Zhitong Financial APP learned that on November 25, affected by news that rare earth demand continued to be boosted by many factors, A-share rare earth permanent magnet plate bottomed out and rebounded, as of press release, Yinglohua (000795.SZ) rose by the daily limit; Zhenghai Magnetic Materials (300224.SZ), Huayang New Materials (600281.SH), Dadixiong (688077.SH), Xiamen Tungsten Industry (600549.SH) and other stocks rose.

Huabao Securities Research report: in the short term, supply is difficult to increase, demand is improving, the contradiction between supply and demand is intensified, and rare earth prices are 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.