RP production is a cartel, and that means the cartel get to determine the price. They are high now not because production costs have increased but because the cartel says so.
The cartel seem pretty sure of their cost base, but of course it is impossible to predict so far ahead.
Therefore only possible reason for signalling prices at some point in the future is to discourage competition.
At $30/t production cost, they have a pricing advantage on the rest of the world, but remember that prices are determined at the margin. In other words, as Morocco cannot satisfy the world's suppply of RP they will _not_ be able to determine the price.
Discussion?
Add to My Watchlist
What is My Watchlist?
