HK Stock Market Move | Jl Mag Rare-Earth (06680) rose nearly 7% as Japanese and Korean MLCC leading companies fully expanded production, leading to a surge in demand for high-purity dysprosium oxide driven by the outbreak of AI high-capacity MLCC.

JL Mag Rare-Earth (06680) rose nearly 7%, reaching 6.37% at the time of writing, at HK$20.18, with a trading volume of HK$82.9032 million. On the news front, according to Citrini Research statistics, the spot and distributor prices of consumer-grade MLCCs have risen by 20% to 40% compared to before. It is worth noting that recently, Japanese and Korean MLCC leaders (Murata, Samsung Electric, and Sun Woo Electric) are ramping up production, but due to the fact that the high-purity dysprosium inventory can only support full production for one month, a global buying frenzy has been triggered, further strengthening market expectations of supply shortages. Morningstar analysts expect AI server and infrastructure investment to "continue to grow at least until 2028," providing clearer medium-term growth visibility for MLCCs and other passive components. Publicly available information shows that dysprosium oxide is a necessary material for manufacturing automotive-grade MLCCs (which need to withstand high temperatures in the engine compartment) and AI server MLCCs (which need to handle the heat generated by high power consumption). High-end MLCCs must use dysprosium oxide with a purity as high as 99.999% (5N). Guotou Securities point out that the surge in demand for high-purity dysprosium driven by AI high-capacity MLCCs is essential and has no mature alternatives. By 2027, AI-MLCCs will add 1,500 tons of dysprosium oxide demand, accounting for nearly 40% of the global total supply of 3,500 tons, completely reversing the supply-demand pattern of heavy rare earths, and entering a period of price increases.