Japanese indium import decreased by 45% to 17 tonnes in March from a year earlier, according to the trade statistics by Ministry of Finance. The import turned to month-to-month increase but kept the lower level than the monthly average of 41 tonnes in 2011. The unit price was 29,804 yen per kilogram in March, which represented below 30,000 yen for the first time since September 2009. Japanese indium-tin-oxide (ITO) sputtering target makers show weak appetite in material procurement when liquid crystal panel market has deteriorated since mid 2011 and ITO makers have continued output reduction.
Semiconductor and electronic markets have totally weakened since mid 2011. Thus Japanese tantalum (potassium fluorotantalate) import volume also shrank to a seventh in March from a year earlier, which is used for capacitors of mobile electronics. Rare earth metal import was also low in March. Japanese magnetic alloy maker said magnetic alloy production is gradually recovering, which is an intermediate material for rare earth magnet adopted to hybrid vehicles, electric vehicles and energy saving home appliances. However, alloy makers hold abundant material inventories procured before mid 2011. Moreover, the demand recovery is still slow. Alloy makers are unwilling to increase additional material procurement. Among other rare earths, cerium oxide import was 13 tonnes in March, a ninth of a year earlier. The demand is weak due to deterioration of liquid crystal panel market. Another factor is Japanese government’s program to reduce rare earth consumption in various industries.
