re: Ann: Metal-Pages Shanghai Presentation - ... Hello TonioThe...

re: Ann: Metal-Pages Shanghai Presentation - ... Hello Tonio

The first point to note is your assertion of a 40% pricing difference between Chinese Domestic and Chinese FOB.

There are two terms commonly used in shipping:
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CIF

Definition of 'Cost, Insurance and Freight - CIF'
A trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier.

FOB

Definition of 'Free On Board - FOB'
A trade term requiring the seller to deliver goods on board a vessel designated by the buyer. The seller fulfills its obligations to deliver when the goods have passed over the ship's rail.

When used in trade terms, the word "free" means the seller has an obligation to deliver goods to a named place for transfer to a carrier.
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Obviously, there is little cost in moving a kg of goods to a certain point so the term FOB must have an unusual meaning in respect of REOs.

Perhaps it means that companies operating within China are given a lower price than companies that buy the exported product - that is the international price is called FOB - v. unusual perhaps unique but possible.

I am sure that the WTO would find this interesting as it amounts to a direct subsidy within China.

Perhaps NTU expects to find Clients in the international space rather than supply the Chinese domestic market -any way to my knowledge there is some debate over the actual level of reserves of heavy REEs in China inhibiting future exports.

Moreover, you would have to believe that NTU would publish a basket price they could achieve rather than an inflated number for no good purpose as they have necessary funding locked in.