The Zhitong Finance App learned that China's rare earths (00769) rose more than 9% in the afternoon. As of press release, it had risen 6.76% to HK$0.395, with a turnover of HK$6.385,800.
Guojin Securities pointed out that Northern Rare Earth announced the listing prices for rare earth products in April 2024, and the prices of all rare earth products remained flat month-on-month, ending a continuous decline; orders from major manufacturers continued, and stocks just needed to be replenished, and rare earth prices rebounded. The bank determined that rare earth imports in 2024 would be difficult to maintain last year's high base. In January-February 2024, rare earth imports declined significantly year-on-year as scheduled; continued low prices also seriously reduced the profits of the rare earth recycling industry, and subsequent expansion was limited.
The bank pointed out that the Ministry of Finance and the Ministry of Industry and Information Technology issued the “Notice on Launching Pilot Work on New Technological Transformation Cities in the Manufacturing Industry”, providing financial support for building smart factories and upgrading old equipment; considering the continued implementation of policy support, rare earth magnetic materials may continue to benefit from manufacturing upgrades and upgrading. Considering the slowdown in domestic quota growth and the relaying release of demand for new energy vehicles superimposed on robots and industrial motors, the “trade-in” policy is expected to bring both stock and incremental demand, and the rare earth price center is expected to gradually rise.