Nakamura Tofu: Japan's dependence on China's rare earth can fall to less than 60%

In Japan, the penetration rate of eco-friendly cars is expected to reach 50% by the year 2020. The rare-earth neon is an indispensable raw material for the manufacture of high-performance motor core components such as eco-friendly automobiles.镝 focuses on the "ion-attached deposits" unique to China's southern regions, and Japan's dependence on Chinese calving is above 97%. Since 2012, Japan has been committed to "internationalizing" the rare earth problem, while increasing efforts to reduce its dependence on China's rare earth resources.

According to the "Nihon Keizai Shimbun" reported on June 1, 2011, Japan's rare earth imports from China have decreased by about 30% from the previous year. Compared with the peak prices in summer last year, the price of major rare earths has been falling all the way.

Japan's "Rare Earth Trading First Person", chairman and general manager of Japan Advanced Materials Corp., which specializes in rare metals and rare earth trade, said that for traders, "the feast of rare earth is over." Therefore, as a whole, Japanese businesses are now relatively calm on the issue of rare earths, which also gives the Japanese government more room for manoeuvre.

According to the Financial Weekly report, the report of the Nomura Research Institute believes that restricting rare earth exports by China is not so much an indication of China’s economic development as it is the performance of China’s resource diplomacy; by 2015, China’s supply of rare earths and domestic needs will increase. At the same time, the export will continue to be restricted in the future and it may be accompanied by price increases.

The report pointed out that Japan's current "China+1" decentralized supply risk strategy also has uncertainty. First, the prospects for the development of overseas new mines are easily impacted by China's low-price strategy again, and are forced to stop again without profits. Second, for Japanese companies, the worst is that China also increases Equity investment and even monopolization of overseas mines. The report recommends that Japan's rare earth materials and parts manufacturers follow the example of European, American, and Korean companies and increase investment in China to build a more stable supply chain; in the process of China's integration of rare earth industries, it will strive to establish a core backbone company with China's mining industry. alliance.

Nakamura Fufu believes that China’s absolute dominance of rare earth prices will not be too long. He pointed out that there are approximately 99 million tons of rare earth reserves in the world. In 2009, the amount of rare earth reserves was 124,000 tons. Even if it doubles in the future, the global reserves of rare earths will be sufficient for 400 years. Companies involved in rare earth mining in Australia, North America, India, Vietnam and other countries have been promoting rare earths to him.

In addition, smuggled Chinese rare earths have a great impact on the prices of rare earths imported from normal channels. Nakamura's argument is that the actual amount of rare earth used in Japan exceeds that of regular channels. In addition, some of China’s mined rare earths enter the Japanese market through third countries such as Vietnam. The price of smuggled rare earths is about 20% lower than that of normal imported rare earths, which also partially prevented the rise of rare earth prices on the market.

According to Nakamura's personal estimation, smuggled rare earth accounts for almost 30% of the Japanese market. In a few years, Japan’s dependence on rare earths in China can be reduced to less than 60%, excluding smuggling.

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