The Rare Earth Permanent Magnet Industry Has Maintained A High Boom, And Relevant Enterprises Have Accelerated The Expansion Of Production, Highlighting The 'siphon Effect'

Since April 2020, rare earth prices have soared. According to the data of China Rare Earth Industry Association, the rare earth price index rose from nearly 130 to more than 400, up more than 200%. As of March 16, the rare earth price index was 409.5 points.

Although the price of rare earth raw materials in the upstream fluctuated greatly, the downstream rare earth permanent magnet related companies were mostly in the state of full production and full sales in 2021, and their performance was quite bright. It is generally believed in the industry that 2022 will be a great year for the performance release of the rare earth permanent magnet industry. Enterprises that expand production, release production capacity quickly and have a high market share have more opportunities, and the industry concentration is expected to increase.

Relevant enterprises speed up production expansion to highlight the "siphon effect"

According to the calculation of CITIC Securities, the global demand for high-performance NdFeB is expected to reach more than 360000 tons in 2030, and the future demand space for rare earth permanent magnet materials has been fully opened. At the same time, the pace of production expansion of relevant enterprises is also accelerating.

"At present, the production capacity of rare earth permanent magnet materials in China is mainly concentrated in several leading enterprises, and there is a large gap between the output and the future market demand. Although relevant enterprises are busy expanding their production, it takes time to expand their production, and the situation of short supply will still exist in the short term," an industry insider who asked not to be named said in an interview with the Securities Daily