Innuovo Technology to Expand Magnet Plant for 424 Million Yuan; Shares Up 2%

Chinese exports of rare earth permanent magnets fell 52.9% to 1,238 metric tons in May from April, Reuters reported, citing data from Customs released Friday.

On a yearly basis, shipments plunged 74%, the report said.

The drop in exports comes as customs officials have been more circumspect about approving rare earth exports, the report said, citing industry sources.

In early April, China imposed export restrictions on seven medium-to-heavy rare earth products and some magnets which are key components in the auto, aerospace, semiconductor, and military equipment segments worldwide, the report said.

Producers such as JL MAG Rare-Earth and Innuovo Technology have recently obtained export licenses for some clients, the report said.

JL Mag Rare-Earth obtained a license for rare earth exports, including for magnets, motor rotors, and components to the US, Europe, and Southeast Asia, Reuters reported.

The metals company applied for licenses following its inclusion in China'e export control list in April, with the applications approved in succession, the report said, citing a post on the Shenzhen stock exchange.

JL Mag Rare-Earth did not say when the licenses were approved, but the approval was announced following a deal ith US and Chinese officials in London, the report said.

Innuovo Technology also said Friday it obtained export licenses, the report said. The rare earths company did not mention where its customers were from, according to Reuters.

Chinese stocks were mixed on Thursday as deflation worries came to the forefront amid slowing inflation and the continuing decline in producer prices.

The Shanghai Composite Index, the main gauge of Chinese stocks, was down 0.6% to 3,211.39. The Shenzhen Component Index, however, rose 0.3% to 9,976.00.

China's consumer price index rose 0.1% year on year in December 2024, down from the 0.2% rise the previous month and marked the slowest pace since April 2024. The reading was in line with the expectations of economists surveyed by Reuters.

Also, the producer price index declined 2.3% year over year in December 2024, easing from the decrease of 2.5% in the previous month. The recent figure was slightly better than the 2.4% decline estimated by Reuters and marked the 27th straight month of declines.

The above figures indicated China's continuing struggle with weak domestic demand that stoked market concerns regarding deflation.

"Deflation looms heavily over China's economy in the run up to Chinese New Year as consumers look for deals when buying gifts for family members," CNBC cited Shaun Rein, managing director of the China Market Research Group, as saying. Rein noted consumers will only buy when they have access to big discounts.

In company news, Innuovo Technology received an insurance claim of 10.8 million yuan for a fire incident at its subsidiary's Zhejiang facility in China in June 2024. Shares of the rare-earth permanent magnet material manufacturer closed 8% higher Thursday.

Innuovo Technology received an insurance claim of 10.8 million yuan for a fire incident at its subsidiary's Zhejiang facility in China in June 2024, according to a Wednesday filing with the Shenzhen bourse.

The incident caused damages valued at 15.5 million yuan but after residual value adjustments, the net loss stands at 568,505 yuan.

Innuovo Technology received an insurance claim of 10.8 million yuan for a fire incident at its subsidiary's Zhejiang facility in China in June 2024, according to a Wednesday filing with the Shenzhen bourse.

The incident caused damages valued at 15.5 million yuan but after residual value adjustments, the net loss stands at 568,505 yuan.