the big gap of two prices, that indeed as the most important motive of encourage smuggling.
now there are two voices in China about RE smuggling.
the mainstream: resolutely blocked and crack.
the another: believe the rule of market and price. Called for urgent accelerate the price unity of domestic price and FOB price. the way is rising domestic price and lower FOB price to closed the gap of two prices, finally cause smuggling as unprofitable.
"if the international price is same even lower than the domestic price, who would go do Smuggling of rare earth?" said by a insider of China rare earth industry.
because as long as there no market price, still have huge profits, would be difficult to completely end of smuggling. the example is gold, which price has converged of domestic price and international price, fully market, so that no more smuggling of gold.
LYC Price at posting:
38.7¢ Sentiment: LT Buy Disclosure: Held
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