Welcome to the Goudsmit UK August 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:
China’s export controls on several important rare earth elements, including samarium & dysprosium, are significantly impacting global procurement strategies.
Businesses exporting these materials are now required to obtain licenses before shipping, and the application process can be lengthy, with processing times often taking up to 45 working days. Delays are possible if the necessary documentation is incomplete or inaccurate.
These specific rare earth elements are crucial for manufacturing magnets, semiconductors, and components for electric vehicles, making them indispensable across various key industries. In response, some UK importers are increasing their inventory levels to mitigate the effects of these controls.
At Goudsmit UK, we understand that navigating these supply chain challenges requires expertise, adaptability, and a reliable partner. Our team is here to help you plan ahead, manage risks, and ensure your orders are delivered with minimal disruption.
Whether you’re looking to discuss current shipments, future requirements, or strategies to mitigate potential delays, you can rely on us to support your business every step of the way. Please get in touch with us to discuss how we can assist you.
Exchange Rate
Worst GBP to USD exchange rate in July 2025: 1.3206
Best GBP to USD exchange rate in July 2025: 1.3743
Average GBP to USD exchange rate in July 2025: 1.3495
Port Operations
Ports in China, including major hubs such as Shanghai, Ningbo, and Yantian, continue to experience significant backlogs, creating bottlenecks across global trade routes. Vessel waiting times are affecting schedules, particularly in the Shanghai–Ningbo corridor. These delays are being compounded by shipping lines rerouting vessels around the Cape of Good Hope to avoid security concerns in the Red Sea—adding considerable time to UK-bound shipments.
Door-to-door delivery times are currently averaging around 40 days, with consistency remaining a challenge. Shipping rates are fluctuating as carriers adjust schedules and capacity to manage demand. Importers are advised to factor in extra lead time, hold buffer stock where possible, and consider splitting shipments to help offset these unpredictable conditions.
Airport Operations
Air freight rates from China to Europe remain high, exceeding $3.50/kg, as strong demand and ongoing sea freight disruptions put pressure on capacity. While flight schedules are generally consistent, space availability is tight, leading to frequent overbookings and last-minute price increases.
Standard air transit times are typically 8–10 days, though delays can occur due to airport handling backlogs and re-routing to avoid Russian airspace. This closure has extended some flight durations by up to 25% and contributed to higher fuel costs. Priority continues to be given to high-value or urgent shipments, which can delay general cargo. Securing space requires forward booking and, where possible, flexibility on uplift options.
Commodity Rates
Commodity prices in July showed a split trend, with rare earths strengthening while several base metals eased. Neodymium posted a significant jump, driven by supply constraints and robust magnet sector demand, while samarium also moved higher under continued Chinese export controls.
Cobalt extended its upward run, marking a fifth consecutive monthly gain. Copper saw a sharp correction after July’s high, and aluminium edged lower. Brent crude oil ended July at $73 per barrel.
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 today.
