CITIC Securities: rare earth prices are expected to make steady progress in 2022

According to the research report released by CITIC Securities, with the continuous outbreak of demand for new energy vehicles, the downstream demand for wind power and energy-saving variable frequency air conditioning under carbon neutralization has made steady progress, and the downstream demand for rare earth is expected to continue to improve; It is expected that during the "14th five year plan" period, the domestic rare earth supply will still be limited by the total mining index, the supply side high-pressure policies such as anti Mafia and environmental protection will continue, the overseas supply increment will be relatively limited in the next five years, and the global rare earth supply and demand may be in a tight balance for a long time.

CITIC expects that rare earth prices may make steady progress in 2022, and the profits of companies related to the rare earth industry chain are expected to grow continuously in the long term. It is continuously recommended to pay attention to the strategic allocation value of the whole rare earth industry chain.