Oh sorry, i made a postwhile i was walking around the city on...

Oh sorry, i made a postwhile i was walking around the city on New Years Day.

I think Aushed and Lei made the main point of what i was trying to explain. You can't simply say blankets statements with a broad brush saying light ree is in over supply. There is some truth to the statement in term of Cerium or Lanthanum is over supplied but its more complicated then that.

You have to think about Lynas more of a Neodynium and Praseodymium producer which is true because Lynas is the world largest outside producer of Neo/Prae.

My question to you is do you think Neo and Prae is in over supply?

Keep in mind for buyers to buy Neo from Lynas and China, there needs to be demand for Cerium and Lanthanum because the REE ore been processed is stripped into many components and Lynas wont make Neo and Prae unless there have filled orders for Lan and Cer. So as Lan and Cer goes down the price (as stipulated by the poster due to lack of demand)of Neo and Prae goes up higher and higher. CHina is of the same attitude.

Do you get what i am trying to explain?

ANd how Lynas solves this problem is by forming long term relations ship with RHodia and BASF who will demand all the Cerium and Lantanum LYC can produce. So by having the Cer and Lan tied up into long term deals allow Lynas to make the Neo and Prae which is the more valuable REE.

Focus of what Aushed has said

"
Gotta laugh at the current popular fad of disparaging LRE when not only is it far & away the volume end of the business but also flows to the demand segments with the highest CAGR's, Nd/Pr & La to magnets, batteries & FCC, with the first two also being the highest value add segments = pricing power."

and what Lei said:

"So the most important thing is how to balance RE price(Not just to balance supply and demand) and both sides should take care of each other, let the other side to have a "reasonable profit", RE price of skyrocket or slump will hurt this industry(supply and demand)of upstream /downstream, only beneficial for speculators, this is more like as the art of survival."