CITIC Securities: The increase in rare earth mining quotas has slowed significantly, improving the bottom structure of the zone

According to the research report of CITIC Securities, the total control indicators for the second batch of rare earth mining and smelting separation in 2024 were announced recently, with 125,990 tons of light rare earths, 9,010 tons of medium-heavy rare earths, and 127,000 tons of smelting separation. Therefore, the total indicators for the first two batches in 2024 are 250,850 tons of light rare earths, 19,150 tons of medium-heavy rare earths, and 254,000 tons of smelting separation. The mining quota for medium-heavy rare earths has remained at 19,150 tons in recent years, while the mining quota for light rare earths has only increased by 6.4% compared to 2023, with a significant slowdown compared to the growth rates of 23.2%, 28.2%, and 23.6% from 2021 to 2023. The recent rare earth prices have been stable and rising. With the approaching peak season downstream, increased orders and improved transactions, the role of supply and demand in supporting prices is gradually strengthening. Rare earths are currently in the bottom range, and with the release of the latest rare earth quotas, the industry landscape will gradually improve, providing opportunities to follow the upward trend of the rare earth magnet zone.