22/01/2026

BIZ & FINANCE THURSDAY | JAN 22, 2026

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Lynas says govt policies are improving rare earths market MELBOURNE: Government policies around floor prices for rare earths have improved the function of the market and helped lift prices to sustainable levels, Amanda Lacaze, the CEO of Lynas Rare Earths said yesterday. Lacaze made the comments as the world’s top rare earths producer outside China reported lower production but higher revenue from sales of the materials critical for green-energy infrastructure, electric vehicles, smartphones and defence. Government policy is seen as a key driver of critical minerals markets this year, as nations seek to secure long-term supply separate from top producer China, and Lacaze’s comments highlight that policy action is having its intended effect. Additionally, the easing of China’s export controls has reduced a glut there, boosting the domestic Chinese benchmark against which Lynas sells much of its supply, she said in a call with analysts after Lynas released its second-quarter results. “I think everyone understands that the market settings remain positive, and in fact, in some ways, they’ve even become more positive during January,”Lacaze said. “(The) price continues to strengthen, and frankly, geopolitics continue to be our friend, although we are yet to finalise various agreements with governments, the policies which have been particularly implemented by the US government have already fostered more functional market dynamics.” Lacaze pointed specifically to the US government’s support of minimum prices for producer MP Materials and related discussions about support for floor prices between governments including Australia and the world’s top seven most advanced economies. The floor price policy discussions are the most important talks Lynas is having with governments, she said. They are crucial for the company to sell rare earths at a level competitive with its lower-cost Chinese rivals. “We don’t need governments to be buying our product. We need customers to be buying our product, and we need those customers to buy our product at prices that properly reflect the cost of doing business,” she said. Lynas reported a 43% rise in second-quarter revenue yesterday as the higher selling prices eclipsed a production shortfall caused by power disruptions at its ore processing plant in Western Australia. Shares rallied 6%. The average selling price for Lynas’ product range was A$85.60 per kg during the quarter, higher than A$49.20 per kg a year ago. The upbeat price sentiment has also spilled over to January, Lynas said in a statement announcing the earnings. The company’s total rare earth oxide output was 2,382 metric tons, lower than the 3,993 tons produced in the previous quarter, as power outages at its Kalgoorlie facility hampered production. Last year, Lynas said there had been an increase in power supply disruptions at Kalgoorlie, with outages in November causing significant losses in mixed rare earth carbonate production. – Reuters

Many Taiwan firms miss out on export boom

TAIPEI: Taiwan’s economy soared last year on skyrocketing exports of AI hardware and semiconductors, but companies in more traditional manufacturing sectors could only look on with envy as they were clobbered by US tariffs and a strong local currency. The island’s growth has for decades been based on overseas shipments of a range of goods including machinery, metals and chemicals, mostly small and medium-sized manufacturers employing thousands of workers. But the past 12 months saw companies in those sectors dealt a body blow as their goods sold into the United States were loaded with 20 percent levies as part of President Donald Trump’s global trade war, threatening people’s jobs. One area that was exempted, however, was semiconductor chips – a critical sector dominated by Taiwanese tech giant TSMC. That meant economic growth likely ballooned 7.4% last year, according to government estimates, which would be the fastest in 15 years. “We don’t really feel that

