Japanese Cerium Polish Makers Halve Output due to Material Shortage

Japanese makers of cerium based polishing materials are halving their outputs compared with the peak before Lehman Shock. Cerium based polishing materials are used for surface polish of liquid crystal panels and hard disks. The makers cannot procure cerium oxide due to China’s rare earth embargo against Japan. Japanese polishing material makers seem to hold one-month inventory of cerium oxide. They are lowering output levels to keep the product supply. Polish users are also trying to reduce material consumption.

One Japanese major maker of cerium based polishing material said they are halving the production to 200 tonnes per month from 400 tonnes of the peak due to China’s embargo. Both of Japanese cerium oxide producers and consumers seem to have one-month inventory. They make efforts not to impact production of televisions and personal computers by lower operations and consumptions.

As to neodymium and dysprosium, domestic inventory is estimated for 6 months or so. Magnetic alloy makers and users have cautiously increased their material inventories since neodymium and dysprosium are essential materials for permanent magnets applied to motors inside cars and consumer electronics.