Frustration?, page-11

Agreed, good article, not too optimistic on RE prices in the immediate future but I did glean a couple of things...

First of all, I didn't realize that 90% of Japan's RE's are imported from China and it is China's "largest beneficiary" of (cheap) RE's. This would indicate to me that securing a reliable future supply outside of China is critical for Japan...

That said, the price Japan is paying Lynas for RE's may significantly differ from the China "spot price" we all watch on various info sources. There is no reason that Lynas can become a "market maker" and set their own price for their product in long term deals. This will do wonders for the stability of revenues and consistent earnings...

Secondly, it did seem that the Chinese sentiment seems just a bit jealous when they were talking about Japan's purchase of "cheap" RE's...

"By importing low-cost rare earth materials from China and then selling the processed high-tech products, Japan can make huge economic gains. Because after processing rare earth prices are often comparable to gold and diamonds."

It hard to predict where the prices of RE's will go but there are many factors that drive them and in my experience jealousy can do strange things... JMHO...