Why has overseas yttrium oxide pricing surged over 15-fold while China's domestic price stays stable?

Why has overseas yttrium oxide pricing surged over 15-fold while China's domestic price stays stable?
China's export controls on medium and heavy rare earths, including yttrium, implemented from April 2025 and tightened against Japan in January 2026, have cut overseas supply dramatically. Shipments to Japan fell over 90% year-on-year in early 2026, with some months near zero. Since China accounts for over 93% of global yttrium oxide capacity, overseas buyers face acute shortages. Spot prices abroad jumped from roughly $8/kg in late 2024 to $500-600/kg by mid-2026, with European 5N grade reaching $800/kg. Meanwhile, domestic prices remain at 53,000-56,000 yuan per tonne (about $7.5-8/kg), creating a price gap of 60-85 times. The divergence reflects China's deliberate policy of maintaining ample domestic supply while using export controls as a strategic lever, forcing downstream users like Japan's Tosoh and Murata into production halts or severe cost pressure.