After several key rare earth enterprises were interviewed, the rare earth market cooled down and the price also fell slightly.
On March 7, the rare earth permanent magnet sector closed down 2.15% to 2042.8 points, with a total turnover of 26.939 billion yuan and a turnover of 2.45%. Seven rose and 47 fell Jiangsu Huahong Technology Co.Ltd(002645) , Hengdian Group Dmegc Magnetics Co.Ltd(002056) , China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) , China Minmetals Rare Earth Co.Ltd(000831) , Hunan Yujing Machinery Co.Ltd(002943) , Jonjee Hi-Tech Industrial And Commercial Holding Co.Ltd(600872) and other stocks fell by more than 4%.
On the news, on March 4, the Department of raw materials industry of the Ministry of industry and information technology said that in view of the continuous rise and high market prices of rare earth products, the rare earth office interviewed China rare earth group, China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) group, Shenghe Resources Holding Co.Ltd(600392) and other key rare earth enterprises on March 3.
The meeting required that relevant enterprises should earnestly enhance their awareness of the overall situation and responsibility, correctly grasp the current and long-term, upstream and downstream relations, and ensure the safety and stability of the industrial chain and supply chain; We should strengthen industry self-discipline, further standardize the production and operation, product trading and trade circulation of enterprises, and shall not participate in market speculation and hoarding; We should give full play to the leading role of demonstration, promote and improve the pricing mechanism of rare earth products, jointly guide product prices to return to rationality, and promote the sustainable and healthy development of rare earth industry.
rare earth price doubled
Behind the rare earth office interview is the soaring price of rare earth. According to the data of China Rare Earth Industry Association, the rare earth price index has opened an upward channel since the second half of last year, rising from the low of 200.91 points on June 25, 2021 to 430.97 points on February 24, 2022, a record high, with an increase of 114.51% in eight months. In April 2020, the rare earth price index was less than 130 points, which has tripled so far.
Looking at the price of specific rare earth products, in April 2020, the average price of praseodymium and neodymium oxide was only 261400 yuan / ton, and the average price of metal praseodymium and neodymium was 331300 yuan / ton; Among heavy rare earths, the average prices of dysprosium oxide and dysprosium iron are 1787700 yuan / ton and 1774100 yuan / ton respectively.
By February 2022, the average price of praseodymium and neodymium oxide had reached 1.0598 million yuan / ton, up 15.79% month on month, which was the first time that it had exceeded the million mark since 2012. The average price of metal praseodymium and neodymium rose to 1.3060 million yuan / ton, up 16.54% month on month; The average price of dysprosium oxide was 3.1078 million yuan / ton, up 4.19% month on month, and the average price of dysprosium iron was 3.0978 million yuan / ton, up 4.24% month on month.
Rare earth prices rose, the driving force is still the mismatch between supply and demand The Pacific Securities Co.Ltd(601099) Securities pointed out that at present, there is a strong demand in emerging fields such as new energy vehicles and wind power, the orders of large magnetic material enterprises have increased significantly, and the increment of rare earth supply is limited, showing a situation of low inventory in the downstream and reluctant sale in the upstream. On the whole, maintaining the stability of rare earth prices is conducive to the sustainable development of the industrial chain, and the policy oriented trend of changing the profit distribution of the upstream and downstream of the industrial chain has also been formed.
In an interview with the reporter of the international finance news, relevant persons of several rare earth listed companies said that “they have not seen the substantive impact for the time being and have not received the notice of price reduction”. However, the current market price has fallen slightly. China Rare Earth Industry Association disclosed that the rare earth price index was 429.3 on March 7, down 0.1 points from last Friday.
In addition, according to the monitoring data of business society, on March 7, the price of light rare earth in China fell, the price of metal praseodymium and neodymium fell by 5000 yuan / ton to 1.36 million yuan / ton, the price of praseodymium and neodymium oxide fell by 5000 yuan / ton to 1.1 million yuan / ton, and the price of neodymium oxide fell by 10000 yuan / ton to 1.21 million yuan / ton; In terms of heavy rare earths, the price of dysprosium oxide was 3.1 million yuan / ton, down 1.12% this week, and the price of dysprosium ferroalloy was 3.095 million yuan / ton, down 1.12%.
how to go in the future
Rare earth is the general name of scandium, yttrium and lanthanide 17 metal elements with similar properties in the periodic table of elements. It is known as “industrial vitamin” and “industrial gold”. Due to its special magnetic and optical properties, it can improve the production efficiency and storage efficiency of electronic products. Rare earth has been widely used in petroleum, chemical industry, textile, ceramics, glass, new materials and other fields.
