Japan Rare Metal Import Expected to Decline after October

Japanese rare earth import decreased by 23.6% to 497 tonnes in September from a year earlier, according to the trade statistics by Ministry of Finance. The import unit price lower by 22% or 755 yen to 2,694 yen per kilogram. Rare earth demand is weakening from neodymium-iron-boron magnets, which are used for small motors in automobiles and electric appliances. Automobile and electric appliance sales are slowing down after the global financial crisis.

Japanese rare earth dealers say they receive few orders recently. Metallic neodymium price had stayed at US$ 40-50 per kg by July and turned downward since Chinese producers began to offer much cheap price to gain cash. After summer, magnet makers’ procurement sharply declined. The price plunged to below US$ 30 when domestic producers can conclude few contracts.

In September, Japanese import volume increased for lithium carbonate, used as a battery material, cerium oxide for polishing agent and indium for liquid crystal panel’s transparent electrode material. However, electric appliance consumption is declining in October after the impact by global financial crisis. Japanese rare metal import might decrease sooner.

The import also increased for molybdenum, vanadium and titanium in September, those which are used for steel making. However, a Japanese molybdenum producer source said they hold order backlogs received by September while the new order receipt is expected to decrease largely in and after October.