LYC 0.73% $6.11 lynas rare earths limited

This is one resilient Stock, page-33

  1. 1,633 Posts.
    Ausheds,

    This is another example of you posting detailed events as though they are important, which will probably have little or zero effect on LYC's REE prices and share price.

    All of these changes that have occurred, will IMO only benefit the Chinese sanctioned RE producers (which BTW is why large flows of capital into their shares occurred recently) and the end user industries inside China. Not the ROW IMO!

    These changes and other changes to the tax regime, also explains why there has been price increases (only in China) for some REE's. While the same element prices in US$ for the ROW have not seen any change in any major currency! Link to follow to see for yourself -
    (http://www.metal-pages.com/metalprices/rareearths/)

    Unfortunately for LYC and the ROW it is a well documented phenomena that a strong US$ results in lower world commodity prices, that includes REs! Over the last two years this can be seen across the entire materials and energy sectors so really what LYC holders should be hoping for is a weaker US$, not the Chinese RE industry being better managed to the benefit of the Chinese people.

    Naturally when the US$ declines commodity currencies like the A$ will tend to appreciate along with the price of REs. If LYC is still a mainly Australian company when this occurs it should benefit.
 
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