Rare Earth Producers Still Beholden to Chinese Supply
- Details
- Category: Rare Earth News
- Published on Monday, 01 September 2014 10:51
The performance of rare earths producers such as Australia’s Lynas Corp (ASX:LYC) and Molycorp (NYSE:MCP) is still tied to how much rare earths supply China releases into the market. However, the author saw things looking up overall for producers outside of China.
As quoted in the publication:
You could say that the non-Chinese rare earths miners and processors have been taken for fools. All that work, and then the market is again flooded, forcing prices lower. But it’s worth thinking again. While companies like Lynas Corp were funded on the back of rocketing prices, their very existence now means China’s monopolistic stranglehold is broken. Lynas may not be achieving great things as a share, but if it can manage to hang in there, it could have a good future when prices rise.
The rare earths story really isn’t that complex and in truth, the more market players, the more these rare earths become less “rare”. That can only be a good thing.
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