Yes shipments are down. China demand up. No where does this article show any linkage between two. WW production of cars is EVs is flat. more important than that two of the worlds largest EV manufactures are close to 100% exclusive from China. Either buying Complete motors or at least complete armature assemblies. They are Tesla and VW. So looking at just REEO exports can be misleading because It does not include finished products.
Read Yang Jiawen, an analyst at Shanghai Metals Market (SMM). comments there were several things that may have tipped the scales the last few weeks.
Short term this has the potential to help Lynas if they can increase production rates quickly. Long term it increases the significance of China which will not be good for Lynas
This will not be the first. The current price of REEO will hurt many. Most new plants are carrying lots of debt. why not declare bankruptcy remove most or all the debt and restart after prices recover. The same factors that caused this decision to shut down the new facility will also impact Lynas's Revenue and profits and I think a sharp SP drop will result. If you do not think so I would like you to explain why so I can consider it.
LYC Price at posting:
$6.80 Sentiment: None Disclosure: Not Held
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