Japan Rare Earth and Indium Import Decreases in September

Japanese rare earth import decreased by 42% to 363 tonnes in September from a year earlier, according to Ministry of Finance. The import represented low volume at below 400 tonnes for 2 months in a row. Japanese rare earth users are facing difficulties in material procurement due to China’s export regulation. Indium import was 23 tonnes in September, almost as much as a year earlier. However, the import volume hit the lowest in 11 months.

Chinese government released the yearly second export license (EL) for 2010 in July and regulated EL of rare earth by 40% from a year earlier. Japanese rare earth import decreased under effect of the policy and Chinese exporters’ sales regulation for speculative intentions.

Meanwhile, the import of cerium oxide, one of rare earth elements, increased by 45% to 448 tonnes in September from a year earlier. The volume represented the highest in 5 months. The impact of EL regulation hasn’t appeared on the statistics figure yet. However, the unit price jumped by 6 times due to international market price upsurge caused by short supply.

Chinese rare earth export to Japan has actually stopped since late September. Japanese consumers are concerned that contracted materials haven’t been delivered yet. Japanese rare earth import will decrease largely on the statistics in October.

As to indium, the import is decreasing when ITO (indium-tin-oxide) demand is weakening along adjustment phase in liquid crystal panel market. Japanese rare earth trader says the demand may not recover within this year.