Although it is generally believed in the industry that rare earth prices will remain high in 2022, the relative stability of prices has been the consensus of the industry, which is conducive to the stability of the profit space of downstream magnetic material enterprises to a certain extent.
On the news side, China Rare Earth Group Co., Ltd. was officially established on December 23 last year. Some industry analysts said that the further integration of rare earth resources means that the supply side pattern is continuously optimized. For downstream magnetic material enterprises, there can be resource guarantee, get better and higher quality resources, and the price is expected to stabilize.
Zhaobao analysts believe that if the price of upstream raw materials is relatively stable in 2022, the capital and order receiving pressure will be greatly reduced for permanent magnet enterprises downstream of the industrial chain, and the gross profit margin of product price increase of permanent magnet enterprises will be slightly increased on the premise of increasing demand for permanent magnet materials by terminal enterprises. CICC also mentioned that rare earth prices are expected to remain high in 2022, and the profit per ton of magnetic materials is expected to usher in a trend upward period.
“Rare earth magnetic material enterprises are relatively scattered. Under the condition of relatively clear downstream demand growth, leading enterprises with capital, technology and cost advantages continue to expand production. “The above-mentioned enterprises frankly say that those enterprises that release production capacity quickly and can get enough orders to digest will certainly be better and better. Accordingly, the market share of the leading enterprises will continue to increase after expansion, and the concentration of rare earth permanent magnet industry may further increase.
Post time: Mar-09-2022
