Ferro-alloys.com：According to Argus Media, after this month's military coup in Myanmar, Myanmar's rare earth ore exports may be disrupted, triggering a surge in the stock prices of most listed rare earth and downstream magnet companies in China.

After the army seized power in Myanmar, the US government has promised to impose "immediate review" sanctions on Myanmar, which has raised concerns about possible cuts in the supply of raw materials.

Myanmar is the main supplier of China's rare earth ore. China relies heavily on imported rare earth ore from Myanmar, which accounts for more than 60% of the total domestic consumption of ion-adsorption rare earths.

The share price of Shenghe Resource, a Chinese rare earth separation producer, rose nearly 10% on the Shanghai Stock Exchange on February 3; while other large rare earth companies (such as China Minmetals and Northern Rare Earth) )]’S share price rose by more than 7%.

Investors are optimistic about the long-term prospects of the rare earth market, because the market expects that any shortage of raw materials in Myanmar will reduce the production of medium and heavy rare earths, thereby supporting domestic spot prices.

The prospect of Myanmar restricting exports of rare earth ore has also increased the share prices of major downstream companies, including manufacturers of permanent magnets and electric motors.

Market participants said that tightening the supply of medium and heavy rare earth raw materials may push up production costs and sales prices in the high-end magnet manufacturing market. The share price of Earth-Panda Advanced, a large magnetic material manufacturer, has risen by more than 7% today, while the share price of Broad-Ocean, an electric motor manufacturer, has risen about 8%.

Market participants said that China’s State Reserve Bureau (SRB) will conduct the third round of procurement of medium and heavy rare earths in March, coupled with strong downstream demand in the magnet industry and continued supply tensions, which may boost China’s rare earths in the long run Inventory and spot market.

The political crisis in Myanmar has not yet had any direct impact on the market. Participants in the Chinese market said that most of the country’s producers are operating normally, and China’s rare earth separation plants can normally import raw materials for the production of medium and heavy rare earths. 

• [Editor:zhaozihao]