SYR 5.00% 21.0¢ syrah resources limited

Just as an interesting thought ... I recently read an article...

  1. 45 Posts.
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    Just as an interesting thought ... I recently read an article about rare earth metals and the Chinese dominance in that market. The article said that the Chinese companies would:
    1. Buy up the product from outside China in big quantities to empty out the market
    2. Sell the product to consumers at a lower price than what they bought it for
    3. Consumers choose not to buy from the original company because they can get it cheaper from China
    4. Chinese companies squeeze the price down until the ex-China companies become desperate
    5. ex-China companies become unprofitable and get bought up by Chinese companies

    It's unethical business practice, but Chinese labor costs and government incentive make it a viable practice in China, but nowhere else.
 
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