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Goldman Sachs analysts predict a glut in rare earth supplies by 2013 as new mines open to take...

Goldman Sachs analysts predict a glut in rare earth supplies by 2013 as new mines open to take advantage of massive price increases. The bank's view is in direct contrast with rare earth producer Lynas (LYSCF.PK +6.9%) who says the world's major exporter (China) is on the verge of becoming a net importer. MCP -3.7%, AVL -7.0%.
Comments (3)
  • stockferret
    , contributor
    Comments (119) | Send Message
     
    Goldman sold MCP (Market cap $6B) for $100 million a couple of years ago. I'm pretty sure they are the last people on earth that should be considered REE experts...
    5 May 2011, 06:16 PM Reply Like
  • johnjd53
    , contributor
    Comments (8) | Send Message
     
    Goldman is partially correct in that current RE prices are not sustainable once some of the new mines come on. However, they are very shortsighted in their analysis. Firstly, many of the proposed mines will not come to fruition in the time frame mentioned, if ever. Secondly, many of the "green" technologies being developed/introduced worldwide depend on at least the RE elements Nd, Pr and Dy. The demand caused by these developments will tend outstrip the growth in supply for the next 5 - 10 years.
    6 May 2011, 10:01 AM Reply Like
  • Gualtero
    , contributor
    Comment (1) | Send Message
     
    What is the view of Brian Kelly and others about how to play MCP this week in light of: (1) earnings on Tuesday, (2) end of lock-up on Wednesday?
    7 May 2011, 11:27 PM Reply Like
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