稀土行业政策点评：政策层面加强管控力度，供需格局改善稀土迎来底部回升

Investment Rating - The report provides a positive outlook for the rare earth industry, indicating a potential recovery in prices due to improved supply-demand dynamics and stricter policy controls [1]. Core Insights - The report highlights the implementation of stricter regulations in the rare earth sector, including the introduction of management measures for mining and separation, which are expected to enhance the quality and sustainability of the industry [1]. - It notes that the contribution of imported ores and monazite to rare earth supply is significant, accounting for approximately 34% of the total supply in 2024 [1]. - The report anticipates that by 2026, supply and demand will reach a balance, leading to a recovery in rare earth prices and improved performance for companies in the rare earth magnetic materials sector [1]. Summary by Sections Policy Overview - The Ministry of Industry and Information Technology has released draft regulations to refine the implementation of the Rare Earth Management Regulations, focusing on resource protection and product traceability [1]. - The new regulations include stricter controls on mining and separation activities, limiting these to large state-supported rare earth groups [1]. Supply Dynamics - The report indicates that the tightening of supply controls will alleviate the oversupply pressure in the rare earth market, with expectations of price recovery starting from the current low levels [1]. - It emphasizes the importance of compliance among production entities, which will be restricted to large rare earth groups, thereby curbing disorderly mining practices [1]. Investment Recommendations - The report suggests focusing on key players in the rare earth sector, such as Northern Rare Earth and China Rare Earth, as well as leading companies in the magnetic materials space like Jinchuan Group and Zhongke Sanhuan [1].