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China’s rare earth export restrictions led to a 75% drop in magnet exports over two months, forcing automakers worldwide to halt production, Reuters reported. Beijing imposed the restrictions in April as a retaliatory measure for U.S. tariffs. The move backfired on Chinese magnet producers, who were already struggling with weak domestic demand and an economic slowdown. Beijing and Washington announced a deal in June to restore supply chains, but experts say implementation will take time, and damage to producers is already extensive. Small- and medium-sized magnet makers cut production by 15% in April and May, and share prices slumped before rebounding without clear fundamentals. Analysts expect further industry consolidation, particularly as companies face customized products that can’t be easily resold domestically and rising inventory levels.

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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02China's rare earth export restrictions caused a 75% drop in magnet exports over two months
00:07and forced automakers worldwide to haul production, Reuters reported.
00:11Beijing imposed the restrictions in April in retaliation for U.S. tariffs.
00:15The move backfired on Chinese magnet producers,
00:17already struggling with weak domestic demand and economic slowdown.
00:20Beijing and Washington announced a deal in June to restore supply chains,
00:23but experts say implementation will take time,
00:26and damage to producers is already extensive.
00:28Small and medium-sized magnet makers cut production by 15% in April and May,
00:33and share prices slumped before rebounding without clear fundamentals.
00:37Analysts expect further industry consolidation,
00:39especially as companies deal with customized products
00:41that can't be easily resold domestically at rising inventory levels.
00:45For all things money, visit Benzinga.com.

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