CITIC Securities says supply-demand dynamics and technology convergence warrant
a rare-earth valuation re-rating. Praseodymium-neodymium oxide averaged 731,000
yuan/ton in 1H2026, up 73.6% YoY. Supply: imports and recycling have fallen and
Domestic rare-earth management enforcement has tightened, leaving industry
supply persistently tight. Demand: EV and robotics output rose MoM, export
orders strengthened, and Tesla’s robot mass production is imminent, supporting
continued demand growth. CITIC expects a global rare-earth supply deficit likely
to widen from 2026, providing long-term price support, and continues to
recommend strategic allocation along the rare-earth chain, maintaining an
outperform sector rating.
