The Baotou Rare Earth Products Exchange announced on January 9 that the Rare Earth Price Index has been officially launched simultaneously on its official website, WeChat official account, and platforms including China Financial Information Network, Xinhua Finance Professional Terminal, and the Xinhua Finance App. The exchange stated that the index is compiled using the platform's own transaction data, extensively collected real and compliant trade data, and a rigorous index model developed in conjunction with research institutions, covering mainstream rare earth market products such as Lanthanum, Cerium, Praseodymium, and Neodymium. Established with capital contributions from 13 major central and local rare earth backbone enterprises and related institutions, including China Northern Rare Earth, China Rare Earth, China Nonferrous Metal Industry's Foreign Engineering and Construction, and Xiamen Tungsten, the exchange represents a significant consolidation of industry players. Furthermore, after market close on January 9, Baotou Steel and China Northern Rare Earth announced plans to adjust the price of associated rare earth concentrate transactions for the first quarter of 2026 to 26,834 yuan per ton (dry weight, REO=50%), excluding tax, representing a 2.4% increase from the previous quarter. Baotou Steel's rare earth concentrate production line is the world's largest rare earth raw material base, with an annual production capacity of 450,000 tons of rare earth concentrate, which serves as the primary procurement raw material for China Northern Rare Earth's production and operations. China Northern Rare Earth is the largest supplier of light rare earth products in China and globally, and is one of the six major rare earth groups in China's rare earth industry. According to USGS data, China's rare earth resource reserves account for approximately 40% of the global total, characterized by a distribution of heavy rare earths in the south and light rare earths in the north, possessing relatively abundant medium and heavy rare earth resources with higher strategic value. Since the third quarter of 2024, the transaction price for rare earth concentrate has achieved six consecutive increases. Data compiled by the China Rare Earth Industry Association shows that the majority of rare earth prices increased from January to December 2025; for instance, in light rare earths, the average price of Neodymium Oxide was 508,700 yuan per ton, a year-on-year increase of 27.4%. Similarly, in heavy rare earths, the average price of 99.99% Terbium Oxide was 6.7387 million yuan per ton, a year-on-year increase of 17.2%, while the average price of Terbium Metal was 8.3591 million yuan per ton, a year-on-year increase of 16.5%. The recovery in rare earth prices has also driven the performance of related listed companies higher. China Northern Rare Earth disclosed its third-quarter report for 2025, reporting revenue of 30.292 billion yuan for the first three quarters, a year-on-year increase of 40.50%, and net profit attributable to shareholders of 1.541 billion yuan, a surge of 280.27% year-on-year. Baotou Steel disclosed its third-quarter report for 2025, achieving revenue of 48.08 billion yuan in the first three quarters, a slight decrease of 3.58% year-on-year, but net profit attributable to shareholders turned positive to 233 million yuan, reversing a loss from the same period last year. Zhongtai Securities released a research report stating that as the industrial structure optimizes and integration mechanisms mature, China's rare earth sector has become a crucial strategic link in the global high-tech industry chain. Against the backdrop of intensifying US-China tech competition, rare earths, as an important resource lever controllable by China, possess strong geopolitical attributes, and the report recommends focusing on resource-based enterprises with high concentration and significant barriers. From the demand perspective, rare earth permanent magnets represent the largest consumption area for rare earths and are maintaining rapid growth. The new energy vehicle sector is poised to become the most robust downstream demand driver for high-performance NdFeB permanent magnet materials, expected to account for approximately 50% of future demand. CSC Financial believes that rare earth demand is experiencing high growth, with a projected Compound Annual Growth Rate exceeding 13% over the next three years. Driven by rapid growth in areas such as new energy vehicles, energy-efficient motors, and wind power generation, the demand for high-performance NdFeB magnets is forecast to reach 212,000 tons by 2027, with an average annual compound growth rate of 13%. Related concept stocks: JLMAG announced that the group expects net profit attributable to shareholders for the first three quarters of 2025 to be between 505 million and 550 million yuan, an increase of 157% to 179% year-on-year. Public information shows that CHINA RAREEARTH, formerly known as Yixing Xinwei Holdings Limited, is primarily engaged in the manufacturing and sales of rare earth and refractory products. Galaxy Securities issued a research report initiating coverage on MMG with a "Recommend" rating; expecting the company's revenue for 2025 to 2027 to reach HKD 48.3 billion, HKD 64.5 billion, and HKD 68.7 billion respectively, with net profit attributable to shareholders reaching HKD 5.6 billion, HKD 10.4 billion, and HKD 12.1 billion. As a leading enterprise in China's aluminum industry, Aluminum Corporation of China Limited is a large-scale aluminum production and operation company integrating the exploration and mining of resources like bauxite and coal, with production, sales, and R&D of alumina, primary aluminum, aluminum alloys, and carbon products, as well as thermal and new energy power generation.
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