In 2020, Japan's overall demand for rare earths fell 9% year on year to 17,000 tons, with yttrium demand increasing for the seventh consecutive year, while samarium and cerium demand remained flat year on year. Demand for neodymium magnet materials decreased. Demand for neodymium-based magnet materials decreased, especially for phosphors.
On March 29, 2021, the Rare Earth Committee (Chairman: Shinichi Watanabe, Branch Manager, Tokyo Branch, Taiyo Koko Corporation) announced the actual demand for rare earth products for the period from January to December 2020. According to the report, Japan's domestic demand for rare earths in 2020 was 17,401 tons, down 8.9% from the previous year, the first decline in seven years.
The status of rare earth demand by type is as follows.
【1】magnets
The production volume of neodymium magnets in 2020 is estimated to have been around 12,400 tons, down 8% from the previous year.
In the first half of the year, the global economy was sluggish due to the spread of covid19 infections, and production for automobiles, which is the mainstay of the industry, fell sharply due to the impact of production contraction. In the second half of the year, in addition to hard disk drive applications, which remained strong, automotive applications saw a sharp recovery in production. Demand for factory automation-related equipment also recovered with the recovery of the Chinese economy.
【2】fluorescent
The number of fluorescent lamps shipped in Japan in 2020 decreased by approximately 17% compared to the previous year.
Domestic shipments of flat-panel TVs in 2020 were up about 11% from the previous year. The number of flat-panel TVs shipped in Japan in 2020 increased by about 11% from the previous year. Large-screen and high-definition types were strong due to stay-home demand. LED backlights are the mainstream for LCD TVs. OLED backlights are also on the rise. As a result, sales of rare earths for phosphors decreased.
【3】Ceramic capacitors
In 2020, domestic production of ceramic capacitors increased 36.1% YoY to 124.657 billion units.
In the electronics market, demand for communication infrastructure and communication terminals expanded due to the spread of 5G. The electronics market was also temporarily sluggish due to the new coronavirus, but has been strong due to the resumption of the Chinese economy and the expansion of PC demand due to changes in the way of life. Demand for automotive electronics increased due to the expansion of demand for electronic components caused by the electrification of automobiles, the expansion of safety functions, and automation.
【4】Exhaust gas catalyst
In 2020, domestic sales of automobiles decreased by 11.5% and global sales decreased by 14% compared to the previous year due to voluntary restraint from going out due to the spread of the new coronavirus.
In response to the trend in automobile sales, the production volume of automotive exhaust catalysts for 2020 was 9,579 tons, down 14% from 11,121 tons in the previous year, and the sales volume was down 16% from the previous year. With the recovery in auto sales since October, both production and sales of exhaust gas catalysts were higher than the same period last year.
【5】Abrasives
Demand in 2020 for cerium abrasives used in glass substrates for LCDs and hard disk drives was generally strong, driven by changes in work styles and lifestyles due to COVID-19.
As for glass substrates for LCDs, demand for notebook PCs and tablets for telecommuting and online classes grew, and demand for TVs was also strong due to people living in nesting houses, resulting in continued tight supply of LCD panels. On the other hand, demand for glass substrates for hard disk drives was strong overall, as the replacement trend by SSDs continued, but demand for high-capacity applications such as servers also continued to grow.
（IRUNIVERSE USAMI）
