Rare earth metals and non-ferrous metal concept stocks soar in the Hong Kong stock market, as of the time of publication,$JLMAG (06680.HK)$up 30%, $CHINA RAREEARTH (00769.HK)$up 14%, $CMOC (03993.HK)$up 10%.

Southbound funds hold 15.77% of the issued shares of JL Mag Rare-Earth.

Data shows that as of October 31, southbound funds held 31.6798 million shares of JL Mag Rare-Earth, with a market cap of 0.239 billion Hong Kong dollars, a decrease of 8.9881 million Hong Kong dollars from the previous trading day, representing 15.77% of the issued shares.

Myanmar's rare earth mining is stagnant, with institutions bullish on medium and heavy rare earth.

Institutions stated that the suspension of mines in Myanmar, as well as limited supply of domestic medium and heavy rare earth due to environmental reasons, may lead to a shortage in supply and demand of medium and heavy rare earth. If raw material inventories are depleted, prices of medium and heavy rare earth may significantly rise. The supply and demand situation for light rare earth will also improve, but domestic supply still has potential, and the scarcity may be weaker than that of medium and heavy rare earth.

Myanmar is one of China's important sources of rare earth raw materials. From January to September this year, China imported 0.031 million tons of rare earth oxide from Myanmar, accounting for 74.9% of the total oxide imports during the same period.

Regarding the suspension of rare earth mining in Myanmar, individuals related to China Rareearth stated that they have seen some relevant information in the media. Currently, the company has its own mining operations, ensuring its own needs.

Individuals related to China Northern Rare Earth expressed that previously there were imported ores, and now it is equivalent to a decrease in supply. When asked if this event would affect rare earth prices, the above-mentioned individuals from China Northern Rare Earth stated that with decreased supply, the raw material end may be tightly balanced.

China Rareearth stated on October 30 at an earnings conference that as a strategic small metal, rare earth product prices are influenced by supply and demand, and have always been in a fluctuating state. In 2024, affected by market conditions, industry supply and demand cycles, among other factors, prices of major rare earth products exhibited a rapid decline trend in the first quarter, fluctuating at relatively low levels in the second and third quarters. As we enter the fourth quarter, prices of some rare earth products have shown signs of recovery. With the formal implementation of the 'Rare Earth Management Regulations' and an improvement in the supply and demand situation, prices of major rare earth products are expected to return to a relatively reasonable range.

GTJA stated that, from a fundamental perspective, they are bullish on the aluminum, rare earth magnetic materials, and PCB copper foil/CCL copper clad laminate sectors. It is expected that the demand for rare earths, PCB copper foil/CCL copper clad laminate will continue to increase on the demand side, with a good supply pattern already in place, and they are optimistic about the opportunity for companies in these sectors to increase both volume and price. In terms of target allocation, they plan to increase their shareholding in the rare earth magnetic materials sector.

Huafu Securities believes that in the medium to long term, there is strong uncertainty in the increase of overseas supply, and the growth rate of domestic indicators is expected to continue to slow down. The demand growth will be driven by new energy demand and industrial robots successively. The policy of "replacing old with new" is expected to bring both existing and incremental demand, and as the most concentrated supply of non-ferrous varieties, even in the event of oversupply, the prices remain relatively controllable. In addition, the future supply and demand of rare earths are expected to shift from oversupply to tight balance.

Editor/ping