[hot stocks] the price of rare earths continues to rise. The market value of rare earths in the north has exceeded the limit of more than 170 billion yuan.

Today, the performance of rare earth permanent magnets continues to be strong. As of 1440, Northern rare earths, Ningbo Yunsheng, Yahua Group rose by the daily limit, Lizhong Group rose by more than 14%, Minmetals rare earths rose by more than 9%, Baotou Steel shares rose by more than 8%, Shenghe Resources and Jiuwu Hi-Tech rose one after another. It is worth noting that the market value of rare earths in northern China has exceeded 170 billion yuan today. At the beginning of this month, the market value of rare earths in northern China was less than 100 billion yuan, and in just one month, the market value soared. On July 1, northern rare earths closed at 20.04 yuan per share. As of press time, the share price of northern rare earths had reached 47.70 yuan per share, an increase of more than 130%.

The price of rare earths has been rising since July. Yesterday, 20 tons of praseodymium and neodymium metal were sold at auction on the rare exchange, with a transaction price of 744300 yuan / ton. On July 30th, the spot price of SMM metal neodymium was 775000 yuan / ton, up 22500 yuan / ton from yesterday, or 2.99%, and more than 30% in the past month.

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Chuancai Securities reported that the core end demand of rare earth products covers three aspects, namely, new energy vehicles, frequency conversion air conditioners and wind power. Specifically, according to the relevant data of the China Automobile Association, the sales of new energy narrow passenger vehicles in May 2021 were 237000, an increase of 178.82% over the same period last year. At the same time, the China Automobile Association estimates that the growth rate of new energy vehicles will exceed 40% in the next few years. New energy vehicles have a strong demand for praseodymium-neodymium-related products, which provides support for the price increase of rare earth products. In terms of wind power, according to relevant announcements, the end of 2022 is the deadline for grid connection of wind power parity projects in 2019 and 2020, which means that there is a need for rush installation in the wind power field in the near future, and the demand will continue for some time in the future. and since the beginning of this year, related projects have a good rate of return on investment, with wind power investment increasing by 8% from January to April compared with the same period last year. In terms of frequency conversion air conditioning, under the background of carbon neutralization, there will be more room for demand in the future.

Guoxin Securities pointed out that with the rapid development of downstream new energy vehicles, the demand for magnetic materials broke out in an all-round way. It is estimated that the demand for praseodymium and neodymium oxide in the field of new energy vehicles will reach 24000 tons by 2025, an increase of 438% over 2020. On the other hand, the supply of rare earths is rigid under the control of quotas and is concentrated in six major rare earth groups. Led by the demand for new energy, the supply and demand of praseodymium and neodymium is tight, and the value of rare earths is