The rare earth permanent magnet concept index rose more than 2% today, ranking at the forefront of the concept sector. Since December last year, the rare earth permanent magnet sector has experienced a correction. By the Spring Festival, the sector index had fallen by 24.63%. The concept of rare earth permanent magnet rebounded significantly after the Spring Festival, and has increased by nearly 10% since the Spring Festival. Today, Innuovo Technology Co.Ltd(000795) once rose strongly, and China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) , Yantai Zhenghai Magnetic Material Co.Ltd(300224) , China Minmetals Rare Earth Co.Ltd(000831) rose one after another.
On the news side, rare earth prices have continued to rise recently. According to the statistics of China Rare Earth Industry Association, on February 15, the rare earth price index was 426.8, up 6.2 points from the previous day, hitting a record high in a row, up 24.78% from the beginning of this year. the price of light rare earths has risen from 930000 yuan per ton to 1.1 million yuan per ton after the festival, and the cumulative increase has reached 18% after the Spring Festival.
with strong demand and tight supply, the industry welcomes the reconstruction of new machines
The main reason for the high price is the strong demand and tight supply. China has implemented total amount control and management on rare earth mining since 2006. On January 28 this year, the Ministry of industry and information technology and the Ministry of natural resources disclosed that the annual mining quota of the first batch of rare earths was 100800 tons, an increase of 20% over the first batch of mining quota in 2021, and the growth rate was the same as that of last year.
According to the analysis of insiders, the supply of rare earth ore raw materials and recycled waste in the upstream is very tight. This is mainly due to environmental protection and strategic resource policy control and other factors. The increment of rare earth mining indicators in China is limited, which is difficult to match the downstream demand for rare earth products expanding year by year. Separation and smelting enterprises rely more on imported rare earth mines.
In fact, China is the world’s largest reserve and exporter of rare earths. In 2020, China’s rare earth supply accounted for nearly 90% . On September 23 last year, China said that the rare earth reserves confirmed by exploration accounted for about 41.36% worldwide, which was enough to make China’s rare earth reserves lead the world. In order to improve the supply-demand relationship of rare earth related industries, standardize the rare earth market pattern and improve the control of the rare earth industry, China’s rare earth industry has also ushered in new opportunities for reconstruction.
In December last year, the rare earth sectors of Chinalco group and Minmetals Group were restructured and a new central enterprise, China rare earth group, was established. Under the new development pattern, the establishment of China rare earth group is conducive to solving the problems restricting the high-quality development of rare earth enterprises, such as the imbalance of rare earth industry chain structure, the serious lag in the development of rare earth deep processing, and the application and promotion of new technologies and new products, so as to better ensure the improvement and upgrading of traditional industries and the development of strategic emerging industries.
funds add positions to multiple concept stocks
According to the statistics of securities times and databao, since the Spring Festival, 25 stocks in the concept of rare earth permanent magnet have gained different increases, 12 stocks have increased by more than 10%, and Innuovo Technology Co.Ltd(000795) , China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) have increased by more than 20%.
In terms of capital, since this week, the inflow of main funds into the concept of rare earth has been obvious, and the cumulative net purchase of more than 50% of stocks has recorded a positive value. Among them, China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) , Innuovo Technology Co.Ltd(000795) , Inner Mongolia Baotou Steel Union Co.Ltd(600010) , Chengxin Lithium Group Co.Ltd(002240) have obtained more than 200 million main net purchases this week, and the net purchase amount of China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) is the highest, reaching 908 million yuan.
At present, 16 shares have issued performance forecasts or express reports. According to the median value, all 16 have achieved profits, and have achieved growth year-on-year. The performance of 10 shares including Chengxin Lithium Group Co.Ltd(002240) , Inner Mongolia Baotou Steel Union Co.Ltd(600010) , China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) , Shenghe Resources Holding Co.Ltd(600392) , Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) , Earth-Panda Advanced Magnetic Material Co.Ltd(688077) increased by more than 100% year-on-year.
