Zheng Quan Shi Bao·2025-08-13 05:51Core Viewpoint - Baogang Co., Ltd. has announced an increase in the price of rare earth concentrate for related transactions, benefiting from rising rare earth prices, with price adjustments occurring for four consecutive quarters since Q4 2024 [1] Group 1: Price Adjustments and Financial Impact - The price for rare earth concentrate is set to be adjusted to 19,100 RMB/ton (excluding tax) for Q3 2025, reflecting a 1.5% increase from Q2 2025 and a 14% increase from Q3 2024 [1] - Baogang Co., Ltd. expects its related sales to Northern Rare Earth to exceed 10.6 billion RMB in 2025, driven by anticipated price increases [2] - The price adjustment is based on a formula that considers the average prices of various rare earth oxides from the previous quarter [2] Group 2: Market Conditions and Performance - The rare earth market is expected to maintain a tight supply-demand balance, with prices likely to remain high [1] - Northern Rare Earth has projected a significant increase in net profit for the first half of 2025, with estimates ranging from 900 million to 960 million RMB, representing a year-on-year growth of 1882% to 2014% [3] - The domestic rare earth price index has risen by 13% since the beginning of the year, indicating a recovery in the market [3][4] Group 3: Supply and Demand Dynamics - Supply constraints are noted, with U.S. imports stagnant and reduced imports from Myanmar due to seasonal impacts, leading to a tight overall market supply [4] - Domestic consumption demand remains stable, with some downstream companies obtaining export licenses, contributing to a slight recovery in overseas orders [4] - Northern Rare Earth has expressed optimism regarding future rare earth price trends, supported by a full order book for its subsidiary [5]