HS Code:
The category 'Containing yttrium or scandium as the predominant metal' (HS Code: 2846.90) refers to compounds, inorganic or organic, of rare-earth metals, specifically where yttrium or scandium is the predominant metal. These materials are critical in various high-tech applications, including electronics, lasers, and renewable energy technologies such as wind turbines and electric vehicle batteries. Yttrium is often used in phosphors for LED lights and displays, while scandium is valued for its use in lightweight alloys for aerospace and automotive industries. Global trade in this category is driven by the demand for advanced materials in technology and green energy sectors, with supply chains heavily influenced by the concentration of rare-earth mining and processing in specific regions.
Total Trade Volume
USD 1.2 billion
Data from 2022
Source
United Nations Comtrade Database
USD 780 million
65% of total trade of total trade
Increasing
USD 180 million
15% of total trade of total trade
Stable
USD 120 million
10% of total trade of total trade
Increasing
USD 60 million
5% of total trade of total trade
Stable
USD 48 million
4% of total trade of total trade
Increasing
Average Rate
5.2%
Highest Rate
25% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements or for WTO members in specific categories)
Rising demand for rare-earth materials in green technologies
Increased trade volume as countries invest in renewable energy and electric vehicle production, driving up demand for yttrium and scandium compounds
2021-2022
Diversification of supply chains
Countries like the US and EU are seeking alternative sources outside China to reduce dependency, leading to new trade partnerships and investments in domestic production
2020-2022
Technological advancements in recycling
Improved recycling methods for rare-earth metals are reducing reliance on primary imports, potentially impacting trade volumes in the long term
2022
China announced stricter export controls on rare-earth compounds, including those containing yttrium and scandium, citing national security and environmental concerns. This has led to concerns over supply shortages in key markets like Japan and the US.
October 2023
Potential increase in prices and accelerated efforts by importing countries to secure alternative supply sources
The US government allocated funding under the Inflation Reduction Act to develop domestic processing facilities for rare-earth metals, including yttrium and scandium compounds, to reduce reliance on imports.
August 2022
Expected to boost domestic production and reduce import dependency over the next 5-10 years, potentially reshaping trade patterns
The European Union introduced the Critical Raw Materials Act to secure sustainable access to rare-earth metals, including yttrium and scandium, through partnerships with non-EU countries and investments in recycling.
March 2023
Likely to increase trade with diversified suppliers and promote circular economy practices in the rare-earth sector