molycorp killing the sector, page-2

Yep Shim Moly down by a half in a month to under ten bucks in the U.S on Friday. This has put shivers through the market with a roll on to Lynas and others and also affecting us without a doubt.

As to if Moly will make it or not it may end up depending on if the U.S Gov steps in. I dont think U.S economists and military will want to stay reliant on Chinese REEs into the future.

You would think uncertainty on the future of Moly and Lynas would have contributed to positive sentiment to the next cabs off the ranks like PEK but it has had the opposite result. If it had been a mature well understood resource sector and major competitors were held up it would bode well immediately for those next in line.
The REE sector is far more skittish and too many investors wrongly think the Moly or Lynas hold ups herald a poor future for the sector. IMO it only adds to supply pressure and with demand unlikely to wane singificantly this can only help PEK longer term.

The marco issues are very important and worth keeping a close eye on for serious REE investors. Circumstances are not so different this time( with tensions between China and Japan growing and new REE supply being held up)to last time when REE prices went balistic. It may not happen this time but investors need to keep abreast of the news.

Tretch