repayment of 60% of the principal be deferred by one year. Grace periods for the bond payments end on Jan 28 and Feb 10 respectively. “Approval of the 40% upfront payment plan for the two notes that were due in December last year now looks assured, allowing Vanke to avoid a substantive default in the first quarter,” said Yao Yu, founder of credit research firm RatingDog. “From the second quarter, a run of large bond maturities will put the property developer to the test,“ Yao added. Vanke will have notes worth two billion yuan maturing in each month of the second quarter. – Reuters of Commerce, told AFP. Taiwan’s reliance on AI has left some experts worried about the economic impact if the bubble of excitement around the technology were to burst. “That’s dangerous,” said Chen Been-lon, a research fellow and professor in the Institute of Economics at Academia Sinica. “But what can you do? You cannot force people not to invest in semiconductors.” Taiwan hopes its semiconductor industry remains protected from Trump’s tariffs after the trade deal with Washington committed Taiwanese chip and tech businesses to invest up to US$500 billion on US soil. However, a potential US Supreme Court ruling against Trump’s power to apply levies could upend the agreement. “If it’s unconstitutional... the current negotiated result may need to be redone,” said Wu Meng-tao, an economist at the Taiwan Institute of Economic Research, raising the risk of tariffs on the ICT sector. Many in Taiwan’s traditional manufacturing sector, including Litz Hitech, have put employees on unpaid leave or reduced their working hours. Wu, the sales director, estimates thousands are affected. Conditions for small and medium-sized manufacturers could get tougher in 2026 if the US Federal Reserve cuts interest rates. The Taiwan dollar, which has pulled back from its highs last year, could come under renewed upward pressure. Liu said he was “gritting my teeth and holding on” – and hoping that the government helped to “stabilise the currency”. But manufacturers also needed to move with the times by adopting AI and offering customers “comprehensive solutions”, said Patrick Chen, chairman of the Taiwan Machine Tools and Accessory Builders’ Association. “Simply selling standalone machines or individual pieces of equipment is a business model of the past.” – AFP

o Traditional manufacturers clobbered by US tariffs and strong local currency

On top of that, Wu said, the Taiwan dollar was stronger than the won, yen and euro, meaning Taiwanese exports are more expensive. “I don’t think there is a single Taiwanese machine toolmaker that can negotiate to absorb (the tariff) in full – maybe 2% to 3%, but absorbing everything is impossible. Our company can’t absorb even 1%.” The information and communication technology (ICT) sector, which includes semiconductor chips, has become by far the biggest driver of the island’s export-dependent economy. Data for last year laid bare the stark difference in fortunes for tech and more traditional industries, with ICT exports soaring, while metals, plastics and metal-cutting machine tools were all lower. “Last year’s situation was miserable, very miserable,” Jerry Liu, chairman of the Taichung Importers and Exporters Chamber

growth,” Chris Wu, the sales director of machine toolmaker Litz Hitech Corp in Taiwan’s manufacturing hub of Taichung, told AFP. “Overall the data looks strong, but for traditional industries, and for our company in particular, exports have declined – we’re down 30%.” Trump initially announced a 32% tariff on Taiwanese exports, which was later lowered to 20%, as part of his sweep of measures against dozens of trade partners last April. A trade deal announced last week cut that again to 15%, in line with key manufacturing rivals South Korea and Japan. While it was good news for traditional manufacturers, Wu said it was not a panacea. Overseas demand for Litz Hitech’s precision tools and processing machines has not recovered, and a 15% tariff is still nearly three times the company’s profit margin.

Visitors watch a wafer shown on screens at the TSMC Renovation Museum at the Hsinchu Science Park in Taiwan. – AFPPIC

China Vanke wins support for bond repayment plan HONG KONG: China Vanke said yesterday it had gained creditor approval to defer some repayments soon to be owed on a 1.1 billion yuan (RM647 million) puttable bond, likely helping the state-backed property developer stave off an imminent default. bonds by offering to pay 40% of principal as well as additional collateral, after bondholders resoundingly rejected earlier plans. The 1.1 billion yuan bond with a January 2028 maturity date has a put option that allows creditors to demand repayment of the principal today.

on the news. One of China’s best known real estate developers with some US$50 billion in debt, Vanke has now taken centre stage in the country’s five-year-long property sector crisis that has seen many of its peers, both big and small, default on payments. A default from Vanke, which has many projects in top-tier cities, could knock homebuyer confidence, dealing a likely blow to the world’s second-largest economy which is grappling with sluggish growth and weak consumer confidence. Vanke surprised the market last week with sweetened proposals to defer repayments for the three yuan

The embattled firm is also negotiating with creditors about payments for two other yuan bonds that matured last month, and this deal – the biggest concession so far from bondholders – bodes well for those discussions. Vanke’s onshore bonds made gains and its Hong Kong and Shenzhen-listed shares climbed 2%

Under the deal, 90% of creditors agreed to defer payment of the remaining 60% of the principal by a year. Creditor voting on two other onshore bonds worth a combined 5.7 billion yuan started yesterday and will conclude this week. Vanke is also seeking to have the