Rare earth product prices accelerate upward, Rare Earth ETF E Fund rises 1.54%

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As of 1:55 PM on February 24, the Shanghai Composite Index increased by 0.91%, the Shenzhen Component Index rose by 1.49%, and the ChiNext Index gained 1.30%. In terms of ETFs, E Fund Rare Earth ETF (159715) increased by 1.54%, with constituent stocks Boke New Materials (300811.SZ) and Shengxin Lithium Energy (002240.SZ) rising over 5%. Other stocks such as Goldwind Technology (002202.SZ), China Minmetals (000758.SZ), Xiangdian Electric (600416.SH), China Rare Earth (600259.SH), Benlang New Materials (920807.BJ), China Rare Earth (000831.SZ), Zhaoguo Wanfang (000612.SZ), and Jingyuntong (601908.SH) also increased.

In news, data from Baichuan Yingfu shows that rare earth product prices are accelerating upward. Prices of main rare earth products like praseodymium-neodymium oxides have recently continued to rise, with spot supplies tight. Downstream magnetic material companies have procurement needs, jointly driving prices higher.

Huafu Securities stated that, approaching the Spring Festival holiday, market inquiry and quotation activity for rare earths was relatively low. Early in the week, the market for light rare earth praseodymium and neodymium was mainly influenced by external funds and futures trading, with some high-priced quotes. The overall performance of the medium and heavy rare earth market was relatively flat, mainly due to weak demand from permanent magnet companies, resulting in fewer transactions. The overall rare earth market is paying attention to post-holiday trends. Currently, the rare earth market is more influenced by financial factors than in previous years, and overall price fluctuations are expected to be more pronounced.

Guoxin Securities pointed out that key minerals have become a focus for many countries, mainly due to concerns over supply chain security. In this context, we believe that the resource attributes of key minerals will become increasingly prominent, making prices more likely to rise than fall. Companies holding key mineral resources can consider focused allocation.

E Fund Rare Earth ETF (159715) focuses on national strategic resources, positioning in the global advantageous industrial chain, with management + custody fee rates of only 0.15% + 0.05% per year, significantly lower than similar products linked to the CSI Rare Earth Industry Index. It can serve as a high-quality tool to seize opportunities in the rare earth industry!

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