SMM News: after the artificial meat plate, the rare earth plate recently became the star on the A-share concept plate list. On May 21, Wind rare earth index and rare earth permanent magnet index rose sharply. And throughout the week, the two major indexes have risen more than 20%, the crown of the major conceptual sectors. Rare earths in Hong Kong stocks also performed strongly, with China's rare earths doubling in one day, topping the list of gains for Hong Kong stocks.
The whole plate rose
Following the rally of rare earth stocks on the last trading day, the rare earth plate continued to be strong on May 21, with the Wind rare earth index and the rare earth permanent magnet index rising 9.77 per cent and 8 per cent, respectively. Among them, Shenghe Resources, Minmetals rare Earth, Guangsheng Nonferrous, Northern rare Earth, North Mine Science and Technology, Gold permanent Magnet, Galaxy magnets and other stocks rose by the limit, other stocks also rose sharply. The two indices rose 25.70 per cent and 22.86 per cent over the five days, well ahead of other conceptual sectors.
At the same time, the rare earth sector of the Hong Kong stock market also ushered in the outbreak, Wind Hong Kong rare earth permanent magnet index rose 4.14%, its China rare earth rose 108.11%, intraday rose more than 135%, the biggest one-day gain in the history of the stock; In addition, Silk Road Energy rose 12.50%, Xinjiang Xinxin Mining rose 9.68%, Minmetals rose 3.13%, Chinalco and Jiangxi Copper rose against the market.
With regard to the reasons for the recent surge in the rare earth plate, Citic Securities and other institutions believe that the recent customs closure at the border between Tengchong and Myanmar, Myanmar's import of rare earth mines is limited, and with the advent of the traditional peak season, enterprises have actively replenished their warehouses. Traders have also stepped up their efforts to collect goods, superimposed tariff factors, rare earth prices ushered in a rise. In addition, in the long run, the increase in the production of new energy vehicles, the growth of overseas orders, will bring huge increments to the consumption of neodymium, iron and boron, but also bring a positive boost to the sector.
The data show that rare earths are not "earth", but a general name for a class of oxides, known as "industrial vitamins", which are widely used in petrochemical, metallurgical, military, textile, ceramics, glass, permanent magnet materials and other fields. As the country with the most abundant rare earth resources in the world, China has unique advantages and development space in this field.
Medium and heavy rare earths have a better chance?
Pacific Securities pointed out that rare earth metal products, including downstream magnetic materials, as high-end strategic materials, have more multiple meanings in the current international environment. Due to Myanmar + tariff + demand resonance, it is recommended to continue to pay attention to medium and heavy rare earths and magnetic faucets. At present, with the high uncertainty of Myanmar's return to customs and the slow progress of domestic resumption of production, the price of medium and heavy rare earths is expected to continue to rise. In addition, imported minerals or rising costs, light rare earths may stabilize, judging that plate profitability is expected to pick up gradually in 2019.
Citic Construction Investment Securities pointed out that the news of rare earth supply is positive, and the prices of medium and heavy rare earths, mainly dysprosium oxide and terbium oxide, have continued to rise, and the market generally expects that the prices of dysprosium oxide and terbium oxide still have room to rise, and that holders have a strong sense of cherishing and selling goods. There are relatively few sources of goods in circulation on the market, and the transaction price is relatively high. The relevant rare earth targets benefit from the double advantages of supply-side contraction, and the stock price has been boosted significantly, but the sustainability of the subsequent performance of the plate remains to be seen.
Shen WanHongyuan said that the United States imported about 1.3 to 14000 tons of rare earth oxides into China in 2018, accounting for about 9 per cent of China's demand for rare earth oxides in a year. Short-term price of light rare earths to form a certain support, which is also one of the reasons why the price of praseodymium and neodymium oxide has stabilized in the short term, but this does not have the ability to raise the price center of praseodymium neodymium oxide. In addition, the agency believes that the sharp rise in magnetic stocks is good for the market based on historical experience as an extension of the rise in rare earth prices, but from a fundamental point of view, the increase in raw material prices is not conducive to the long-term profits of middle and lower reaches processing enterprises. Rare earth plate theme investment is popular, the fundamentals may be reversed at any time, medium and heavy rare earths are more elastic than light rare earths.