Image Source: © Transversospinales | Megapixl.com
- Lynas Rare Earths Limited’s share price has lost over 6% in last one week.
- LYC shares follow the broader sectoral trend as ASX300 Metals & Mining Index (XMM) that is also buzzing in red zone.
- The company stock is also on investors’ radar as LYC will be sharing its quarterly results on 12 April 2022.
ASX-listed Lynas Rare Earths Limited’s (ASX:LYC) share price reversed its past five-day gains in today’s session. Even on Wednesday, the share price fell despite the company making any new price sensitive announcements closing mid-week trade at AU$10.10 a share down around 5.9% from Tuesday’s close.
Today, at around 10:30, LYC was spotted trading 1.090% down at AU$9.990 per share.
Why is LYC share price on the down roll?
The Australian rare earths producer competes with Chinese suppliers globally for the supply of rare earth metals. These rare earth metals are recently highly in demand as they play an important role in the energy transition to batteries.
However, Lynas focuses on rare earths like Neodymium-Praseodymium (NdPr), whose price has been tripping since last 30 days. Since March beginning the price of NdPr has lost over 12% in value. The NdPr price seems to be falling on the West trying to counteract on China’s dominance in the sector in response to its support to Russia in its invasion of Ukraine.
Another addon to the tripping LYC share price comes from the metal and mining sectoral fallback today. Even the ASX300 Metals & Mining index (XMM) is down, taking major miner’s share prices into the red. Today, at 10:27 AM AEST, it was at AU$6353.800, down 0.112%.
It looks like even LYC shares faced the sectoral heat.
Recent performance of LYC share price on the ASX-
Image Source: © 2022 Kalkine Media ®
Image Description: Recent share price performance of LYC
In the near-term LYC shares have remained in the red zone and the share price has clearly not appreciated in tandem to the demand of its produce. LYC share price rather seems to be moving in line with the NdPr price which seems to be on a free fall since March 2022.
Road ahead for Lynas
Further Lynas Rare Earths Limited is to soon announce its quarterly results for the period ending 31 March 2022. As per Lynas’s recent announcement, the results are expected to be out on 12 April 2022. How the share price moves post results would be worth observing and the future of the rare earth provider’s shares will only be determinable with time.
More from Metals- Syrah (ASX:SYR) announces FID on solar battery system
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and