Tungsten Products Prices Rebounded and Capacity Release Aid Performance Warmer

Tungsten concentrate prices are expected to gradually rise. By the sluggish downstream demand, the weak trend of prices of non-ferrous metals, carbide as the main downstream tungsten concentrate continued to fall since 2012, the recent 65% wolframite mainstream transaction price stabilized at 113,000 yuan / ton. Taking into account the industry restrictive mining policies continue to strengthen, March domestic enterprises gradually started to bring increased stocking requirements, prices are expected to gradually rise. Long term, continue to promote urbanization will constitute support the demand for high-end carbide as tungsten industry leader, the company's future resource value is huge room for improvement. 

The carbide and Cicai gradually put into operation. The company's high-end NdFeB 2013 production capacity of 2,000 tons, part of the new energy supply to the downstream motor vehicle customers, into the production season, magnetics downstream enterprise orders will ring than to improve the level of short-term positive company earnings improved. In addition, a project the scale of construction in Jiujiang Golden Heron Carbide for an annual output of 3,000 tons of tungsten powder and 2,000 tons of carbide, is expected to put into operation by the end of 2013, the source of profits rely mainly on tungsten alloy bar, high-end products CNC blade and PCB micro-drilling business contributed little to the overall profit of the company. 

Rare Earth integration is expected to enhance the management's confidence. Of Fujian Rare Earth Group in December 2012, the average price of 28.13 yuan / share holdings of shares of 119.47 million shares, accounting for 0.175% of the share capital, and plans to continue to choose the holdings in the next 12 months, according to the market, the proportion of the total share capital between 0.5% to 2%. One of the main integration platform as the the global tungsten industry leaders and the heavy rare earth resources, large shareholder's holdings that have confidence in the company's future prospects. 

Earnings forecasts. The company expects EPS for 2012-2014 were 0.77, 0.93 and 0.20, respectively, corresponding to 53,44, and 34 times the current share price PE valuation higher than the industry average, the specific rating please pay attention to the follow-up report.

 

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Strive to Get a Rapid Breakthrough in Prospecting Uranium,Copper and Tungsten Ore

March 4, Central Geological Prospecting Fund Management Center in Nanchang, and the Office of Land and Resources jointly held a program review will be prospecting seminar-cum-implementation of uranium, copper tungsten breakthroughs in key areas of Jiangxi Province, experts and scholars from across the country attended the meeting. Vice Governor Yao Mugen, attended the meeting and delivered a speech.

Uranium, copper, tungsten ore is the dominant mineral in Jiangxi Province, and played an important role in its economic construction in Jiangxi Province. Decades, Jiangxi Province submitted uranium reserves ranking first, exploration and development of copper resources to promote the national copper industry bases in Jiangxi Province, the cumulative proven reserves of tungsten ore forefront of the nation. It is understood that the Central Geological Prospecting Fund Management Center Jiangxi Province, uranium, copper, tungsten mine as breakthroughs in key areas designed to select key areas, and strive to put in more money in a relatively short period of time, and strive to achieve prospecting the fast break, Jiangxi better provincial mineral resource advantages into economic advantages.

 

Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
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The Market Differences Increase With the Tungsten Season Approaching

Rare earth industry upstream dynamic: the lanthanum cerium-light rare earth prices decline. The first 8-9 weeks of 2013, cerium oxide, lanthanum oxide, cerium carbonate, lanthanum chloride, lanthanum, cerium metal prices were down by 6.38%, 6.38%, 8.33%, 15.38%, and 4%, respectively. Upstream producers shipping difficulties, there are a large number of store goods, compared to non-dominant and private mineral separation plants, there is pressure on the sales; cautious attitude among traders, the intention of the hoard goods declined, basic alone. 

Downstream of the rare earth industry dynamics: phosphor prices fell slightly.Trichromatic phosphor 2700K and 6500K prices fell by 4.85% and 1.18% respectively.The NdFeB market enterprises operating rate, the the orders more stable, and small and medium-sized enterprises operating rate at 3-5. Hydrogen storage alloy, rare earth polishing powder market is poor. The automotive, consumer electronics and other magnetics downstream industries have signs of recovery the expected the 3,4 months Magnets downstream demand has been warmer, warmer magnitude to be confirmed. 

