Lei are you born in 1988 by any chance or you just like the lucky number?
Let me put this out there because we are not naive adults here and we knew this all along, if you ask Lynas Executives directly they are not going to admit it to you but behind close doors they will. Its the biggest open secret in the rare earth industry that the big name clients had been buying smuggled rare earth from China for the past two years.
This is a very touchy subject for Lynas because they know their client have been buying the illegal shit and they are not going to directly admit to you that their customers is screwing them behind their backs. The demand has always been there and it has never disappeared, it has never self destructed , it just happened underneath the table and the customer really love this shit. Let's not forget recently Sumitomo had been caught smuggling this stuff.
Now where does the illegal REE comes from? Simple like i said before, from the REE Chemical Factories deem illegal by the Chinese government, Managers find out they are about to lose their company and their jobs so basically smash and grab free for all and why not? Basically its stolen goods out of the truck and even if i can sell the ree for $10 per kg they don't care.
LYC Price at posting:
44.5¢ Sentiment: LT Buy Disclosure: Held
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