Index
On February 16, 2022, the Shanghai Composite Index closed at 3465.83 points, up 0.57%; Shenzhen composite index closed at 13376.3 points, up 0.23%; The coal industry index closed at 2578.80 points, up 1.07%. The top three companies are: St Dayou, Jinneng Holding Shanxi Coal Industry Co.Ltd(601001) , Shanxi Coal International Energy Group Co.Ltd(600546) . The non-ferrous metals index closed at 5601.09 points, up 0.57%. The top three companies are: Anhui Xinke New Materials Co.Ltd(600255) , Guocheng Mining Co.Ltd(000688) , Shanxi Huayang New Materialco.Ltd(600281) .
Comments
The steel sector led the gains. With the end of the holiday and the warmer weather, under the current background of steady growth, the central government has set the tone to appropriately carry out infrastructure investment in advance, many policies are expected to begin to be fulfilled, and the demand for steel after the festival is expected to be released in advance. At the important time point of continuous development of infrastructure construction, the prices of key raw materials such as iron ore are kept within a reasonable range under policy regulation, superimposed with the current cost support, supply inhibition and demand release are imminent, and the steel fundamentals are about to recover. The production elasticity and profit margin of iron and steel enterprises deserve attention. Related subjects: Hunan Valin Steel Co.Ltd(000932) , Nanjing Iron & Steel Co.Ltd(600282) , Shanxi Taigang Stainless Steel Co.Ltd(000825) .
Rare earth themes led the increase. With the Ministry of industry and information technology recently released the first batch of total control indicators for rare earth mining, smelting and separation in 2022, China’s rare earth supply elasticity is decreasing, and the supply pattern is gradually becoming orderly, highly centralized and the global supply is gradually stabilizing. In terms of demand, under the background of global low-carbon and electrification, new energy vehicles, energy efficiency improvement of industrial motors, wind power, Siasun Robot&Automation Co.Ltd(300024) have replaced the past consumer electronics and become the main driving factor of the demand for rare earth permanent magnets, and the magnitude of demand has increased greatly. At present, restricted by resource conditions, the increase of rare earth supply mainly comes from light rare earth, China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) will continue to fully benefit from the simultaneous rise of volume and price in the industry. Under the background of the accelerated expansion of the demand for rare earth magnetic materials, the leaders of high-performance magnetic materials enterprises are relying on high-tech barriers to enhance the bargaining power of the downstream, and the moat is gradually deepening. With the formation of more centralized and orderly supply management in the future, rare earth prices are expected to continue to rise, and the growth attribute of rare earth sector exceeds the cyclical attribute. Related subjects: China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) , China Minmetals Rare Earth Co.Ltd(000831) , Jl Mag Rare-Earth Co.Ltd(300748) .
Industry dynamics
On February 15, the latest rare earth price index released by China Rare Earth Industry Association reached 426.8, continuing to create an all-time high. The average price of praseodymium oxide in January was 912100 yuan / ton, up 3.5% month on month; The average price of neodymium oxide was 1019700 yuan / ton, up 14.31% month on month. (China Rare Earth Industry Association)
Company dynamics
Yongxing Special Materials Technology Co.Ltd(002756) (002756): on February 14, Yongxing Special Materials Technology Co.Ltd(002756) announced that it planned to build a lithium carbonate project with an annual output of 20000 tons. The produced battery grade lithium carbonate is supplied to Contemporary Amperex Technology Co.Limited(300750) .
Risk tip: the macro-economy is less than expected, and the iron ore price regulation is less than expected.
