Zhi Tong Cai Jing·2025-10-13 03:26Core Viewpoint - The recent tightening of rare earth export controls by the Chinese government is expected to impact the market dynamics significantly, leading to price increases and potential investment opportunities in companies involved in rare earth production and trading [1]. Group 1: Market Reaction - Jinli Permanent Magnet (300748) saw a surge of over 6%, trading at 27 HKD with a transaction volume of 11.87 million HKD [1]. - Baotou Steel (600010) and Northern Rare Earth (600111) announced an increase in the associated transaction prices for rare earth concentrates for Q4 2025, with Northern Rare Earth adjusting the price to 26,205 RMB/ton (excluding tax), reflecting a 37% increase quarter-on-quarter [1]. Group 2: Regulatory Changes - On October 9, the Ministry of Commerce of China announced stricter export control measures for rare earths, expanding the scope and approval requirements for exports [1]. - The new regulations include increased controls on five categories of medium and heavy rare earths, as well as restrictions on the export of equipment, technology, and raw materials across the entire industry chain [1]. Group 3: Geopolitical Context - The ongoing trade tensions between the U.S. and China have escalated, with Trump announcing additional 100% tariffs on Chinese goods starting November 1, along with export controls on critical software [1]. - According to Fengzheng Securities, the renewed tariff conflict highlights the strategic importance of rare earths, while CITIC Securities noted that the Ministry of Commerce's recent actions further solidify the strategic position of rare earths in the market [1].