China blocking Rare Earth export ? Think Again !!!

[Hafizzz]

Japan rare earths imports from China jump 40 pct in March
Japan rare earths imports from China jump 40 pct in March | Reuters

(Reuters) - Japan's imports of rare earths from China rose 40 percent in March from the previous month, Ministry of Finance data showed, with some observers saying demand is so far unaffected by last month's devastating quake though the outlook remains murky.

Imports of rare earths from China stood at 1,603.6 tonnes in March, the data showed on Wednesday. That was up from 1,138 tonnes in February and close to January's 1,783 tonnes, indicating that inflows of the metals continued after Beijing's de-facto ban on shipments was lifted in November.

An official at a trading house in Japan said his company has not faced any problems in procuring from China the strategic metals used in high-tech electronics, magnets and batteries over the past few months.

"We have been getting the materials that have been sealed under contracts by mid-March for shipments from this month. There has been no change in inflows," he said.

Demand from end-users of the rare earths and other industrial metals has remained steady so far even after the March 11 earthquake and tsunami crippled wide-ranging parts supply chains and hurt production of car makers and other manufacturers, the official said.

"None of our customers have so far asked for a change in the contracts for shipments in the April-June quarter, so volumes we import remain as scheduled," he said.

"The quake and subsequent disruptions to production don't appear to have had much impact on procurement of metals. That may be partially due to our customers' constant fear of supply shortages," he added.

Still, the outlook for rare earths imports was murky, the official said, given uncertainty over the price outlook for rare earths in coming months and the impact of the quake on the Japanese economy.

Japanese imports of rare earths in March were still well below December's 4,080 tonnes, when trade resumed after Beijing halted shipments for two months from late September.

China, which produces 97 percent of global rare earth supplies, has been tightening trade in the strategic metal, causing supply concerns around the world.

China's land and resources ministry said Beijing will cap total output of rare earth oxides at 93,800 tonnes in 2011, up 5 percent from last year, and added the ministry would not approve any new prospecting or production licenses for rare earths, tungsten or antimony until June 30, 2012. [ID:nL3E7EV0WZ]

Beijing has already slashed export quotas by 35 percent for the first half of 2011, and the decision has choked off global supplies and driven prices up to record levels. [ID:nL3E7EO07X]

China will issue a second batch of rare earth export quotas later this year, but the total volume for 2011 has yet to be decided.[ID:nTOE72D01I]

Japan's rare earths imports from China accounted for 69 percent of the total in March. Vietnam was second-largest supplier, accounting for about 9 percent.

In 2010, Japan's rare earth imports from China accounted for about 82 percent of the total import volume.

Japanese firms consume about 30,000 tonnes a year of rare earths.

Japan has stepped up diversifying supply sources while the government said Japan aims to cut rare earth consumption by a third within a few years and reduce its reliance on China, by providing subsidies for recycling and investing in new ways to limit their use.

I never believe in anything the Western Media report on China.....it is all about China Bashing. If China was controlling Rare Earth Export then how come export to Japan has jumped up so much ?