Do you not find it strange that a centrally planned economy, run by a regime which has shown how repressive it can be, is unable to control the mining, production, transport, sale and probably export of 40,000 to 60,000 tonnes of REE, that is 44% to 67% of the quota - produced without authorisation? That the authorities do not know where these mines and factories are? The whole thing beggars belief.
All the data shows that the Chinese have grossly exceeded quotas since 2006, at least, when the basket price was around $5. No reliance can be placed at all on Chinese posturing over quotas, reductions for environmental considerations or any other reason. Why anyone should think that they would suddenly start getting serious about quotas with the basket price (lynas's at any rate) now around $30, or six times the size it was seven years ago, is very strange. CoP cannot have gone up six times, so it's not a CoP problem!
LYC Price at posting:
52.5¢ Sentiment: None Disclosure: Not Held
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