China Syndrome
Mate you know that Rob always uses an assumed "Ex China REO" selling price. Until an Ex China selling price is in place, very few REO projects will be able to be built as the Chinese selling prices for RE's is well below what will be required in most RE projects world wide. It will be very unusual for an Ex China RE selling price to occur but it seems clear that the western world is very uncomfortable with the current situation where Chinese companies have a strangle hold on the supply of RE's to the entire world.
It will be interesting to see what plays out in the next few years. However it would seem highly likely that the NATO nations in particular will demand that an ex China supply chain for REO's be established sooner rather than later. The race is currently on in Europe and the USA to commence recycling RE's from things like spent magnets and decommissioned batteries. That will not be enough supply to satisfy all of the world's demand for RE's.
Chrs W2
IXR Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
