Two Industry Giants Announce Rare Earth Price Hike of 284 Yuan per Tonne

On July 10, China Northern Rare Earth Group High-Tech Co., Ltd. (600111.SH) and Baotou Steel (600010.SH) jointly announced revised transaction prices for rare earth concentrate in the third quarter of 2025. The updated price is set at 19,109 yuan per tonne (excluding tax, calculated on a dry-weight basis with 50% REO content). A price adjustment of 382.18 yuan per tonne will apply for each 1% variation in REO content. This marks a 1.5% increase—or 284 yuan per tonne—compared to the previous quarter's rate of 18,825 yuan.

Looking back over the past year, the price trajectory for rare earth concentrate has been consistently upward, rising from 16,792 yuan per tonne in Q2 2024 to the latest figure. Since April 1, 2023, the price-setting mechanism has followed a fixed formula established by China Northern Rare Earth, recalculated in the first ten days of each quarter in coordination with Baotou Steel, with supply agreements renewed accordingly.

As of market close on July 10, China Northern Rare Earth shares surged to the daily limit, positioning its market capitalization at 97.643 billion yuan. Baotou Steel shares rose 4.4%, lifting its market valuation to 86.048 billion yuan. In a forecast released on July 9, China Northern Rare Earth projected first-half 2025 net profit attributable to shareholders to reach between 900 million and 960 million yuan—an annual growth of 1882.54% to 2014.71%. Excluding non-recurring gains, the adjusted net profit is expected to fall between 880 million and 940 million yuan, reflecting an increase of 5538.33% to 5922.76% year-on-year.

In a recent investor briefing held in late June, the company noted that improved downstream policy-driven demand, coupled with tight upstream raw material availability, contributed to elevated market momentum in early 2025. Leveraging favorable conditions, China Northern Rare Earth enhanced operational efficiency, streamlined its material and product portfolio, expanded sales channels, and deepened internal reforms—resulting in record production and sales volumes.

Founded in 1961, China Northern Rare Earth operates under the Baogang Group and holds a prominent role in Inner Mongolia’s industrial sector. Recognized as a pioneer in China’s rare earth industry, the company debuted on the Shanghai Stock Exchange in 1997 and is widely referred to as “China’s First Rare Earth Stock.” Baotou Steel, originally known as Baogang Group and established in 1954, specializes in rare earth steel production and was listed on the same exchange in March 2001.

In a recent sector analysis, SDIC Securities projected that rare earth production quota growth will decelerate in 2025. On the consumption side, robust expansion is expected across electric vehicles, wind energy, and household appliance sectors. Humanoid robotics is also anticipated to enter mass production, becoming a prominent driver for high-performance NdFeB magnets—with key magnetic material suppliers already fulfilling bulk orders.

The report further predicts tightening global supply for praseodymium-neodymium oxide, pushing prices upward. As export volumes recover, the disparity between domestic and international heavy rare earth prices may narrow. Consequently, prices for dysprosium and terbium oxide are projected to climb. GF Securities noted that amid ongoing tariff uncertainties, stricter control over China’s rare earth mining quotas is likely, reinforcing the strategic role of permanent magnet materials within the broader industry landscape.