Japan Rare Earths Imports from China Plunge in Nov

TOKYO, Dec. 27 -- Japanese imports of rare earths shrank further in November, government data showed on Monday, reflecting the impact from China's de-facto ban on shipments of the minerals which was lifted late last month.

Japanese imports of rare earths from China stood at 634 tonnes in November, halving from 1,278 tonnes imported in October, and less than a third of September's 2,246 tonnes.

Japan's total imports of rare earths in November slumped 38 percent from October to 1,173 tonnes.

China accounted for about 54 percent of Japanese imports of the strategic metals in November, falling from some 68 percent in October and about 61 percent in September.

Japanese companies had complained of restrictions on shipments of the metals, vital for making auto parts and high-tech products, by Chinese customs officials following a spat over disputed islands in the East China Sea which led to a de-facto suspension by Beijing on exports from late September.

Japan's trade minister and trading firms said late last month Japan-bound shipments had left China, confirming the resumption by Beijing of exports of the minerals.

Analysts have said the continuation of rare earth imports to Japan from China, although small in volume, despite Beijing's de facto ban was probably due to factors such as differences in how rare earths are categorised by each country and a dribble of imports that had previously been delayed.

Japan has since stepped up efforts to diversify its sources of supplies of the minerals, including an agreement with Mongolia to cooperate on developing rare earths and striking a tie-up with a mining company in Australia.

China, which produces 97 percent of the world's rare earth metals, set its 2010 export quota 40 percent lower than 2009 levels, creating supply worries among importing nations. Traders said China may further trim rare earth export quotas for 2011.