China price support

Some clarity:

"The commercial reserves were times in three batches, the first batch of a total of 1300 tons of commercial purchasing and storage, yttrium oxide, erbium respectively 1,000 tons and 300 tons; the second batch of a total of 1600 tons of commercial purchasing and storage, praseodymium oxide, neodymium oxide, dysprosium, terbium oxide, europium oxide were purchasing and storage 1250 tons, 250 tons, 46 tons, 54 tons; the third batch of 2600 tons will be completed before August 31 purchasing and storage."

So these are "commercial" reserves, with another 2600t before August 31st, certainly should give prices another boost, but the BIG news:

"there will be a corresponding state purchasing and storage, purchasing and storage plan total of 15,500 tons"

No time line attached but huge amount of material to take out of the market, particularly in conjunction with current ROW demand growth.

Total of 21,000t of RE to be taken out of the system in a program designed to restore prices back to economic levels.

http://www.repe.com.cn/web/news/news_detail.jsp?parentid=60&classid=159&infoid=4084

March QR suggests Lynas is superbly positioned to take advantage, there is a great deal of positive info in that report, incl marketing, and not least quantified indication of the above:

"announcement of a new stockpiling program by the China central government. If fully implemented, it will be larger than any of the previous four programs, with an estimated value of USD 1.4 billion, and is aimed at supporting ongoing supply and price recovery especially for NdPr and heavy Rare Earths materials."