The rare earth sector set off a rising and stopping trend, with a number of individual stocks strongly sealed, and Hong Kong stocks of Chinese rare earths rose nearly 70% at one point in intraday trading. With the gradual expansion of new energy and wind power downstream and the rise of the strategic value of rare earths, the state has issued relevant regulations to strengthen the management of the whole industry chain of rare earths, and strict control on the supply side will continue.
From a market point of view, Hong Kong stocks of Chinese rare earths rose in a straight line at the start of trading, rising nearly 70% at one point, and narrowed to 50% as of press time.
In the A-share market, Earth Bear, a new stock, rose nearly 15% today after its share price halved. Dehong shares, Taihua shares, Xiamen tungsten industry, Shenghe Resources, Guangsheng Nonferrous, Northern rare Earth, Minmetals, North Mining Science and Technology rose one after another, while Zhenghai Magnetic Materials, Greenmei, Jinli permanent Magnet and Zhongke Sanhuan rose one after another.
The quota-related stocks of the six major rare earth groups rose by the daily limit in bulk.
The Ministry of Industry and Information Technology recently issued the regulations on the Administration of rare Earths (draft for soliciting opinions), which makes it clear that no unit or individual may invest in the construction of rare earth mining and rare earth smelting separation projects without approval, and has established a general tone for the follow-up domestic rare earth mining and separation, that is, to continue to implement total quantity target control.
Prior to this, China's rare earth industry has implemented a quota system, and the State Council has set up six major rare earth groups, requiring strict control of the total amount of separation of mining and smelting, and no unit or individual may produce unplanned or over-planned production. According to institutional analysis, with the stricter management and the continuous improvement of industry concentration, the discourse power of the rare earth industry has gradually returned to the industry, and the inflection point of the industry has come.
The six major rare earth groups are China rare rare Earth Co., Ltd., Minmetals rare Earth Group Co., Ltd., China North rare Earth (Group) High-tech Co., Ltd., Xiamen Tungsten Industry Co., Ltd., China South rare Earth Group Co., Ltd., Guangdong rare Earth Industry Group Co., Ltd.
Today's trading of Minmetals rare Earth, Northern rare Earth, Xiamen Tungsten and China Nonferrous Metals Construction Co., Ltd. (China Nonferrous Metals Construction Co., Ltd.) belongs to the six major rare earth groups, and the other sealing board's Guangsheng Nonferrous holding shareholder is Guangdong rare Earth Industry Group Co., Ltd.
According to the total amount control index of rare earth mining and smelting separation in 2020, the total quota of rare earth mineral products and smelting separation products in the north is the highest.
The organization shouted: 6 times increment in 5 years.
Earth Bear, which leads the rise today, is mainly engaged in the third generation of rare earth permanent magnet materials, which belongs to the largest application field downstream of rare earths. North Mining Science and Technology, Dehong shares, China Science and Technology Sanhuan, Jinli permanent Magnet, Zhenghai Magnetic material business is also based on permanent magnet materials.
Due to the rich magnetic, optical and electrical properties of rare earth elements, rare earth permanent magnet materials continue to develop in the downstream application fields such as automobiles, new energy vehicles, wind power generation, energy-saving appliances, intelligent robots and so on.
Zheshang Securities Research News predicts that with the rapid growth of the field of new energy vehicles, the consumption of rare earth magnetic materials in 2025 will be six times that of 2020. The application of rare earth magnetic materials in the automotive field mainly includes new energy-driven motors and traditional micro-special motors for automotive parts.
Wind power is also expected to bring higher increments. High-performance permanent magnet materials are mainly used in permanent magnet direct-drive fans. The agency predicts that in the future, the global installed capacity of wind turbines as a whole is expected to maintain a growth rate of more than 10%, while the permeability of permanent magnet direct drive motors will also increase year by year.
At present, with the recovery of the domestic economy, strong downstream orders bring strong demand for replenishment of NdFeB magnetic materials enterprises, the operating rate of magnetic materials enterprises increased significantly in the fourth quarter of 2020, and the demand for praseodymium and neodymium oxide rose obviously. The average price of praseodymium-neodymium oxide in the fourth quarter also rose from 320000 yuan / ton in the third quarter to 370000 yuan / ton. By 2021, the price of praseodymium and neodymium oxide, a kind of rigid demand in the rare earth industry, has stood at 430000 yuan / ton. Looking to the future, Zheshang Securities expects that the overseas economic recovery, especially the recovery of advanced manufacturing, is expected to drive further demand growth.
