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Highlights:
- The worst performing Materials sector could not impact Lynas’ share price negatively, rather the firm’s shares have been posting considerable gains on the ASX today.
- Though, there is no price sensitive announcement, talks at Sydney Energy Forum, suggesting additional investment in rare earths and renewables likely has influenced the shares.
- Lynas is looking forward to emerge as one of the leading global suppliers of rare earth elements.
Australian rare earth concentrate producer Lynas Rare Earths Limited (ASX:LYC) opened trading in the green territory today (15 July). Yesterday also, the company experienced a strong push in its share price on the ASX. Today, Lynas shares were spotted trading 1.600% up at AU$8.250 apiece at 12:45 PM AEST.
Yesterday, Lynas shares posted more than 6% gains on the ASX.
What is pushing Lynas’ share price on the ASX?
Although yesterday the S&P/ASX 200 Materials sector was one of the top gaining sectors on the ASX and might have impacted Lynas’ share price on the ASX. Today the picture has completely flipped as the Materials sector is the worst performing sector on the ASX 200 index today.
The S&P/ASX 200 Materials sector (INDEXASX:XMJ) is 3.20% down at 14,326.10 points at 1:06 PM AEST on the ASX today (15 July).
Therefore, it brings us to another significant factor that might be pushing the share price of Lynas today. According to some media reports, China’s monopoly in the global rare earth market is threatened now.
Image source: © Milslav78 | Megapixl.com
China controls more than 80% of the global supply of rare earth elements. These elements are required for developing smartphones, electronic vehicles, military weapons, etc. However, at present several countries are breaking ties with China which opens opportunities for other non-China rare earth elements producing companies like Lynas.
Also, on Wednesday (13 July), at a forum, International Energy Agency’s executive director Dr Faith Birol had advised countries like Australia and the US to ramp up their independent global rare earth elements supply chain as soon as possible.
Glimpse of Lynas’ share price movement on the ASX:
Lynas shares have performed exceptionally well on the ASX in the past 12 months despite facing COVID-19-related challenges and other geopolitical challenges. Lynas’ share price appreciated by more than 35% on the ASX in a year.
However, Lynas’ shares have lost more than 25% on Y-T-D basis (as of 12:55 PM AEST)
