[hot] the rare earth plate soared 6.63% and the biggest increase in six days was as high as 22%!

Today, the rare earth permanent magnet plate soared 6.63%, six consecutive Lianyang, the biggest increase in six days as high as 22%! Zinc shares, China Baoan, Minmetals rare earths, northern rare earths, Jiangxi Copper, Zhangyuan Tungsten, Huahong Technology and other 7 shares rose by the daily limit, while other shares rose to varying degrees.

Benefiting from the increase in demand for rare earths, rare earth prices have continued to rise recently, and related stock stocks have also risen on Synchronize, including Shenghe Resources, northern rare earths, southern rare earths and other stocks.

Message side:

Last week, the Ministry of Industry and Information Technology and the Ministry of Natural Resources issued the first batch of total control targets for rare earth mining and smelting separation in 2021. The total amount control targets of the first batch of rare earth mining and smelting separation in 2021 are 84000 tons and 81000 tons respectively. "View details

This year's rare earth mining and smelting separation indicators account for 60% of the 2020 target. Judging from the changes in the first batch of rare earth ore and smelting separation indicators over the years, SMM expects the first batch of indicators to account for around 50% of the annual index in 2021. SMM believes that the sharp increase in rare earth mining and smelting separation indicators is on the one hand to meet the growing demand for rare earths in the downstream sector, and on the other hand to prevent rare earth prices from skyrocketing and plummeting in 2017 this year. The announcement of the indicators is earlier than in previous years, and the superposition of the rare Earth regulations (draft for soliciting opinions) published at the beginning of the year reflects that China's control over the rare earth industry is becoming more mature and robust. 2021 coincides with the opening year of the 14th five-year Plan, and the rare earth market may be out of a different market this year.

[SMM Forecast] what signals will be released by the first batch of rare earth mining and smelting separation indicators?

Huachuang Securities pointed out that the rapid development of new energy vehicles, wind power and other emerging industries has greatly increased the demand for rare earths, and the increase in domestic mining quotas is in line with market expectations. The new supply from overseas mines to domestic mines will help upstream enterprises to increase market share and reduce costs, and performance flexibility is expected to increase.

On February 20th, the State Council issued the opinions on supporting the Revitalization and Development of the Old Revolutionary Base areas in the New era, clearly proposing to promote the construction of "China's rare Gold Valley" and study the shou storage policy for medium and heavy rare earths and tungsten resources. We will support the planning and construction of big data centers for rare earths, tourism and other industries in qualified areas, and encourage Internet enterprises to develop operations centers and call centers in the old revolutionary base areas. In terms of resource reserves, China's rare earth reserves are the largest in the world, while Jiangxi Ganzhou, as an important rare earth town in the south, can contribute 70% of heavy rare earths and 60% of wolframite to the world every year.

Yang Wu, an analyst at Soochow Securities, said that the demand for rare earths is mainly permanent magnetic materials, mainly NdFeB, while downstream is mainly concentrated in automobiles (50%), wind power (10%) and frequency conversion air conditioners (8.4%). Since the second half of 2020, the growth rate of automobile, wind power and variable frequency air conditioning has been maintained at a high level, benefiting from policy stimulus and restorative growth. It is predicted that by 2025, the demand for praseodymium and neodymium oxide in China will reach 43000 tons, with a compound growth rate of 14.5% from 2020 to 2025.

SMM believes that at present, the rising demand for high-performance NdFeB is still the main driving force for the rise in the price of rare earth products, with each new energy vehicle consuming about 3kg of NdFeB, while the rapid development of the new energy vehicle industry will help drive the growth of demand for high-performance NdFeB.

Spot market of rare earths:

According to SMM research, there is generally no reduction in production during the Spring Festival, while some large magnetic materials enterprises reflect strong orders and persist in production during the Spring Festival, and it is expected that the Spring Festival holiday will have little impact on supply and demand in the rare earth market.

On the second day after the festival, although there are enterprises returning to work one after another, and the market is bullish, the spot market quotation for rare earths is still not much, and the transaction is also very rare. In terms of light rare earths, the supply of lanthanum and cerium exceeds demand and is still hovering at a low level, and many separation plants take the initiative to seek buyers to reduce the inventory accumulated in the early stage. it is reported that the main application fields of lanthanum and cerium products are polishing powder and metallurgical industry. The quotation of praseodymium-neodymium products is still rising, the mainstream praseodymium-neodymium oxide price is 480000 yuan / ton, the actual transaction price is 475000 yuan / ton, the mainstream quotation of praseodymium-neodymium metal is around 590000 / ton, and the price with account period is 600000 yuan / ton. In terms of medium and heavy rare earths, dysprosium, terbium and dysprosium products are still being consolidated at a high level, with quotations slightly higher than before the festival, oxidation inquiry is more active, and spot is difficult to find, with magnetic material factories resuming work and production one after another, it is expected that the prices of medium and heavy rare earths still have room to rise.

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Quarterly report on China's rare Earth Industry chain