Do you honestly believe this? Why would China possibly import rare earths when they have enough idle capacity to increase their own supply by 2-3x? The Chinese are not fools, they will not pay a premium for rare earths when they have so much abundant supply in their own back yard. This is the problem with the stock and the whole RE market. Namely regardless of the wild projections by the bulls, the industry dynamics highlight that this is nearly impossible to achieve (because if all capacity came online supply would be 2-3x current demand and prices would be crushed even more). It is like saying Australia will be a net importer of iron ore in a few years, which is actually not as crazy a statement as the Chinese being net importers of RE, given Aus controls less of the iron ore market than China does the RE market.
LYC Price at posting:
61.0¢ Sentiment: LT Sell Disclosure: Not Held
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