For the many posting here that are relatively new to the REE scene, the following chart taken from a Lynas presentation should be very instructive. The spike caused demand destruction and it is why the prices are where they are.
Look at the prices 2008 & 2009, they had been around that area for years.
Then look at the spike, I have said on here many times that the OEM's who used REE in their products turned their R&D teams and funds to finding alternates to the REE based products or ways to minimise usage in their products.
And it is not simply are matter of switching back to REE's when the price drops, significant production changes need to be made. An analogy would be diesel and petrol engines in cars, they both do the same thing but if you bought a diesel because it was cheaper to run and then petrol halved in price, you need to change cars to benefit and at a significant capital cost.
LYC Price at posting:
3.8¢ Sentiment: None Disclosure: Held
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