According to the China Nonferrous Metals Industry Network reported that Jiangxi Nonferrous Metals Geological Exploration Bureau discovered new tungsten ore bodies. After four years of mineral geological survey, the project "Xiushui County, Jiangxi Province Wanghuojian Tungsten Ore Census" of Jiangxi Nonferrous Metals Geological Exploration Bureau was checked and accepted by expert group with a good level. Through efforts from all sides, the Exploration Bureau discovered new tungsten ore and gold ore bodies. The expert group has carefully listened to the report of results of the project.

This is another important discovery after worldwide scale tungsten ore was found in Jiangxi in 2014. This major discovery makes the tungsten resources in Jiangxi form the new pattern "Three Pillars", which consists of southern Jiangxi, northern Jiangxi, and northwestern Jiangxi. It further established the position of "World Tungsten" of Jiangxi, improving the level of protection of tungsten ore resources, consolidating the discourse power of tungsten ore for China in the world. Therefore, this discovery plays a significance role on tungsten reserves and development. Analysts believe that, A-share listed companies, Chongyi Zhangyuan Tungsten Co.,Ltd, Jiangxi Copper Corporation, Xiamen Tungsten Co.,Ltd and other relevant local companies are expected to directly benefit from it.

Tungsten and its alloys is one of important functional materials for the modern industrial, defense and high-tech applications, which are widely used in aerospace, atomic energy, shipbuilding, automotive industry, electrical industry, electronic industry, chemical industry and many other areas. China, as one of the world's largest tungsten resources reserves countries, due to irrational exploitation of rare earth, and tungsten belongs to non-renewable resources, therefore, currently it is exhausted. And new discovery of the tungsten ore in Jiangxi, will improve the situation of tungsten resources to some extent. Tungsten is important raw material for tungsten heater and other tungsten products, so tungsten ore discovery will greatly promote the mass production of tungsten related products.

The first trading week of June, China domestic tungsten market has slight fell down, and the price continues decrease slowly. APT price decreasing range and speed is higher than tungsten concentrate and tungsten powder.

In mid-May, the tungsten price is being decrease slowly, but the tungsten concentrate decline range is not so obvious. 65% tungsten concentrate price declined form highest 78,000 RMB/ton to the current 72,000 RMB/tons, down by 7.7%. Supported by mine cost, when the capital is sufficient and traders and mining mentality is still good, the price will not decline sharply. The end of May and the beginning of June, some small mines have been recovery production and the products will gradually flow to the market this month, but the quantity of tungsten concentrate production is not large. The end of May, after concentrated to release a part of tungsten concentrates stock, the tungsten ore traders who are currently showing a little reluctant to sell it, so the price is stable. They are waiting for the right time.

The price of finished tungsten products which are made by tungsten powder also decline, affected by raw material price fell down. Although tungsten powder manufacturers price adjustment appeared late, but subject to the poor turnover, in the end of May they were forced to cut prices. At the beginning of May, when raw material price increased, tungsten carbide purchase willing has become increasingly weak, because it is very difficult for alloy product to increase the price. Besides, the cost of the alloy was gradually increased to the bearable breakeven line and many manufacturers unbearable to stand it, so some alloy companies decided to reduce the production to avoid the high cost production after the rapid rise. However, the price suddenly declined at the end of May, so tungsten carbide manufacturers do not worry to buy raw material. They can buy raw material as needed and turnover is little.

The price of APT decline range and speed is relatively large. From the highest 127,000 RMB/ton fell to the lowest 111,000 RMB/ton, drop by 12.6%. In the bulk market, traders faster adjusted the price and in the mid-May quick released a part of APT in the short term to maintain the early profit and can get the cash for circulation. However, APT manufacturers’ price adjustment is relatively cautious. They are focused on the long single-oriented transactions, making price change relatively modest. Whether the price increase or slight decline, APT price not only maintains a reasonable profit, but also surrenders part of the profits to manufacturers of finished tungsten product, having strong sense for maintain old customers. This week, APT decline range and speed became slow. There is not too much APT stock at the current price. Besides, the traders cut the prices for sale is fewer, and most of them holds wait and see attitude.

As we knew, tungsten market is in the stalemate situation. So whether in raw material or in finished tungsten products, the buyers and the sellers have both been stalemate.

This week tungsten market still has some good news been announced. The guide price of Minmetals and prediction average price of Ganzhou Tungsten Industry Association which often release on 5th of every month this month will be re-released after the eight tungsten enterprises meeting on June 7, 2016.

June 7, 2016 the eight largest tungsten mining enterprises will gather in Chaozhou to hold the third meeting, and the topic will focus on "production reduction, production limitation, quoted price". Tungsten market has high degree concern on this meeting, because after the first two meeting, market confidence has been greatly boosted and the meeting can well reflect the market price. The effect of this meeting is still worth to wait, but in the off-season June, July and August, the probability of prices rise sharply is small, but the probability of price maintain in the cost line is large.

The price of tungsten at the end of May price increase came to an end, and has started to slight decline. The main reason is tungsten concentrate and other raw materials price has declined lacking of motivation, so it drops tungsten alloy prices to decline. Beside, the steel market price is declining sharply and the demand is shrinking, resulting in tungsten-based product price slight fell down. In addition, the upcoming meeting of tungsten enterprises, the market is now relatively calm. Manufacturers are waiting for the meeting results for their further action. It is expected that tungsten raw material and tungsten finished product prices will temporarily shrink in the future. There are many China leading tungsten enterprises scheduled on June 7 gathered in Chaozhou, Guangdong, to discuss the company’s production status and current and future situation of tungsten market, and the leading companies including Minmetals, Jiangxi Tungsten Industry Group, Xiamen Tungtsen and so on.