LYC 3.62% $6.29 lynas rare earths limited

Change the focus China

  1. 5,436 Posts.
    Lynas don`t stand alone as far the difficulties that it is facing to produce at a profit.
    Lynas will not produce or reach nameplate if not for a profit.

    Lynas is a producer but the viability of remaining in business hinges around the PRICE of REE.more than the COP.

    Imo ,China got the monopoly on REE and not likely to lose this without gov intervention.
    China dictates the price of anything including other metals by manipulating the prices over a term that suits itself and its agenda.
    This is done by first stock piling the material, well beyond its domestic needs for the foreseeable future.
    When the demand is not great ,China makes things worse by selling some of the stock piled lot on the cheap. Cheap enough to put a producer out of business.
    Final step t/o the producer at a rock bottom price and start stock piling again.
    China has long sight while Australia only worries for few years ..till next election.

    End result ,SP will go down and there is also a risk that these producers will fold.

    This is no different to the supermarket cutting down the price of milk or eggs to put the farmer out of business. Then the farm is bought by the supermarket company .

    Lynas is in production .That is good but at same time it has debts to pay ,which cannot wait.
    Other REE companies,cannot come into production while price of REE remain suppressed.

    What is the WTO doing about the monopoly of China?
    To my knowledge ,china is yet to respond .

    This is neither a negative nor positive ramp about LYC.

    It is a genuine concern that every Australian should open eyes and communicate feeling with their MP before it is too late.
    Forget the arguments among yourselves in this forum. Join forces and tackle the main issue.

    I am sure that there are a number of good educated posters who like to add to this subject.
    Your participation is appreciated.
 
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