Zheng Quan Shi Bao Wang·2025-08-07 06:13Core Viewpoint - The rare earth sector experienced a significant rally, with companies like Zhenghai Magnetic Materials and Aishi Chuang hitting a 20% limit up, driven by increased demand and easing export controls [1] Industry Summary - The rare earth industry entered a traditional consumption peak in August, leading to a rebound in downstream demand and increased procurement [1] - According to SMM, some major manufacturers in the magnetic materials sector have orders scheduled through mid-September, indicating strong demand [1] - The supply side has been affected by US-China tariff conflicts and political issues in Myanmar, resulting in a notable decline in domestic rare earth product imports in the first half of the year [1] Market Outlook - Xiangcai Securities noted that the ongoing supply tightness combined with steady demand is likely to support prices in the short term, leading to an optimistic market sentiment [1] - The expectation of supply contraction and the easing of export controls are anticipated to create additional demand, benefiting rare earth resource companies from rising prices [1] - In the medium to long term, as rare earth prices gradually recover, profitability for downstream magnetic material companies is expected to improve, particularly for companies like Jinli Permanent Magnet, which has a solid customer structure and growth potential [1]