I believe you have to back your product/industry and not the spot price.
Most importantly, the western supply chain is and will decouple from the old/manipulated Chinese spot price.
There is now a divergence of supply markets:
1. The Western Market; which has additional price elasticity due to US tariffs. Thats a 25% premium. Further, it has a supply defiicit built in, as the western markets have manadate ex-china supply. Subsequently, you can then see the limited supply coming on market. This renders the chinese spot market price for NdPr useless. i.e. the demand by far exceeds supply, and therefore will attract a premium on the price - at worst this be 25%. In fact, the supply which has been recently modeled due to tariffs and supply chain diversification mandate means there has to be a premium on western supply prices above this, due to excess demand- refer to Europe mandate of an extar 35% demand that is ex-china. So ignore the market manipulation, new contracts will be favourable. If thee not, there is majorly problem with management. Of which we know AL is a smooth operator.
2. The Eastern markets; they will remain open, and anyone that allows human rights, slave labour and other ESG issues in the supply chain will continue to buy this lower cost source. The issue is for this market, on the western markets, those that buy EV's etc with this product, for example if we import an Indian car, it carries the real risk of being quarantined/stuck on the docks. Refer recent EV's in the US.
Conclusion: forget the spot price, the economics have been remodeled, particularly for those that have a genuine agenda, not a paid agenda on social media. I notice one of your resident downrampers refers tired old historic charts regularly. Well, that is so far behind the 8 ball... i.e. If your looking in the rear vison mirror in this industry, then your yesterdays news.
Good luck, and LYC is a great company, and spot price is no longer a metric for the western supply chain.
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Last
$5.88 |
Change
-0.145(2.41%) |
Mkt cap ! $5.547B |
Open | High | Low | Value | Volume |
$5.80 | $5.96 | $5.76 | $18.64M | 3.171M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
30 | 16884 | $5.87 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$5.88 | 19398 | 25 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
23 | 14394 | 5.860 |
32 | 69789 | 5.850 |
21 | 60440 | 5.840 |
10 | 23258 | 5.830 |
11 | 30613 | 5.820 |
Price($) | Vol. | No. |
---|---|---|
5.870 | 6876 | 27 |
5.880 | 31699 | 22 |
5.890 | 38893 | 18 |
5.900 | 41708 | 18 |
5.910 | 25205 | 11 |
Last trade - 12.01pm 24/07/2024 (20 minute delay) ? |
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