At the start of November, disruptions in Myanmar’s rare earth supply have once again drawn attention to the rare earth sector. Following price hikes in September and October, Northern Rare Earth (600111.SH) continued to slightly increase listing prices in November.
According to sources from within the industry, the reduction in Myanmar’s rare earth supply has significantly impacted China’s heavy rare earth resources. The ongoing suspension of mining in Myanmar is expected to continue affecting the market for some time. Industry experts believe the rare earth sector may be set for a rebound.
Myanmar Rare Earth Mines Remain Shut, Supply Recovery Unlikely This Year
Myanmar, the world’s third-largest producer of rare earth raw materials, is also a key source of rare earth for China. According to customs data, China imported 31,000 tons of rare earth oxides from Myanmar between January and September, accounting for 74.9% of total oxide imports over that period.
The supply disruptions from Myanmar, combined with the recent implementation of China’s Rare Earth Management Regulations on October 1, have compressed supply. Several institutions have expressed optimism about future market trends, reigniting enthusiasm for rare earth stocks. On November 1, A-shares such as Northern Rare Earth and China Rare Earth (000831.SZ) reached the daily trading limit, with rare earth stocks in Hong Kong rallying as well.
“Since 2022, the rare earth industry has entered a downtrend and is currently in a stabilization phase with signs of a rebound,” said a representative from Northern Rare Earth to reporters.
The spokesperson noted that Myanmar’s decreased supply will likely continue to affect domestic heavy rare earth resources. The Bayan Obo mine has a heavy rare earth content of approximately 2%, and Northern Rare Earth also has some heavy rare earth products in production.
China Rare Earth officials added that while the exact impact and duration of the situation are uncertain, the company’s own mining operations are actively supplying raw materials to ensure stability. The rare earth industry is significantly impacted by controlled production quotas, and the company follows these regulations closely.
In a research report released on October 31, Huatai Securities noted that the suspension of Myanmar’s mines, coupled with environmental restrictions on domestic heavy rare earth production, could result in a shortage of heavy rare earth supply.
[Source – 上海有色网] 中信证券：当前锂价已经超跌 锂板块有望反弹 https://news.smm.cn/news/103033393
