November 17 news, the rare earth permanent magnet plate continued to rise, as of press release, North Mining Technology, Yujing shares rose by the limit, Ningbo Yunsheng, Ke Heng shares, Jiuwu Hi-Tech, Hengdian East Magnetic, Ke Liyuan, Antai Technology and other top gainers.
On the face of the news, the National Development and Reform Commission recently issued the 14th five-year Plan for promoting the High-quality Development of Resource-based areas. The plan adheres to the systematic concept, better overall development and safety, promotes the high-quality development of resource-based areas, and proposes to increase the exploration of strategic mineral resources such as oil, natural gas, copper, chromium, tungsten, rare earths, and crystalline graphite. do a good job in the strategic succession of important mineral resources.
Since the beginning of the fourth quarter, the downstream production of rare earths has entered the seasonal peak season, with the mining volume of rare earths rising sharply in 2021, up 21.42% from 2020. On November 15, 2021, the price of neodymium oxide rose to 826000 yuan / ton, and the price of praseodymium oxide rose to 843000 yuan / ton. Since the National Day (2021.10.7), the increase has been 30.28%, 29.69% respectively.
In the short term, supply is difficult to increase, demand is improving, the contradiction between supply and demand is intensified, and the price of rare earths is expected to continue to rise. The fourth quarter is the traditional peak season for downstream demand for rare earths, and supply and demand fundamentals are expected to support rare earth prices. The supply side is tight, with the exception of rare earths in the north, the second batch of rare earth quotas in most rare earth groups have declined month-on-month; foreign supply is difficult to increase, the situation of epidemic prevention and control is grim, raw ore can not be imported for a long time, resulting in a shortage of raw materials and a serious shortage of production capacity. Australia's Lynas supply, which accounts for 10 per cent of the world's light rare earths production, is tight, and Myanmar's mine imports are expected to be difficult to recover in the short term. Even if China and Myanmar pass through customs, mining will be subject to manpower and raw material restrictions.
In the long run, rare earths are at the starting point of a new era of supply and demand reconstruction, and the valuation system is reconstructed. In January this year, the Ministry of Industry and Information Technology openly solicited opinions on the regulations on the Administration of rare Earths (draft for soliciting opinions), and proposed that the state should implement total index management for the separation of rare earth mining and smelting, and implement the strategic reserve of rare earth resources and rare earth products. and for the first time clearly defined the punishment regulations for enterprises that violate the regulations. The future of rare earths is expected to repeat the logic of the history of high demand for lithium-cobalt new energy, and its supply side is even better than lithium-cobalt, seizing the opportunity of revaluation of core assets with global pricing power. At the same time, with the development of new energy industry, new energy vehicles bring continuous demand for rare earths, and the consumption of high-performance NdFeB magnetic materials is increasing, corresponding to rare earth praseodymium-neodymium oxide, rare earth neodymium, lanthanum, cerium, praseodymium oxide, rubidium and so on. Secondly, with the further integration of the six rare earth groups and reshaping the pattern of the industrial chain, the rare earth industrial chain has achieved the clearance of backward production capacity, and the profit center of the industry has risen as a whole.