Rare earth sector strengthens again

Recently, the A-share rare earth sector has strengthened again due to the news that the strategic value revaluation of rare earth resources is still underway
.
As of the close of July 6th, Minmetals Rare Earth's daily limit, Jiuwu Hi-Tech, Mindong Electric Power, Huahong Technology, Tianfu Energy, Northern Rare Earth and other stocks rose

In the spot market, rare earth prices have risen steadily
.
According to data from the business agency, on July 1, the domestic light rare earth market part of the price rose, the price of metal praseodymium neodymium rose by 5,000 yuan (ton price, the same below), to 587,500 yuan; the price of neodymium praseodymium oxide rose by 1,500 yuan to 479,000 The price of neodymium oxide rose by 7,500 yuan to 476,500 yuan; the price of neodymium metal rose by 7,500 yuan to 582,500 yuan; the price of praseodymium oxide rose by 10,000 yuan to 560,000 yuan

CITIC Securities believes that there are four core logics in this round of the rare earth sector's long bull: First, the liquidity is reasonable and abundant
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The central bank has recently implemented multiple reverse repurchases, and the overall market liquidity is reasonably sufficient

"After the outbreak in the first quarter and the callback in the second quarter, the rare earth sector may rise again in the third and fourth quarters, and the time for the deployment of the entire rare earth industry chain has arrived
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" CITIC Securities analysts believe

According to estimates by Zhongtai Securities, the demand for new energy vehicles has accounted for 7% to 8% of the total demand for rare earth permanent magnets, so the demand for new energy vehicles cannot be ignored
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Combining the relationship between supply and demand, Zhongtai Securities believes that demand for rare earths is expected to enter a mid-to-long-term business cycle, and demand will exceed supply in the next three years

Tianfeng Securities pointed out that the structural turning point of supply and demand is coming, the demand for high-end magnetic materials is increasing, and the profit margin of the rare earth industry chain is opened
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The leading magnetic material factory continues to expand, and the linked increase in the price of light and heavy rare earths brought about by the demand for replenishment is expected to continue, and the gross profit rate of the industrial chain has fully returned