本周行业反弹，产业链价格延续回落

Investment Rating - The industry investment rating is maintained at "Overweight" [3][10] Core Views - The rare earth magnetic materials industry rebounded by 3.89% this week, outperforming the benchmark (CSI 300) by 2.51 percentage points [5][12] - The industry valuation (TTM P/E) increased by 3.55 times to 95.79 times, currently at 96.3% of its historical percentile [5][12] - The supply of rare earths remains tight in the short term, with stable operations in upstream mineral separation enterprises, while waste separation enterprises are increasing output [41][42] - Demand from magnetic material companies is stable, with high operating rates among large manufacturers and a gradual release of new demand [41][42] - The overall market sentiment is cautious, with expectations of gradual price rebounds for rare earths as low-priced spot supplies decrease [41][42] Summary by Sections Market Performance - The rare earth magnetic materials industry saw a relative return of 16% over one month, 41% over three months, and 129% over twelve months [4] - Absolute returns were 25% over one month, 57% over three months, and 171% over twelve months [4] Price Trends - This week, the prices of rare earth concentrates significantly declined, with mixed carbonate rare earth ore prices dropping by 10% [9][14] - Praseodymium and neodymium prices fell initially but rebounded, while dysprosium prices stabilized after a decline [6][9] - The price of neodymium-iron-boron blanks fell by 2.71% for N35 and 1.84% for H35 [9][37] Supply and Demand Dynamics - The supply side shows a mixed trend, with some upstream mineral separation enterprises experiencing slight operational declines due to raw material constraints, while waste separation enterprises are increasing output [41][42] - Demand remains strong, supported by stable orders from large manufacturers and an increase in export quantities [41][42] Valuation and Performance Outlook - Current absolute and relative historical valuation levels are supported by loose liquidity and expectations of price increases in the industry chain [42] - The report suggests focusing on upstream rare earth resource companies that may benefit from tightening supply expectations and easing export controls [10][42] - Long-term, as rare earth prices gradually recover, downstream magnetic material companies are expected to see continued profit recovery [10][43]