A Turning of Japan’s Heavy Dependence on Chinese Rare Earths

It ought to be obvious to all that Japan has been highly dependent on rare earth imports from China over the past few years. However, change is now happening quietly as this started when the Japanese began to buy more rare earths from Malaysia in 2014. Figures from an annual trade statistics 2014 published by Japan’s Ministry of Finance shows that the country’s imports amount of rare earths from Malaysia skyrocketed 13,433.33% to 1,218 tons, compared to a year earlier. With an increase of 51.82% from a year ago, Japan totally imported 22,307 tons of rare earths last year, remaining the world’s top buyer at present.

Thanks to the Japanese government’s great efforts to cut dependence on Chinese rare earths last year, China’s 2014 rare earths share fell 2.19 point from a year ago, to 59.64% of Japanese total imports quantity. The below table shows the details of Japan’s rare earth imports statistics and the degree of the rare earths dependence on China from 2008 to 2014.

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The above table shows that Japan’s 2014 imports of rare earths from China (the largest supplier) reached 13,303 tons, up 46.44% year on year; with a total of 3,352 tons of rare earths and an increase of 83.37% from a year ago, France was Japan’s second largest supplier in the last year; Vietnam as the third largest supplier, which delivered 2758 tons of rare earths to Japan in 2014, rose by 29.97% year on year, while its exports amounts climbed steadily in the past few years; Estonia and Kazakhstan exported 880 tons and 445 tons of rare earths to Japan in 2014,which also diversified rare earths supply chain for Japanese.

It is especially noteworthy that as a result of the skyrocketing rare earths supply source from Malaysia, I believe that China’s market share will continue to go down in this year, though Japan’s maintains heavy dependence on Chinese heavy rare earths at present.

Japan’s 2014 rare earth oxides and compounds imported 15,828.1 tons, rose 66.62% year on year, the import value was 27,358,836,000 Yen; While Japan’s 2014 rare earth metal imported 6,479.361 tons, an increase of 24.76% year on year, valued at 23,942,026,000 Yen; according to the statistics from Japan’s Ministry of Finance.

Meanwhile, the figures from Ministry of Finance also shows that Japan exported 4,831.467 tons of rare earth in 2014, a drop of 18.83% when compared to the same period of 2013, while the total export value stood at 19,616,704,000 Yen last year.

The below table shows the details of Japan’s rare earth imports & exports figures in 2014.

To obtain Japan’s rare earth imports & export statistics for 2014, log into InvestorIntelReport. If your are not a member, click here InvestorIntelReport

The latest statistics from Japan’s Ministry of Finance shows that Japans total imported 3,274.67 tons of rare earth oxides and metals and compounds in the first two months of 2015, the country’s import volumes increased 14.04% from 2,871.48 ton in the same period 2014; of which rare earth oxides and compounds stood at 2293.281 tons, and rare earth metals was 981.389 tons, increased 15.24% and 11.33% year on year, respectively.

Japanese bought 863.858 tons of rare earth oxides and compounds, and 461.987 tons of rare earth metals from China in the first two months of 2015, accounting for about 40.49% of its total imports; while 452.255 tons of rare earth from Malaysia, accounting for about 13.81%; 754.212 tons rare earth from France, accounting for about 23.03%; 450.570 tons of rare earth from Vietnam, accounting for about 13.76%.