2 1 Shi Ji Jing Ji Bao Dao·2025-10-11 04:29Core Viewpoint - The announcement from Baogang Co. and Northern Rare Earth indicates an increase in the associated transaction price for rare earth concentrates for Q4 2025, reflecting a significant upward trend in pricing within the industry [1][5]. Price Adjustment - The new price for rare earth concentrates is set at 26,205 yuan/ton (excluding tax), which is an increase of 7,096 yuan/ton or 37.13% compared to the price of 19,109 yuan/ton in Q3 2025 [5]. - This marks the fifth consecutive increase in the transaction price of rare earth concentrates, with previous quarterly prices showing a consistent upward trend [5][6]. Historical Price Data - Historical prices for rare earth concentrates over the past five quarters are as follows: - Q3 2025: 19,109 yuan/ton - Q2 2025: 18,825 yuan/ton - Q1 2025: 18,618 yuan/ton - Q4 2024: 17,782 yuan/ton - Q3 2024: 16,741 yuan/ton - Q2 2024: 16,792 yuan/ton - Q1 2024: 20,737 yuan/ton [6]. Pricing Mechanism - The pricing mechanism for rare earth concentrates has been in place for over two years, allowing for quarterly adjustments based on a predetermined formula [7]. - The management team calculates and adjusts the prices at the beginning of each quarter, ensuring that the pricing remains aligned with market conditions [7]. Company Performance - Northern Rare Earth has projected a net profit of 1.51 billion to 1.57 billion yuan for the first three quarters of 2023, representing a year-on-year increase of 272.54% to 287.34% [7]. - The company also expects a non-recurring net profit of 1.33 billion to 1.39 billion yuan, reflecting a substantial year-on-year increase of 399.90% to 422.46% [7]. Market Trends - The rare earth industry is experiencing a recovery in profitability, with improved market conditions compared to the previous year [9]. - The average prices for praseodymium and neodymium metals have increased by 11.9% and 12.7% respectively in the first half of the year, indicating a positive trend in demand and pricing [10]. - Northern Rare Earth reported significant growth in sales volumes across its main product lines, with praseodymium and neodymium product sales reaching historical highs [10][11]. Profitability Recovery - Northern Rare Earth has ended a two-year decline in profitability, with other companies in the sector also showing similar recovery trends [12]. - The average profit growth rate for four major companies, including Northern Rare Earth, has reached 723%, with Northern Rare Earth alone seeing a staggering increase of 1,952% in net profit [14].