Japan Rare Metal Import Stays Low in May

Japanese rare metal import volume represented year-to-year decrease for all 19 items of the trade statistics by Ministry of Finance in May. Production of electronic materials and components bottomed out for January-March and currently recovers to 70-80% level compared with the peak in the first half of 2008. However, electronic material and component makers still hold rare metal inventories.

Japanese rare earths import volume was one third in May from a year earlier. Rare earth magnet makers hold surplus material inventories such as neodymium. A concerned source points out they have one-year inventory at the recent order receipt level.

Liquid crystal panel makers are in full production thanks to Chinese governmental economy stimulation measure. However, Japanese indium import volume decreased by 63% in May from a year earlier, used for transparent conductive layers of liquid crystal panels. ITO (indium-tin-oxide) target makers are consuming their inventories.

Rare metals for steel making also maintains surplus. Japanese steel makers hold surplus inventory because concentrate import has continued based on long-term contracts despite of sharp economy downturn.