Price increase ignites enthusiasm in the capital market, Baogang Steel and Northern Rare Earth hit the daily limit on their first trading day

On February 25th, the rare earth permanent magnet sector experienced a major surge, with Baogang Steel (600010.SH), Northern Rare Earth (600111.SH), and China Minmetals Nonferrous Metals (000758.SZ) hitting the daily limit-up. China Rare Earth (600259.SH), Jiuling Technology (920505.BJ), China Rare Earth Holdings (000831.SZ), Dadi Bear (688077.SH), and Xici Technology (920061.BJ) also rose along with them.

On the news front, prices for heavy rare earths have risen significantly. Yttrium and europium prices surged to $850 per kilogram, dysprosium reached $1,100 per kilogram, and supply concerns persist, reaching the highest levels since 2015.

Analysts believe that the domestic rare earth prices are expected to continue rising, with the industry likely to maintain high growth in the first quarter of 2026. In the long term, the supply-demand relationship in the rare earth industry is steadily improving. On the supply side, mining and smelting are subject to total volume controls, with domestic growth rates slowing down, leading to supply growth lagging behind demand expansion. On the demand side, rapid development in industries such as robotics, low-altitude economy, and military applications is driving demand. Additionally, high overseas smelting costs and other factors also support prices, and the strategic value of rare earths is expected to be re-evaluated.