Zheng Quan Shi Bao Wang·2025-10-10 12:00Core Viewpoint - The announcement of price increases for rare earth concentrates by Baotou Steel (600010) and Northern Rare Earth (600111) indicates a significant upward trend in the market, with a 37.13% increase in prices from the previous quarter [1][2]. Group 1: Price Adjustments - Northern Rare Earth has adjusted the price of rare earth concentrates for Q4 2025 to 26,205 CNY/ton (excluding tax, dry weight, REO=50%), with a price change of 524.10 CNY/ton for every 1% change in REO [1][2]. - Baotou Steel has also set the same price of 26,205 CNY/ton for Q4 2025, following the same pricing mechanism established in their annual shareholder meeting [1][2]. - The price for rare earth concentrates was previously set at 19,109 CNY/ton for Q3 2025, indicating a substantial increase in the upcoming quarter [1][3]. Group 2: Market Position and Production - China holds the largest global reserves and production of rare earth elements, accounting for nearly 50% of global reserves and about 70% of global production [2]. - The pricing adjustment mechanism between Northern Rare Earth and Baotou Steel has been in place since April 1, 2023, ensuring synchronized pricing adjustments each quarter [2]. - Baotou Steel holds a 38.03% stake in Northern Rare Earth and a 55.38% stake in Baotou Steel, indicating a strong inter-company relationship [2]. Group 3: Financial Performance - Northern Rare Earth expects a significant increase in net profit for the first three quarters of 2025, projecting a net profit of 1.51 billion to 1.57 billion CNY, representing a year-on-year increase of 272.54% to 287.34% [3]. - The company has focused on ensuring raw material supply and adapting to market demand, leading to growth in the production and sales of key products such as rare earth metals and permanent magnet motors [3].