Pr-Nd oxide rose more than 2% in four trading days, and the concept of rare earth permanent magnets continued to strengthen, with Longci Technology leading the gains [SMM Flash News]

SMM reported on July 8:

The rare earth industry chain has recently shown a resonance of multiple positive factors, with prices of various spot rare earth varieties continuing to rise. This trend is reflected in the capital market, where as of 13:16 on July 8, the rare earth permanent magnet concept index continued its upward momentum from the previous trading day, rising by 2.2%. Among individual stocks, Longci Technology surged by 10.63%, while Yinhe Magnet, Rising Nonferrous Metals, Wuchan Zhongda Group, and Eontech Corporation led the gains. On the news front: Firstly, the continuous procurement by major rare earth enterprises has provided solid support to the market, forming a stable demand foundation. Secondly, influenced by news, some rare earth enterprises are expected to halt production, raising market concerns about production cuts in oxides and further intensifying expectations of supply-side tightness. Meanwhile, downstream magnetic material enterprises have growing expectations for demand recovery by month-end. The positive signals from the demand side and the tightening expectations on the supply side have combined to drive up spot rare earth prices.

Pr-Nd oxide rose by 2.14% in four trading days, while dysprosium oxide increased by 2.79% in four trading days.

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On July 8, the entire rare earth spot industry chain, from ore to oxides, rare earth metals, and NdFeB blanks, continued its upward trend.

It is worth mentioning that Pr-Nd oxide has risen for four consecutive trading days. Its daily average price on July 8 was 454,000 yuan/mt, up 9,500 yuan/mt from the daily average price of 444,500 yuan/mt on July 2, representing a 2.14% increase. Dysprosium oxide also achieved four consecutive days of gains, with its daily average price on July 8 at 1,660 yuan/kg, up 45 yuan/kg from the average price of 1,615 yuan/kg on July 2, representing a 2.79% increase over four trading days. Terbium oxide prices remained stable on July 8, with an average price of 7,180 yuan/kg.

Currently, the continuous procurement by major enterprises has significantly boosted market confidence. Additionally, the high frequency of tender procurement by leading magnetic material enterprises provides strong support for rare earth prices, driving them to rise repeatedly. Furthermore, influenced by relevant news, market expectations for the suspension of production at separation plants in some regions are gradually heating up, and this expectation is expected to provide strong support for rare earth prices in the short term.

However, as rare earth prices continue to rise, the downstream terminal market is still in the off-season of traditional industries, limiting the market's acceptance of high-priced goods. It is expected that before a significant improvement in demand, the tug-of-war between upstream and downstream may intensify as rare earth prices climb. Currently, the focus of market attention is whether demand will recover by the end of July.

Institutional Voices

Guoyuan Securities noted that influenced by global geopolitical conflicts, tariff policies, and measures from certain countries, supply-side shortages have emerged for some metals, exacerbating market sentiment. Cobalt prices have performed remarkably over the past two weeks. Overseas developments include the Democratic Republic of Congo's temporary ban on cobalt exports, with supply-side tightening persisting. Domestically, ongoing updates to rare earth regulations and export policies warrant attention to price trend divergence. Recent investment opportunities should focus on precious metals and rare earthsZ12/>Dongguan Securities highlighted that during the Ministry of Commerce's June 26 regular press conference, a spokesperson stated: China consistently prioritizes stabilizing global industrial and supply chains, expediting reviews of rare earth export license applications in accordance with laws and regulations. A certain volume of compliant applications has been approved, with continuous enhancement of approval processes for compliant requests. China remains willing to strengthen export control dialogues with relevant countries and actively facilitate compliant trade. As export demand gradually recovers and emerging sectors like humanoid robots expand rare earth growth potential, the medium-term outlook continues to favor a rebound in rare earth industry prosperity.

Orient Securities expressed that medium-term supply structure optimization in the rare earth sector, coupled with upstream smelting and processing enterprises' quota scarcity, positions them to dominate industry chain profit allocation. This could enable high-quality development featuring controlled production volumes, moderate price increases, and steady profit growth. The market exhibits significant awareness gaps regarding this dynamic, with recommendations to monitor global rare earth industry chain leaders.