In the past week, rare earth prices have risen again.
rare earth prices rose across the board
According to the data of business society, neodymium oxide rose by 7.94% and metal neodymium rose by 5.98% in the past week. In the past three months, the prices of various rare earth varieties have increased to varying degrees. Praseodymium neodymium oxide has increased by 47.54%, neodymium oxide has increased by 60.63%, praseodymium oxide has increased by 37.08% and metal neodymium has increased by 57.96%.
The rare earth industry leader China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) recently released the listing price of rare earth products in January 2022. The data show that the prices of praseodymium neodymium oxide, neodymium oxide, metal praseodymium neodymium and metal neodymium are 816900 yuan / ton, 892000 yuan / ton, 995000 yuan / ton and 1085000 yuan / ton respectively, which is the same as the listing price in December 2021. Compared with January 2021, the listing prices of the above products increased by 85.24%, 61.89%, 82.57% and 60.03% respectively.
According to the index trend released by China Rare Earth Industry Association, the rare earth price index reached 364.49 on January 11, 195.11 on January 13 last year, that is, the price index rose by more than 80% in one year. Northeast Securities Co.Ltd(000686) believes that in the short term, the tightening of the contradiction between supply and demand will help maintain rare earth prices at a high level. With the Spring Festival approaching, some small waste factories will stop reducing production, and the supply shortage will continue in the short term. Considering the restraint of China’s indicators, the overseas production capacity is close to full production, and it is expected that the supply will remain tight in 2022.
during the 14th Five Year Plan period, rare earth enterprises are encouraged to carry out merger and reorganization
The “14th five year plan” for the development of raw material industry recently issued by the Ministry of industry and information technology, the Ministry of science and technology and the Ministry of natural resources proposes to promote the efficient utilization of resources such as mechanical excavation and continuous mining, green and efficient mining of ion adsorption rare earth ores, associated rare earth polymetallic ores, material circulation in the extraction and separation process Research and development of new technologies such as ultra-high purity metal and target preparation. Cultivate a number of leading enterprises in the industrial chain with ecological leadership and core competitiveness, strengthen and expand rare earth enterprise groups, and encourage rare metal enterprises to accelerate integration.
On December 22, the strategic integration plan of China Minmetals Rare Earth Co.Ltd(000831) Co., Ltd. was submitted to the State Council for approval. This integration includes many upstream, middle and downstream companies, and the main body after integration is controlled by the SASAC of the State Council. This integration has improved the concentration of China’s rare earth industry, prevented blind expansion of production capacity and vicious low price competition, and improved the overall external competitiveness of China’s rare earth industry.
According to the Research Report of East Asia Qianhai securities, in terms of supply, China’s rare earth metal output generally shows an upward trend, and the annual compound growth rate of China’s total rare earth metal output from 2017 to 2020 is 10%. In terms of demand, the explosive growth of new energy vehicles in recent years has led to a significant increase in the demand for rare earths. According to the statistics of China Automobile Industry Association, the sales volume of Shanxi Guoxin Energy Corporation Limited(600617) vehicles is expected to reach 3.4 million in 2021, with a year-on-year increase of 160%. both supply and demand have increased. With the superposition of this integration, the boom of rare earth industry is expected to continue.
rare earth permanent magnet concept stocks recently retreated sharply
According to the statistics of securities times · databao, there are 25 concept stocks with rare earth permanent magnets in the A-share market. Today, 22 stocks rose, Sinosteel New Materials Co.Ltd(002057) rose by 8.91%, ranking first, and Jiangmen Kanhoo Industry Co.Ltd(300340) , Xiamen Tungsten Co.Ltd(600549) , Chengxin Lithium Group Co.Ltd(002240) rose first.
Since the beginning of the year, rare earth permanent magnet concept stocks have generally experienced a significant retreat, and the valuation has gradually returned to a reasonable range. According to data treasure statistics, since the beginning of 2022, a total of five rare earth permanent magnet concept stocks have retreated by more than 10%, including Chengxin Lithium Group Co.Ltd(002240) , Tdg Holding Co.Ltd(600330) , Jl Mag Rare-Earth Co.Ltd(300748) , Earth-Panda Advanced Magnetic Material Co.Ltd(688077) , Zhongshan Broad-Ocean Motor Co.Ltd(002249) .
At present, six rare earth permanent magnet concept stocks have announced the performance forecast for 2021, all of which are expected to increase. From the median value of the expected increase in net profit, Inner Mongolia Baotou Steel Union Co.Ltd(600010) , Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) , Earth-Panda Advanced Magnetic Material Co.Ltd(688077) is expected to be the top, with the median values of 650.08%, 217.04% and 190.59% respectively.
According to the announcement of Inner Mongolia Baotou Steel Union Co.Ltd(600010) , the steel and rare earth industry operated well in 2021, and the prices of steel and rare earth increased year-on-year. The company seized the market opportunity, significantly enhanced its profitability, and significantly increased its operating performance year-on-year in 2021.
The forecast of Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) shows that the net profit attributable to the parent company is expected to reach 330-490 million yuan, with a year-on-year increase of 155.18% – 278.90%. In the investor research activities, the company said that it plans to increase the capacity of sintered Nd-Fe-B by about 10000 tons in about one year with the funds raised by allotment and self raised funds, and the above capacity will gradually reach the production capacity.
