Galaxy Securities: Rare Earth Prices Expected to Steadily Rise from the Bottom

Galaxy Securities' research report on February 19th stated that assuming the total control indicators for the second batch of rare earth mining, smelting, and separation in China in 2024 are the same as the first batch, and no special indicators will be issued for the third batch, the total domestic rare earth mining volume for the entire year of 2024 will be 270,000 tons, an increase of only 5.9% compared to 2023, a decrease of 15.5 percentage points from 2023. The significant slowdown in the incremental supply of domestic rare earth ore will greatly improve the supply-demand structure of rare earths. The further optimization of the rare earth industry structure, with the integration of two giants, will lead to a steady increase in rare earth prices. The profitability of rare earth companies is expected to be greatly improved.