Ge Long Hui·2025-07-10 16:12Core Viewpoint - Northern Rare Earth and Baotou Steel have announced a price increase for rare earth concentrate, adjusting the price to 19,109 yuan/ton (excluding tax) for the third quarter of 2025, marking the fourth consecutive quarter of price hikes [1][7]. Group 1: Price Adjustments - The new price for rare earth concentrate is set at 19,109 yuan/ton (dry weight, REO=50%), with a price adjustment of 382.18 yuan/ton for every 1% change in REO content [1]. - The price increase trend began in the fourth quarter of last year, with the price rising from 16,741 yuan/ton in the third quarter to 17,782 yuan/ton, followed by further increases to 18,618 yuan/ton in the first quarter of 2025 and 18,825 yuan/ton in the second quarter, resulting in a cumulative increase of 14.14% [7]. Group 2: Company Performance - Northern Rare Earth has reported a significant increase in its performance, with expected net profit for the first half of 2025 projected between 90 million to 96 million yuan, representing a year-on-year increase of 1,882.54% to 2,014.71% [7]. - The company attributes its performance growth to effective market strategies, cost reduction, and enhanced production efficiency, leveraging the advantages of the domestic market [7]. Group 3: Market Outlook - The rare earth market is expected to continue its upward trend, supported by improved market activity following breakthroughs in US-China trade negotiations and a tightening supply situation due to stagnant US imports and seasonal impacts on imports from Myanmar [9]. - Northern Rare Earth maintains a positive outlook on future rare earth prices, citing a full order book for its subsidiary, Inner Mongolia Northern Rare Earth Magnetic Materials Co., Ltd. [9]. - Analysts from Guotai Junan Securities suggest that the rare earth sector is transitioning from the second phase to the third phase of its market cycle, with expectations of price and stock price synchronization as demand from overseas replenishment and domestic electric vehicle markets increase [10].