Considering that China, being the largest consumer of REO in the world, and Japan, being the second largest consumer of REO in the world, it makes sense those two countries make up the majority of Lynas customer base.
Obviously China is not trying to keep prices down to the detriment of Lynas. More a case of severe overcapacity and lack of regulation and control of its own REE industry. I think a better question is, why would China renege on their "agreements" next year?
I am sure Lynas has many customers all over the world including North America. It's just that most demand comes from China and Japan obviously.
Why is anyone going to sue? Seems a bit paranoid if you ask me.
The whole REO industry is controlled by China dude. The fate of Lynas depends on China's ability to get its REE industry under control and stabilise production at a more balanced rate compared with demand. There are certainly things Lynas can do within its own control to improve its prospects but the major one, REO prices, is out of the companies control.
If there was large demand for Lynas product in North America I'm sure the company would be all over it. Rather ridiculous to suggest the company is taking the easy way out supplying China rather than build a diverse customer base.
Sounds like a bunch of I'll informed commentary that would only appeal to anyone with a grudge against the company IMO.
LYC Price at posting:
5.6¢ Sentiment: None Disclosure: Not Held
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