Increasing contradiction between supply and demand in rare earth industry?

recent news of rare earth industry

Recently, Baotou Municipal People's government held a press conference in Hohhot to introduce the preparations for this year's rare earth industry forum. Wu suhai, deputy director of science and Technology Department of Inner Mongolia Autonomous Region, said that in terms of rare earth trading, Inner Mongolia Autonomous Region will build the world's largest rare earth trading center, promote the upgrading of "rare earth exchange (Baotou rare earth products exchange)" to a national exchange, and build a rare earth industry pricing center, information center and service center.

Or under the influence of this news, some leading rare earth varieties soared in the late trading. As of the latest closing, Rising Nonferrous Metals Share Co.Ltd(600259) , China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) and other stocks rose more than 2%. in addition, bibcock also began to raise the price of rare earth products. China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) announced the listing price of rare earth products in December. Among them, lanthanum oxide was quoted at 10800 yuan / ton, cerium oxide at 10800 yuan / ton, which was the same as that of the previous month. Praseodymium and neodymium oxide were quoted at 816900 yuan / ton, up 7.12% from the previous month, neodymium oxide was quoted at 892000 yuan / ton, up 12.64% from the previous month, metal praseodymium and neodymium was quoted at 995000 yuan / ton, up 6.99% from the previous month, and metal neodymium was quoted at 1085000 yuan / ton, up 12.44% from the previous month.

Recent rare earth industry can be described as frequent events. On December 6, according to media reports, China has approved the establishment of the world's largest rare earth company. The new company will be named China rare earth group and will be established in Jiangxi Province as soon as this month. It is composed of rare earth assets of many state-owned enterprises, including China Minmetals, Chinalco and Ganzhou rare earth group.

The policy side supports industry integration and supports prices. At the same time, under the background of carbon neutralization, rare earth will also play an increasingly important role, such as the use in the new energy vehicle industry and the demand for rare earth in energy-saving motors. According to the data of China Rare Earth Industry Association, on December 13, the rare earth price index was 339.6, another multi-year high.

Northeast Securities Co.Ltd(000686) believes that the year-end indicators are tight, the supply shrinks, and the contradiction between supply and demand may intensify. 1) On the supply side, at the end of the year, the overall indicators were insufficient, the market was short of raw ore, some separation enterprises reduced production, a few enterprises were limited at the same time, and the operating rate fell to less than 50%; Some Sino Myanmar ports are open, but the failure to export auxiliary materials and manpower shortage may still restrict the large import of Myanmar minerals. 2) On the demand side, downstream businesses have strong replenishment mood before the Spring Festival. Therefore, in the short term, the contradiction between supply and demand may further intensify, and the driving force for the rise of rare earth prices is sufficient. 3) In the long run, rare earths are at the starting point of a new era of supply and demand reconstruction, and the valuation system is being reconstructed. Rare earth is expected to reproduce the logic of high demand for lithium and cobalt new energy in history in the future, and its supply side is even better than lithium and cobalt, so as to grasp the opportunity of revaluation of core asset prices with global pricing power.

institutions pay attention to rare earth permanent magnet concept stocks

On the whole, there are more than 20 stocks in the concept plate of rare earth permanent magnet in the A-share market. of which Chengxin Lithium Group Co.Ltd(002240) has the highest rating list of 11 agencies. in addition, Jl Mag Rare-Earth Co.Ltd(300748) , China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) , Inner Mongolia Baotou Steel Union Co.Ltd(600010) , Tdg Holding Co.Ltd(600330) and other stocks are rated by more than 3 institutions.

In terms of specific concepts, China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) is the largest supplier of light rare earth products in China and even the world, and one of the six rare earth groups in China's rare earth industry. The company mainly produces and operates rare earth raw material products, rare earth functional material products and some rare earth terminal application products.

Rising Nonferrous Metals Share Co.Ltd(600259) is the only rare earth listing platform of Guangdong rare earth industry group, one of the six rare earth groups. It actually controls the only four rare earth mining warrants (including the custody enterprise Guyun mine) in Guangdong Province and is the only legal rare earth miner in Guangdong Province.

Baiyan OBO mine under Inner Mongolia Baotou Steel Union Co.Ltd(600010) is a world-famous resource treasure house. The proven iron ore reserves are 1.4 billion tons, 175 minerals and 73 elements have been found, and the rare earth reserves rank first in the world.

According to the unanimous prediction of institutions, the net profit of some stocks is expected to grow rapidly this year, next year and 2023. Specifically, the three-year net profit growth of China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) , Sinomag Technology Co.Ltd(300835) and other stocks is expected to exceed 30%, and the three-year net profit growth of Chengxin Lithium Group Co.Ltd(002240) , Jl Mag Rare-Earth Co.Ltd(300748) , Tdg Holding Co.Ltd(600330) and other stocks is expected to exceed 20%.

Industry Research Report

Huachuang Securities: lithium strategic scarce resources continue to recommend rare earth permanent magnets to meet the historical inflection point

Northeast Securities Co.Ltd(000686) : the production and sales of new energy vehicles continued to increase in November, and the contradiction between supply and demand of lithium cobalt rare earth is difficult to solve

(data treasure)