At present, China’s rare earth production is strictly controlled. According to the relevant documents of the Ministry of industry and information technology and the Ministry of natural resources, “rare earth is the product of total production control and management implemented by the state, and no unit or individual shall produce without and beyond indicators”. On January 28, the Ministry of industry and information technology and the Ministry of natural resources issued indicators. The total indicators of the first batch of rare earth mining, smelting and separation in 2022 were 100800 tons and 97200 tons respectively, compared with 84000 tons and 81000 tons in 2021, with a year-on-year increase of about 20%.
The business agency said that China’s rare earth market price has slightly corrected, the on-site supply gap still exists, the metal factory starts normally, and the demand remains stable, but the downstream manufacturers are not active in purchasing, resulting in a slight drop in the market price. Recently, some separation enterprises have started gradually, so the contradiction between supply and demand has been alleviated slightly, the price trend in the field is stable, the downstream demand is strong, and the supply and demand gap in the rare earth field still exists. There is a game between upstream and downstream, the mainstream price of rare earth is stable as a whole, and the market is in a strong wait-and-see mood.
The rapid development of the new energy industry has driven the development of many industries. The upstream material rare earth permanent magnet has also caught the “express”. In addition, the sales of new energy vehicles are normal, the demand for rare earth is at a high level, and the price of rare earth oxide is at a high level. Recently, the wait-and-see mood in the downstream has increased, and the price trend in the venue has been stable and slightly lower.
The research team of Shanghai Nonferrous Metals network said that after the Spring Festival, there was a strong demand in terminal fields such as new energy vehicles and wind power, and the orders of large magnetic material enterprises were basically full. At present, it coincides with the rainy season, and the mining of medium and heavy rare earth mines in the south is difficult. It is expected that the supply of medium and heavy rare earth oxides in China will not increase in the first quarter, and the gap between supply and demand in the rare earth market is expected to expand in the first quarter.
outstanding performance
Many enterprises have benefited a lot from the rise in rare earth prices.
On January 13, China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) released the performance forecast. It is estimated that the net profit in 2021 will increase by 4.068 billion yuan to 4.228 billion yuan compared with the same period of last year, with a year-on-year increase of 488.58% to 507.79%.
China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) said that in 2021, with the optimization of upstream supply side and the support of downstream wind power, new energy vehicles and other terminal consumer demand, the supply and demand situation of major rare earth products in the market has been improved, which has driven the price volatility of major products in the rare earth market higher, the transaction activity has increased, and the operating rate and capacity utilization rate of enterprises have increased, The operation quality and efficiency of rare earth production and processing enterprises have been improved.
It is worth mentioning that according to the listing price in February 2022 announced by China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) announcement, the prices of various products decreased slightly compared with the previous month.
Among them, the listing price of praseodymium neodymium oxide was 816000 yuan / ton, down 0900 yuan / ton; The listing price of praseodymium and neodymium metal was reported as 994500 yuan / ton, down 0500 yuan / ton.
Shenghe Resources Holding Co.Ltd(600392) it is estimated that the net profit in 2021 will be 1.05 billion yuan to 1.2 billion yuan, an increase of 727 million yuan to 877 million yuan over the same period of last year, with a year-on-year increase of 225% to 271%. During the reporting period, affected by market supply and demand and other factors, the prices of major rare earth products increased year-on-year, and the company’s production and sales increased year-on-year, resulting in a significant increase in profits.
According to Xiamen Tungsten Co.Ltd(600549) performance express, in 2021, the company achieved a revenue of 31.842 billion yuan, a year-on-year increase of 67.91%, and a net profit of 1.179 billion yuan, a year-on-year increase of 92.04%. Among them, the revenue of rare earth business was about 4.8 billion yuan, a year-on-year increase of 56.98%, and the total profit was about 229 million yuan, a year-on-year increase of 154.34%. In this regard, Xiamen Tungsten Co.Ltd(600549) said. In 2021, the sales volume of the company’s rare earth deep-processing products increased. At the same time, due to the rise in the price of rare earth products caused by the increase in the price of raw materials, the operating revenue and profit of rare earth products increased significantly.
Xiamen Tungsten Co.Ltd(600549) the person from the board secretary office told the international finance news, “the company mainly focuses on the deep processing of rare earth, and the price transmission from raw material end to finished product end will lag to some extent. If the price of Rare Earth continues to rise, it will be reflected.”
