Guotai Junan: cautious increase of concept stocks related to the improvement of rare Earth supply and demand-Shanghai Metals Market

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Guotai Junan: cautious increase of concept stocks related to the improvement of rare Earth supply and demand

Translation 08:21:42AM Sep 02, 2019 Source:Guotai Junan
The content below was translated by Tencent automatically for reference.

SMM News: rare earth supply and demand improvement, increase the holding of rare earth plate. With the contraction of the supply of rare earth mines in Myanmar, the implementation of the domestic rare earth quota system, and the continuous improvement of the rare earth industry, the supply pattern of the rare earth industry has been gradually improved, and the main downstream rare earths are neodymium, iron and boron. Benefiting from the development of wind power, new energy vehicles, industrial robots and other fields, the demand for neodymium, iron and boron will gradually improve and increase the holding of rare earth plates. Supply and demand improvement, domestic rare earth upstream resources companies and downstream neodymium iron boron companies will directly benefit. Cautious increase: northern rare earths, Ningbo Yunsheng, Antai science and technology; neutral rating: Guangsheng Nonferrous.

China accounts for 73% of the world's rare earth production, ranking first, and is an important bargaining chip in the game of great powers. China accounts for 38% of rare earth resources and 73% of output, ranking first; in addition, China basically controls the supply of heavy rare earth minerals. Compared with overseas, China's rare earth smelting has core barriers, and the input cost of overseas rare earth industry chain is high. No matter from the point of view of Capex or the later operating cost, the cost of overseas rare earth industry input is much higher than that of domestic rare earth industry. Due to too strict supervision, the overseas rare earth industry chain will bear part of the external costs, which has achieved the core competitiveness of China's rare earth smelting links as a whole.

The supply pattern of rare earths has been greatly improved. 1 the ban on the entry of rare earths into the Chinese market in Myanmar has a short-term impact on the supply of 29% of the world's heavy rare earth dysprosium oxide and 9% of light rare earth praseodymium and neodymium oxide, and the supply pattern of light rare earths has been greatly improved. (2) the quota system of rare earth industry has been continuously promoted, the blind development of rare earth industry has been restricted, and the market behavior has been standardized. (3) the renovation of the rare earth industry and environmental protection have been continuously promoted, and the pattern of the rare earth industry has been continuously optimized. Stealing and over-mining of rare earths in China has always been the biggest reason for the serious oversupply of rare earths in the rare earth industry. With the regularization and institutionalization of the domestic rare earth industry in 2017, the malady of the rare earth industry has been gradually improved and eliminated, and the pattern of the rare earth industry has been continuously optimized.

The demand for magnetic materials downstream of rare earths is gradually recovering. Rare earth praseodymium neodymium and dysprosium terbium are mainly used in neodymium ferroboron magnetic steel. The downstream of ND-Fe-B magnetic material is mainly used in wind power, frequency conversion air conditioning, automobile (especially new energy vehicle), and industrial robot motor and so on. Wind power, home appliances industry will gradually recover, cars, especially new energy vehicles, industrial robots are in the stage of rapid growth, will promote the sustained growth of ND-Fe-B demand.

Risk tip: the ban on rare earths in Myanmar has eased, and the rectification of the rare earth industry has not been as good as expected.

[focus] 2019 China rare Earth permanent Magnet Industry Market Application Development Forum

The trade war between China and the United States has made rare earths become the focus of global attention. China has the largest rare earth industry resources and export dominance in the world, and the world is highly dependent on China's rare earths, especially the United States. How will China make good use of the development advantages of the rare earth industry in the future? how to improve the development of the industry, monitor and crack down on black rare earths in order to standardize the ecological environment of the industry, and whether the rare earth industry has become a rising star after it has been put forward for strategic development? Whether the rare earth enterprise ushered in the tuyere? How will the price of rare earths go? At the 2019 China rare Earth permanent Magnet Industry Market Application Development Forum, SMM will invite industry experts and enterprise bigwigs to interpret the market focus topics for everyone, and provide technical professional guidance for the high-quality development of enterprises, so as to help enterprises have more advantages in the fierce competition. Welcome to the summit, together with the industry!

