Graphite price outlook, page-17

Lynas dead and buried without Chinese support?

Moneymorning 3rd Oct "As a result of China’s significant influence on the rare earths market, Lynas has seen its average rare earths ‘basket sales price’ fall from above US$200 per kilogram in 2012 to US$18.25 per kilogram. This is down from US$22.63 per kilogram last quarter."
The Chinese could do the same with graphite, as I said they do not give up market domination, it's not in their DNA.
Note the company's reference to 'anticipated average sales prices" and MOUs and the lack of reference to contracted sales prices, MOUs are worthless, they are just 'understandings' and have no standing in contract law. With the uncertainty around Chinese graphite production why would any end user sign up to a contract that locked in prices? I suspect that is the problem for Valence and at least one of the reasons they couldn't release the BFS. They are hoping the market will stabilise with Chinese production becoming clearer and end users more willing to sign off on contracts. This may happen but it's uncertain and a risk and that risk is reflected in the share price.