Increase market differences. The bullish view market into the season, downstream operating rates improve, increasing the demand for rare earth, and with the two sessions, the earth as the focus on the protection of resources, policy stimulus Xu rebound; bearish view, rare earth market seriously for greater than demand, weak demand for downstream processing enterprises, the capacity is too large, macroeconomic downturn situation did not improve the global demand for rare earth, rare earth prices are still facing downward space; see steady view, although the rare earth market supply and demand serious balance, but the rare earth prices close to cost, most manufacturers said that the low price merchants would rather stop production nor shipping. We see the flat this month, the price of rare earth, rare earth prices to see more than two months. On the one hand, the majority of rare earth species prices have basically back to the beginning of 2011, that the initial position of this wave of rare earth price gains continue to be little room for further reduction. On the other hand, in March and April, the traditional peak season of the rare earth demand and prices have some support. 

Industry dynamics and company News: Ganzhou Rare Earth Group acquired Longnan Kai-liter 60% stake; Ganzhou, Jiangxi 7 joint establishment of Rare Earth Group; Ganzhou accelerate the formation of the pace of the Southern Rare Earth Group; introduction of the semiconductor lighting energy-saving industrial planning; vanadium and titanium in Sichuan by the letter of Commission steel and rare earth industry research; rare earth resources in Yunnan is expected to be 140,000 tons; U.S. Senate proposed funding Bokan Mountain rare earth project; Baotou Steel Rare Earth intends resumed in early March; Kinwa matters concerning the acquisition of rare earth assets continue to be suspended; the morning light rare earth backdoor hopeless S * ST Tianfa claims 40 million; Lynas Malaysia rare earth refinery production. 

Industry investment strategy: rare earth industry around integration + demand "mainline mining. We believe that the excavation from industry consolidation prospects and demand-side changes. First, provincial-level rare earth industry merger and reorganization to become the focus of attention of the rare earth market parties Sustainable concern. Second, the the postganglionic downstream market demand will improve, driven by the downturn has been a long time in the rare earth industry rebound, is to confirm whether the rare earth industry key success bottoms. Individual stocks, concern Xiamen Tungsten, Zhong Ke San Huan, * ST Guanlv.

 

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Guangxi Sixth Geological Team Prospecting a Major Breakthrough by Provening 80,000 Tons of Tungsten Ore Resources

Bobai County, Guangxi sixth geological team implemented the trigeminal red mine tungsten ore detailed investigation projects for geological prospecting second prize in the recently held National Nonferrous Metal Mining Conference on.

The the the Bobai County the trigeminal red tungsten mine is located in the southwest section of Chin Hang metallogenic belt (Guangxi segment) Bobai to Cenxi lead and zinc tungsten gold and silver polymetallic ore belt, Sixth Geological Team of Guangxi in the eighties of the last century in this bring work. The use of state funds since 2003, the team in Bobai trigeminal rushed to carry out prospecting work and achieved certain results, but due to financial and technical reasons, no major breakthrough. Since 2007, the team co-operation with China Minmetals, resolve the the prospecting funding problems. The use of secondary development team geological and technical personnel of existing geological data, the new theory of prospecting, prospecting ideas, prospecting model applied to work in practice. After several years of efforts, the proven resources of tungsten ore 80,000 tons, deposit scale to large scale, and the prospect of further expanding resource reserves, to achieve a major breakthrough of the prospecting.

 

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March 5, 2013 Tungsten Market Guidance:No Follow-up Transaction and Prices is Stable

Tight supply of tungsten ore market exercise alone, but the actual transaction did not follow up; the the APT quoted firm, part of the business continued to wait and see, tungsten carbide powder market is slightly confusing, the individual high prices of up to 275 yuan / kg, the corporate pressure , cautious market operation. The recent the tungsten City uplink footsteps slowdown, prices rise may be relatively small, short-term price of tungsten or remain steadily trend is expected to run.

Macro level, the Development and Reform Commission, said China's 2013 total fixed asset investment is expected an increase of 18%; institutions forecast of 3% of the CPI increase in February or broken; gradual deterioration in the euro-zone economy, the ECB or ahead of interest rate cuts.

 

Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
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