"Click to sign up for this summit

Scan QR code and apply to join SMM metal exchange group, please indicate company + name + main business

 

Guotai Junan: cautious increase of concept stocks related to the improvement of rare Earth supply and demand

Translation 08:21:42AM Sep 02, 2019 Source:Guotai Junan
The content below was translated by Tencent automatically for reference.

SMM News: rare earth supply and demand improvement, increase the holding of rare earth plate. With the contraction of the supply of rare earth mines in Myanmar, the implementation of the domestic rare earth quota system, and the continuous improvement of the rare earth industry, the supply pattern of the rare earth industry has been gradually improved, and the main downstream rare earths are neodymium, iron and boron. Benefiting from the development of wind power, new energy vehicles, industrial robots and other fields, the demand for neodymium, iron and boron will gradually improve and increase the holding of rare earth plates. Supply and demand improvement, domestic rare earth upstream resources companies and downstream neodymium iron boron companies will directly benefit. Cautious increase: northern rare earths, Ningbo Yunsheng, Antai science and technology; neutral rating: Guangsheng Nonferrous.

China accounts for 73% of the world's rare earth production, ranking first, and is an important bargaining chip in the game of great powers. China accounts for 38% of rare earth resources and 73% of output, ranking first; in addition, China basically controls the supply of heavy rare earth minerals. Compared with overseas, China's rare earth smelting has core barriers, and the input cost of overseas rare earth industry chain is high. No matter from the point of view of Capex or the later operating cost, the cost of overseas rare earth industry input is much higher than that of domestic rare earth industry. Due to too strict supervision, the overseas rare earth industry chain will bear part of the external costs, which has achieved the core competitiveness of China's rare earth smelting links as a whole.

The supply pattern of rare earths has been greatly improved. 1 the ban on the entry of rare earths into the Chinese market in Myanmar has a short-term impact on the supply of 29% of the world's heavy rare earth dysprosium oxide and 9% of light rare earth praseodymium and neodymium oxide, and the supply pattern of light rare earths has been greatly improved. (2) the quota system of rare earth industry has been continuously promoted, the blind development of rare earth industry has been restricted, and the market behavior has been standardized. (3) the renovation of the rare earth industry and environmental protection have been continuously promoted, and the pattern of the rare earth industry has been continuously optimized. Stealing and over-mining of rare earths in China has always been the biggest reason for the serious oversupply of rare earths in the rare earth industry. With the regularization and institutionalization of the domestic rare earth industry in 2017, the malady of the rare earth industry has been gradually improved and eliminated, and the pattern of the rare earth industry has been continuously optimized.

The demand for magnetic materials downstream of rare earths is gradually recovering. Rare earth praseodymium neodymium and dysprosium terbium are mainly used in neodymium ferroboron magnetic steel. The downstream of ND-Fe-B magnetic material is mainly used in wind power, frequency conversion air conditioning, automobile (especially new energy vehicle), and industrial robot motor and so on. Wind power, home appliances industry will gradually recover, cars, especially new energy vehicles, industrial robots are in the stage of rapid growth, will promote the sustained growth of ND-Fe-B demand.

Risk tip: the ban on rare earths in Myanmar has eased, and the rectification of the rare earth industry has not been as good as expected.

[focus] 2019 China rare Earth permanent Magnet Industry Market Application Development Forum

The trade war between China and the United States has made rare earths become the focus of global attention. China has the largest rare earth industry resources and export dominance in the world, and the world is highly dependent on China's rare earths, especially the United States. How will China make good use of the development advantages of the rare earth industry in the future? how to improve the development of the industry, monitor and crack down on black rare earths in order to standardize the ecological environment of the industry, and whether the rare earth industry has become a rising star after it has been put forward for strategic development? Whether the rare earth enterprise ushered in the tuyere? How will the price of rare earths go? At the 2019 China rare Earth permanent Magnet Industry Market Application Development Forum, SMM will invite industry experts and enterprise bigwigs to interpret the market focus topics for everyone, and provide technical professional guidance for the high-quality development of enterprises, so as to help enterprises have more advantages in the fierce competition. Welcome to the summit, together with the industry!

"Click to sign up for this summit

Scan QR code and apply to join SMM metal exchange group, please indicate company + name + main business