PU, Japan were reported as exporting RE to Sth Korea 2nd half last year which suggests they are still working thru stockpiles
IMCOA projects Japan RE demand growing from 18kt 2012 to only 20kt 2016 whereas US projected 11.5kt to 25.5kt in the same time frame.
Japan's MTC is a little more optimistic growth wise but clearly illustrates the demand destruction from 33kt 2010, at the signing of the Sojitz deal, to 21kt last year.
"In time, the down cycle will reverse", totally agree and Lynas's objective has always been to build it's own LT market with reliable supply to customer spec, my only query is will there be sufficient demand over FY14 to generate the kind of sales numbers we're anticipating?
Great to see some indications that the US growth predictions have some foundation, and the flow thru effects to the world's largest consumer market would be a double positive.
Question is, when will investment markets start to focus on the cyclical shift?
LYC Price at posting:
59.5¢ Sentiment: LT Buy Disclosure: Held
