Rare Earth Metals concept stocks are rising. As of the time of writing, CHINA RAREEARTH (00769) is up 3.66%, reported at 0.425 Hong Kong dollars; Jl Mag Rare-Earth (06680) is up 2.5%, reported at 14.78 Hong Kong dollars.
According to Zhito Finance App, Rare Earth Metals concept stocks are rising. As of the time of this report, CHINA RAREEARTH (00769) is up 3.66%, trading at 0.425 Hong Kong dollars; Jl Mag Rare-Earth (06680) is up 2.5%, trading at 14.78 Hong Kong dollars.
In terms of news, recently, the National Export Control Working Coordination Mechanism Office organized different departments to hold a special action meeting against the smuggling and export of strategic minerals, which has attracted international public opinion. Reports from Institutions indicate that due to the impact of China's export controls, USA Military Industry companies have only three months' worth of Rare Earth Metals inventory remaining, while over 90% of Global rare earth processing capacity is still firmly controlled by China. According to data from the London Metal Exchange, since the strengthening of export controls on mid-heavy rare earths in mid-April, the spot price of terbium oxide has already surpassed 2 million yuan/ton, an increase of 35% compared to the beginning of the year.
Xiangcai Securities pointed out that the international market's Rare Earth Metals prices are rising due to export controls, leading to a short-term rebound in industry valuations. Current absolute valuations and relative historical valuation levels are still relatively high. The overall profitability of the Industry in the first quarter has recovered to some extent, but the sustainability and magnitude of the increases in Rare Earth Metals and magnetic materials prices and profitability center still depend on the ease of supply-demand conflicts, with high valuations still needing further digestion. China Merchants previously stated that after China implemented export controls on Rare Earth Metals, there will be a short-term rush for orders overseas, causing overseas Rare Earth Metals prices to surge. In contrast, domestic deep processing enterprises are facing developmental opportunities. Since some processed Rare Earth Metals products are not within the scope of this export control, the profit margins for enterprises are being expanded, consequently pushing up domestic Rare Earth Metals prices.
