Japan Rare Earth Metal Import Drops by 59% in January

Japanese rare earth metals import decreased by 58.5% to 289 tonnes in January from a year earlier at a quick estimation by Ministry of Finance. Rare earth magnet demand significantly decreased along global market decline of automobiles, electric appliances and machine tools. The import volume hit the bottom since June 2003.

Rare earth metals, such as metallic neodymium and metallic didymium (metallic praseodymium-neodymium), are used for rare earth magnets, mainly neodymium-iron-boron magnet. Rare earth magnets are used as motor materials for hybrid cars, energy saving home appliances and machine tools.

Rare earth magnet demand declined along output decrease of automobiles, home appliances and machine tools since autumn 2008. Another background of Japanese import decline is that magnet makers still hold plenty inventories of rare earth metals. Japanese trader source said few users are purchasing rare earth metals those who have low material inventories and actual demand maintains stagnant.

Among other rare earth elements, Japanese import of cerium oxide decreased by 5.8% in January from a year earlier, which is used as glass polishing agent such for liquid crystal panels. The demand is weak with an expectation global liquid crystal panel market would represent minus growth in 2009. Japanese import also decreased for yttrium oxide, used for phosphors, and lanthanum oxide, used for optical glasses.