The Lynas Corporation Ltd (ASX: LYC) share price has bounced around heavily over the past few years, with its regulatory problems in China offsetting rising demand and prices for its rare earth products. In fact, shares have gone from 47 cents in April 2015 to $2.60 today, after bolting 10% higher out of the blocks this morning.
The shares are reportedly up on news reports that China is considering banning the export of rare earths to the US, as trade barriers climb between the two superpowers. China is the world's largest producer of rare earths—if it stopped exporting to the US then rare earth prices are likely to rise. Lynas produces its rare earths in Malaysia, so would not be affected by any ban and would possibly see rising demand for its product out of the large US market.
Today, Lynas stock hit a 52-week high of $2.66 in response to the news, although it still faces regulatory problems in Malaysia.
