My comments derive from the charts you posted in response to allegations of manipulation specific to LYC. I agree with you on that count BTW.
Having read reports of the actual number of producers in China (110plus) and their reported actual production capacity approx 300,000Mtons/pa of REO Eq before the Chinese government artificially reduced their actual production with pollution controls and quotas to values that even now exceed total worldwide demand. I can surmise why on every chart the patterns appear similar and the value now is always less than Jan 2010.
Sure there may have been some short term gains in prices and orders for LYC and Moly but I suspect that could also be artificial and due to tighter enforced quotas with some permanent production shutdowns in China.
This would also to some degree explain the continued presence of the LT downtrend in LYC's SP despite the seeming success in the ramp up.
There has to be some reason for the same thing to be seen in SP's across the RE industry and this seems to be the best explanation out there to me. If true, it would mean that both TA and FA have a route cause for what is happening industry wide....
LYC Price at posting:
29.5¢ Sentiment: LT Buy Disclosure: Not Held
