LYC has never stated that they only get the Chinese domestic prices for their RE products. Basically because the FOB has usually been better and their price is related to LT contracts which remain "commercial in confidence"!
Shrouded in the uncertainties of LYC's reports IMO its a "long bow" to automatically assume because of the increased taxes in China that LYC will benefit, because LYC do not sell most of their product into China and never have!
However I do agree increased real price margins for REE generally will effect LYCs profit performance eventually, even if increased local taxes don't. When real improvement happens we should see the price increase in FOB as well as domestic, not just the one that plots the tax changes in China.
Until LYC actually release either a definitive statement saying they are achieving better prices and margins for their product then IMO your reasoning is nothing more than pure speculation or wishful thinking IMO. Even if it may eventually come true.
LYC Price at posting:
5.0¢ Sentiment: None Disclosure: Not Held
(20min delay)