Jinwu Financial News | Haitong International said it believes rare earth prices have completed the bottom adjustment, and the price recovery reflects the support of rare earth smelting production costs. In an environment where demand is recovering, the bank is optimistic that rare earth prices will rise steadily.
According to the bank, on the supply side, the growth rate of domestic supply indicators has slowed in 24, overseas production and import volumes have declined, and supply constraints have strengthened. On the demand side, demand for new energy sources continues to grow, and robots are expected to become the next hot spot in demand. In terms of inventory, rare earth separation plants accumulated a small amount of storage, and midstream and downstream inventories decreased year-on-year. The bank believes that the recovery in downstream demand has led to a decline in stocks of middle- and downstream rare earth products such as dysprosium iron, praseodymium metal, and sintered NdFeB. In terms of cost, the cost of neodymium-praseodymium metal supports the bottom of the price. The bank believes that due to the high concentration of the rare earth industry and that the country controls production indicators for mining and smelting volume, the production costs of the rare earth industry are strong in supporting prices.
The bank continued that domestic rare earths have deep resource barriers and stable market shares. It is recommended to focus on rare earths from the North and rare earths from China (00769); demand for downstream rare earth processing end magnetic products is improving, driven by emerging industries, and it is recommended to focus on Jinli Permanent Magnets (06680).
