Welcome to the Goudsmit UK May Market Update. This update provides an overview of key developments, helping you stay informed and prepared for whatever the market brings.
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Market Outlook:
Global trade routes between China and the UK continue to face mounting pressure. Both sea and air freight are experiencing significant challenges, driven by congestion, geopolitical tensions, and evolving regulatory controls.
In a major policy shift, China introduced new export controls on several rare earth elements in April 2025. These include materials critical to technology, defence, and green energy sectors, such as neodymium and samarium.
Exporters must now obtain licenses to ship these materials, increasing regulatory hurdles and sparking concerns over future supply stability. Early information states that licences may take upwards of 45 days to be granted.
For further information on the impact of these restrictions, please refer to Update: Impact of China’s Restrictions on Rare Earth Metal Exports.
In Summary: With both sea and air freight routes facing disruption, it is important to stay agile. Advance planning, diversified routing, and close coordination with logistics partners are essential strategies for navigating the current freight environment.
Exchange Rate
Worst GBP to USD exchange rate in April 2025: 1.2736
Best GBP to USD exchange rate in April 2025: 1.3435
Average GBP to USD exchange rate in April 2025: 1.3144
Port Operations
Ningbo Port, one of China’s busiest export hubs, is currently facing substantial congestion, with vessel wait times ranging from 10 to 14 days. This is largely due to the rerouting of global shipping lanes around the Cape of Good Hope – avoiding the Red Sea due to ongoing conflict – alongside recurring weather-related port closures and recent holiday slowdowns.
As a result, door-to-door transit times from Ningbo to the UK now regularly exceed 40 days. Freight rates remain volatile due to the spike in demand and reduced service reliability. These disruptions have led many businesses to reassess their inventory strategies and shipping schedules, emphasizing the need for early booking and flexibility in routing.
Airport Operations
Air freight services from China to the UK are also under strain. With more shippers shifting from ocean to air to avoid long maritime delays, demand has surged—driving rates above $3.90/kg to Europe. Transit times remain faster, typically 5 to 10 days, but space is tight and subject to disruption.
Further complicating air freight operations, a major power outage at Heathrow in late March caused significant backlogs that continue to affect cargo handling times. Additionally, reduced e-commerce shipments—partly driven by recent U.S. duty rule changes—are slightly easing volumes but not enough to offset the broader capacity crunch.
Commodity Rates
In April 2025, cobalt saw a sharp rise to $33.32/kg, continuing its recent upward trend, while copper remained strong at $10.17/kg. Neodymium eased slightly to $70.00/kg after a brief uptick, and aluminium inched up to $2.42/kg. Notably, samarium recorded a significant jump, reaching $11.90/kg—its highest level since late 2023 – driven by ongoing export restrictions.
Thanks for reading the Goudsmit UK Market Update. At Goudsmit UK, we specialise in providing high-quality magnets and engineered components tailored to meet your specific needs.
Our team of experts is dedicated to helping you find the perfect magnetic solutions for your projects. For more information about our products and services, contact us at info@goudsmit.co.uk or call +44 (0) 2890 271 001.
