The China Rare Earth Industry Association reported that the Rare Earth Price Index showed a generally volatile upward trend in July. In the light rare earth segment, the average price of praseodymium neodymium oxide rose 6.6% month-on-month, while the average price of praseodymium neodymium metal increased 6.4%. For heavy rare earths, the average price of dysprosium oxide climbed 3.9% in July, and the average price of dysprosium iron alloy rose 4.0% month-on-month. With supply constraints from tightened mining quotas and upgraded export controls, combined with the potential resumption of downstream stockpiling demand from mid-to-late August, the value of the rare earth industry chain is expected to become increasingly prominent.
The rare earth sector has remained active recently, with market capital attention continuing to heat up. The market's first rare earth industry theme ETF (launched 26/2/2021), the Huatai-PineBridge Rare Earth ETF (516780), has seen net capital inflows on 6 of the 8 trading days in August so far, attracting a total of 196 million yuan this month. As of 12/8/2026, the product's latest share count reached 2.476 billion units, with a latest scale of 2.172 billion yuan. Its share count has grown by over 55% in the last three months, giving it an advantage in both scale and liquidity.
Where to Focus
The export structure of low volume and high prices is reshaping the global rare earth trade landscape. From January to July 2026, China's total rare earth export volume was 34,706.3 tonnes, a year-on-year decrease of 10%. More notably, while export volumes declined, the average export price doubled year-on-year. This combination of falling volume and rising prices clearly outlines the pricing logic of resource scarcity. Under export controls, rare earth export quotas are tightening, narrowing the bargaining space for overseas buyers. The increasing concentration of production capacity in domestic smelting and separation sectors is expected to further highlight the important value of rare earths as a key strategic resource for self-reliance.
Reasons for Dual Support
On the demand side, peak season stockpiling and emerging demand are expected to provide dual support for the rare earth industry chain. Enterprise stockpiling was at a low level in July. The "Golden September and Silver October" period is a traditional peak consumption season, and market expectations for a demand recovery remain strong, with a possible restart of downstream stockpiling from mid-to-late August. Additionally, amid the impact of oil and gas supply shocks, energy security has risen in priority within national policy considerations. Demand for downstream products like wind power and new energy vehicles is expected to be higher in the second half of 2026 compared to the first half. In the medium to long term, emerging sectors such as the official commercialization of L3-level autonomous driving, humanoid robots, and the low-altitude economy may open up incremental space for permanent magnet materials. With rigid supply and growing demand, the price center is expected to move upward.
It is reported that the Huatai-PineBridge Rare Earth ETF (516780) closely tracks the CSI Rare Earth Industry Index. This index selects listed companies involved in rare earth mining, processing, trading, and applications as samples to reflect the overall performance of listed companies in the rare earth industry. Its top five constituent stocks are Northern Rare Earth, Baotou Steel Union, Aluminum Corporation of China, China Rare Earth Resources, and GEM Co., Ltd, all of which are leading companies with strong competitiveness in the industry. Investors can use the Huatai-PineBridge Rare Earth ETF (516780) to help position for the value revaluation opportunity driven by the dual engines of upgrading rare earths' strategic importance in great power competition and tightening supply-demand dynamics.
According to the product's 2025 annual report, as of December 31, 2025, the Huatai-PineBridge Rare Earth ETF (516780) had 60,300 holders, making it the only rare earth-themed ETF in the entire market with over 50,000 holders during that period. The Huatai-PineBridge Rare Earth ETF (516780) and its feeder funds (Class A 014331, Class C 014332) are managed by Huatai-PineBridge Fund, one of the earliest ETF managers in China. With over 19 years of deep experience in index investing, the company has created index tools for investors like the Huatai-PineBridge CSI 300 ETF (510300) and the Huatai-PineBridge CSI A500 ETF (563360), which are transparent, convenient to trade, and low-cost. As of June 30, 2026, the company's ETFs had generated a cumulative profit of over 180.6 billion yuan for holders in the last two years, making it one of only three public fund companies in the entire A-share market with cumulative profits exceeding 160 billion yuan during that period.