Lynas flags lower demand from Asian countriesPublished 5:15 AM, 1 Aug 2012 Last update 5:15 AM, 1 Aug 2012
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In releasing its quarterly report, rare-earths miner Lynas Corporation Ltd has warned of slowing demand from Asian economies, largely due to subdued macroeconomic conditions in China and falling rare earths prices, according to The Australian.
The company added that Japan, which is the world's largest export market for rare earths, was also displaying weaker manufacturing conditions brought on by lower demand in the transport equipment, chemicals and general machinery sectors, the newspaper added.
“This subdued macroeconomic backdrop has led many rare earths-consuming companies to manage their operations on reduced inventory,” Lynas said, according to The Australian.
“A recovery in global manufacturing activity and cyclical inventory re-stocking are expected to lead to increased demand for rare earths. However, the timing of this recovery remains uncertain.”
The company added that its plans to process ore from it West Australian mine at the $US200 million ($A190 million) advanced minerals plant in Malaysia have been strongly opposed by community groups who fear a repeat of health problems associated with a Mitsubishi refinery nearby that was closed in 1992, The Australian reported. ........................................................ http://www.businessspectator.com.au/bs.nsf/Article/Lynas-flags-lower-demand-from-Asian-countries-pd20120731-WQQH3?OpenDocument&src=hp16
LYC Price at posting:
82.5¢ Sentiment: ST Buy Disclosure: Held
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