Molycorp Inc MCPIQ

Amazing Watershed Moment?!

[freedom457]

I just noticed this evening that REE history has been made today with respect to the ever increasing pricing of Rare Earths.

For the very first time ever, a number of Domestic (What Chinese manufacturers pay for REE in China) prices have just skyrocketed past the FOB Spot prices (What the rest of the world pays for REE outside China).

In the past Domestic prices have usually stayed between 50-70% less than the FOB Spot pricing...but now since the beginning of June some Domestic pricning has absolutely defied gravity.......Check out Europium, Terbium and Dysprosium below....


IE:             Eu FOBSpot Price             $3,190
                        Domestic                     $4,113

                Tb FOB Spot Price             $2,910
                        Domestic                     $3,169

                Dy FOB Spot Price             $1,485
                        Domestic                     $1,581



The implications of this are huge because up till now analysts have been valuing REE companies based on the Domestic prices and discarding the use of FOB Spot Price in their DCF models as it was thought these higher levels were unrealistic and the companies would never see these levels of pricing...


If these new pricing levels that these three REE have just experienced spread to the rest of the 14 other Rare earth elements and become the new reality, then this market is about to explode!

The share price valuations bandied about for the front running REE juniors will be thrown out the window and the most optimistic pricing scenarios that people have scoffed at, may become a new reality a lot sooner than most people realize.


Unbelievable!