The key question for me regarding Lynas is why are they not selling their NdPr at higher prices?
From the latest quarterly:
"Our pricing offer reflects the high demand for these products outside China rather than the market index which is based on inside China transactions."
But from the prices seen...they are not much higher?
It doesn't quite add up.
Lynas is the ONLY large-scale producer of NdPr oxide outside of China. That alone should give it leverage. Its product should be commanding a premium. But instead, Lynas is still selling at about Chinese spot prices.
Why?
In my opinion, the issue sits squarely with management.
Lynas has a premium product—but they're not doing enough to sell it as such. Here's what they’re failing to capitalise on:
So the big question is: Why is Lynas management failing to extract a large premium for a product that clearly deserves one?
If they're not going to lead the charge in defining ex-China rare earth pricing, who will?
OR - have i got this wrong...and this is just the start? Prices ex-China will keep going up?
Would love to hear others’ takes—especially from anyone who’s seen evidence of how (or if) Lynas is pitching its value to OEMs. Any customer pitch decks out there you can email me?
Has anyone heard any of the reasons that management give for not being able to extract better NdPr prices?
From the latest quarterly:
"Our pricing offer reflects the high demand for these products outside China rather than the market index which is based on inside China transactions."
But from the prices seen...they are not much higher?
It doesn't quite add up.
Lynas is the ONLY large-scale producer of NdPr oxide outside of China. That alone should give it leverage. Its product should be commanding a premium. But instead, Lynas is still selling at about Chinese spot prices.
Why?
In my opinion, the issue sits squarely with management.
Lynas has a premium product—but they're not doing enough to sell it as such. Here's what they’re failing to capitalise on:
- Lynas offers stable, geopolitically insulated supply. It’s not subject to the whims of the CCP, nor caught in the web of Chinese export restrictions. That’s a major strategic advantage—especially for Western buyers trying to de-risk their supply chains.
- Contracts with Lynas are backed by the Australian and Malaysian legal systems—transparent and enforceable. There’s genuine recourse if something goes wrong, unlike with many Chinese suppliers. For multinationals, this kind of legal certainty is worth paying for.
- Compared to most Chinese producers, Lynas actually reports ESG metrics, adheres to environmental regulations, and is accountable to public shareholders. For downstream customers under investor pressure or regulatory scrutiny, this is gold.
So the big question is: Why is Lynas management failing to extract a large premium for a product that clearly deserves one?
If they're not going to lead the charge in defining ex-China rare earth pricing, who will?
OR - have i got this wrong...and this is just the start? Prices ex-China will keep going up?
Would love to hear others’ takes—especially from anyone who’s seen evidence of how (or if) Lynas is pitching its value to OEMs. Any customer pitch decks out there you can email me?
Has anyone heard any of the reasons that management give for not being able to extract better NdPr prices?
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