Rising prices of heavy rare earths ignite performance expectations, driving a surge in the rare earth sector

The price of silver showed a high amplitude and high volatility trend before the holiday, and the market has already digested the weight of its price fluctuations in advance; On February 25th, the rare earth sector experienced a major outbreak, with Baosteel Group and Northern Rare Earth rising by the daily limit, while China Rare Metals approached the daily limit, and China Rare Earth also saw a significant increase.

Previously, the rare earth market had already experienced two rounds of upward trend. According to the Shengyi Society Rare Earth Index, rare earth prices have risen twice from July to September 2025 and January 2026 to present. Among them, rare earth related stocks rose violently in sync during the price increase period from July to September 2025, and the convergence effect was significant; However, the second wave of rare earth price increases that began in January 2026 showed a certain lag in the upward trend of related stocks before the holiday compared to the rise in rare earth prices.
From the perspective of market trading logic, changes in commodity prices directly affect the profit performance of corresponding listed companies, and commodity price increases usually lead stock price increases by 5/10/20/30 days. By paying attention to commodity price trends, buying opportunities for stocks can be discovered in advance.
The value cycle stock selection tool of Business Society Stock Connect can rely on the price increase of commodities within n days to screen hot commodities and explore investment opportunities in value cycle stocks; At the same time, it is also possible to capture buying signals for value cycle stocks by releasing commodity price increase data in advance of the quarterly and annual reports of listed companies during the quarterly reporting cycle. According to the stock news of Shengyi Society, after the holiday, four products in the bulk commodity market, namely silver, dysprosium ferroalloy, dysprosium oxide, and dysprosium metal, showed outstanding gains, with gains exceeding 5%. The significant increase in prices of heavy rare earth related categories further ignited the market’s performance expectations for the rare earth industry in the first quarter of 2026.