HK Stock Market Move | Jl Mag Rare-Earth (06680) soared over 8%, Myanmar's new resource tax may push up rare earth prices.

Jl Mag Rare-Earth (06680) surged by over 8%, as of the time of writing, rising by 7.34% to HKD 8.63, with a turnover of HKD 56.96 million. Sinolink pointed out that, according to SMM, some industry insiders revealed that the Kachin Independence Army plans to levy a resource fee of 20,000 yuan per ton on mines in the Bawdwin area of Myanmar, which will increase the cost of some Myanmar mines. Myanmar mines, as an important supplier of heavy rare earths dysprosium and terbium, and light rare earths praseodymium and neodymium, with the addition of resource fees and frequent supply disruptions, are expected to push up industry cost curves and thereby raise rare earth prices. The bank stated that since the beginning of this year, rare earth prices have bottomed out, rising by nearly 20% on the expectation of significant improvement in supply and demand and the catalytic effect of the "similar supply reform" policy, with the price center gradually rising; the Rare Earth Management Regulations have compressed supply since October 1, with Q4 peak season orders gradually being fulfilled, coupled with a rise in industry cost curves and frequent supply disruptions, the bank continues to favor a rise in rare earth prices. Recommendations for resource side include keeping an eye on Jl Mag Rare-Earth (a leading high-end magnetic material company, with a layout in humanoid Siasun Robot&Automation) and others.