare-earth category for years. Officials also said more exporters are expected to apply once they meet the criteria. Traders said the new permit lane may help reduce delays, though it will depend on how many companies qualify. Holding lending rates steady while the economy slows A Reuters survey said China’s central bank plans to keep benchmark lending rates unchanged in December for the seventh month in a row. All 25 respondents expected the one-year loan prime rate to stay at 3.0% and the five-year rate at 3.5%. The view followed the central bank’s move this month to leave its seven-day reverse repo rate at 1.4%, which supports LPR levels. LPRs are calculated each month from proposed rates submitted by 20 commercial banks to the Chinese central bank. Factory output and retail sales slowed in November as China’s property slump weighed on demand. The country recorded a trade surplus above $1 trillion in the first eleven months of 2025, but exporters are bracing for a tough 2026 as trade tensions build. A Shanghai bank trader said banks face record-low net interest margins of 1.42% and allegedly warned that:- “A cut in LPR now would mean a reduction in mortgage rates at the start of next year, which would make life more difficult for banks.” Economists reportedly believe that policymakers see no need to cut rates this month because China is still on track for its 5% growth target for 2025. Citi analysts expect the central bank to begin easing in January 2026, while ING analysts predict new support in the early part of next year. China Post Securities on Friday said officials may consider a 20-basis-point interest rate cut in the first half of 2026, and Citic Futures forecasted 10–20-basis-point cuts in 2026. If you're reading this, you’re already ahead. Stay there with our newsletter .
