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S. Korea relies on China for 80% of rare earths import

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S. Korea relies on China for 80% of rare earths import
Updated: 2012-01-31 10:18
SEOUL - South Korea saw a greater reliance on China for rare earth supplies in 2011, with China accounting for nearly 80 percent of South Korea's rare earth imports, customs data showed Monday.

South Korea purchased a total of 282 tons of rare earths from China last year, accounting for 78 percent of the country's total imports of 360 tons, according to the Korea Customs Service.

South Korea's dependence on China for rare earths in 2011 rose by 13 percentage points from a year earlier, the data showed.

Rare earth materials are key components of many modern-day technologies, including hybrid electric vehicles, liquid crystal displays and other high-tech equipment.

Although South Korea is a leading exporter of semiconductors and smartphones, it depends almost wholly on outside supplies for the rare earth materials used in making these high-tech items.

"We are now importing rare earth materials from 18 countries, up 3 countries from before but our dependence on China has been increasing," the agency said.

"High reliance on a single country leaves us vulnerable to possible price hikes caused by market monopoly," it said while stressing the need for finding alternative materials and diversifying import sources.
 
China supplies 95% of world rare Earth supplies, SK story is a worldwide problem. China looks to be restricting supply and using this as a bargaining chip. China did lose the WTO case yesterday and were ordered not to restrict supply but I dont think the ruling will make much difference. You are seeing countries at the moment scrambling to re-open mines and scout locations but they probably wont be able to do it cheaper than China or Africa.
 
So S. Korea buy minerals from China and sell the finished product back to them?

Like Samsung TVs etc?

Rare earths aren't rare. What's rare is the separation technology which China has a monopoly on. China REFINES 95% of the world rare earth market, it just so happens that we also have the mines. US mines will be forced to ship their rare earths to China for processing.

Just like how US backed Arab dictatorships have oil, but depend on others to supply their fuel.
 
China supplies 95% of world rare Earth supplies, SK story is a worldwide problem. China looks to be restricting supply and using this as a bargaining chip. China did lose the WTO case yesterday and were ordered not to restrict supply but I dont think the ruling will make much difference. You are seeing countries at the moment scrambling to re-open mines and scout locations but they probably wont be able to do it cheaper than China or Africa.

That would in some time, reduce the dependence on China. It is weird considering that Chinese are equally dependent on Korea and Japan. A Business is a two way relationship.
 

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