With the finish of hot American TV Series <Game of Thrones> Season 6, ‘the winter is really coming’ after all these 6 seasons. All of us have an expectation for who will finally reign the seven kingdoms and let’s wait and see what will happen in Season 7 in 2017.

Coincidentally, tungsten market has entered the traditional slack season in July and August with the break of European & American countries. That’s why we say that ‘winter is coming’.

National tungsten market has been settled in an awkard situation for a long time. Not only for the decreased demand, but also the uncertainty sentiment of market participants. The summer break of European and American countries will absolutely have negative influence on the tungsten market. However, price of tungsten shall never fall to such a low level. After all, the value of tungsten is far from this. In October, 2015, national tungsten products price slacked to the bottom since 2004. All the special factors brew and cause the result. People would reckon that will tungsten price falls again to the bottom of last year?

Since May, 2016, price of APT falls down for 30 thousand RMB/ton since it increases about 130 thousand RMB/ton, which has been just a month. It that were not enough, tungsten slack season is coming which results in delay of recovery. Price of APT has been below 100 thousand RMB/ton, will it be below 90 thousand/ton? Since the winter is already coming, we should focus on how to stay warm and struggle through this period instead of talking about the temperature.

Tungsten powder purchase amount has shown the backdrop, as well as tungsten carbide products. Although the market is depressed, the falling and increasing of price has its own sequence. All of us should have a rational reflection on this serious situation. The falling of price is not necessarily a good thing, it would be best chance for regular customers to purchase some stock. There may be downtick anytime due to special reasons of funds, stock, product and customer. Manufacturer should have the theory of always keep the quality of products. Customer service and comprehensive strength are the key points in such depressed market.

Let’s keep enthusiastic attitude to stay optimistic for the ‘winter’ of tungsten market in such hot hot summer.

The current domestic tungsten market is in a very embarrassing situation. It not only because “less demand”, but also due to the “unsafe” hearts of market participants. 

Summer adjournment of Europe and other countries in July and August would cause some negative impact on the market. However, the main reason of the low price of tungsten products (tungsten heater) is not for it. Domestic tungsten prices would not fall so low, after all, value of tungsten products is so much more. The end of October 2015, the domestic tungsten products has been reduced to the limit since 2004. For example, APT, since the highest price point in May, decreasing amplitude of APT price is nearly 30,000 RMB / ton, which within just over a month. Off-season of tungsten market is coming, so opportunity for turning around of the market will be delayed. At present APT prices have fallen below 100,000 RMB / ton. 

If there is no intervention and bailout of policy, the market in July and August will continue to be in a bleak. 

Enterprises must be prepared for the winter. The safest methods are to lock orders and to lock the materials, if there is no order, it is better to for the time for the market. What’s more, tungsten enterprises can give proper care for old customers of the price, of course, there is no need to make allowance without any principle, or it would make both enterprises and the entire industry be in the illusion for quoting the fake price. People should hold the rational view for the low price rumors of the market. When prices do fall too fast, people should make a choice: to abandon or to do a longer stockpile preparation. Operation of manufacturers also need to integrate into the concept of “fast, and spirit, accurate,” trade-oriented enterprises, product quality is the most important in any time.

It is reported that in accordance with relevant state laws and regulations, industry policies and standards, the Ministry of Industry and Information Technology of the People’s Republic of China has issued “Rare Earth Industry Norm Conditions (2016 version)” and “Rare Earth Industry Norm Conditions Bulletin Management Approach” in order to protect China's rare earth resources and the ecological environment  and regulate tungsten market (tungsten heater) management promoting adjustment of industrial structure and transformation of economic and promoting the healthy and stable development of tungsten market (tungsten heater).

There are a series of new regulations for the supervision and management in Chapter III.

Article IX indicates that rare earth enterprises who want to apply standardized conditions announcements should truthfully fill in any application materials. List of rare earth enterprises which enter the announcement should strictly follow the requirements of production and business activities of "standard".
Announcement enterprises should establish production and management accounting, accept supervision and inspection of the Ministry of Industry and Information Technology of the People’s Republic of China, local people's governments at all levels and the rare earth industry department.
Article X: Provincical (autonomous regions and municipalities) People's Government and the rare earth industry department would work with relevant departments to supervise and test for the "standard conditions" of announcement enterprises, report the result of the supervision and inspection to the Ministry of Industry and Information Technology of the People’s Republic of China timely.
Article XI: welcome and encourage social supervision. Any unit or individual can make a complaint or report to the competent department of the rare earth industry if found the related rare earth enterprises do not meet the relevant requirements of "standard conditions".

The new "standard conditions" have carried out detailed provisions for various aspects of the establishment and layout, production scale, resource utilization and other rare earth projects.

In late June, Chinese announced the "National Catalogue of Hazardous Wastes" 2016 edition. The catalogue noted the tungsten slag which produced for ammonium paratungstate alkaline decomposition process and molybdenum slag which produced form molybdenum removal process and waste water are included in the non-ferrous metal smelting waste, belong to toxic smelting waste. But other tungsten products smelting slag has not yet been included in the catalogue.

In June 29, 2016, Ganzhou Tungsten Industry Association held a meeting with APT smelting enterprises directors. This meeting fully analyzed the impact of this environmental policy on APT smelting enterprises and discussed the appropriate response options. This environmental policy will begin on August 1 and for APT smelting enterprises still have one month grace period. The relevant manufacturers can find a way to solve the difficulties and problems. It is said environmental policy will not great influence on the smelting factory, mainly because tungsten market is now at a low season, having low operating rates, so the prices continued to slight decline and tungsten raw material and tungsten finished manufacturers enthusiasm is not high.

Brexit resulting pound continues to fall, the euro against the dollar also fell more than three percent, while the swiss franc and the Japanese yen has been skyrocketing. Brexit direct affects the global currency market. In order to stabilize the economy, many countries have begun to currency intervention. Europe As a cross-border export electricity supplier important market, is now in the economy shocks and the pound and the euro will likely continued to depreciate, which to some extent, in favor of tungsten market import, such as imports of tungsten related equipment. But in this economic situation will reduce the profits of business, which is not conducive to exports. The official pointed out, the current China logistics companies which employ cross-border e-commence in EU usually through the UK into the EU, therefore the British leaved form Europe have a certain impact on China-EU cross-border logistics service providers. Brexit will make the global economy in long grace period, so countries should make corresponding measures to stabilize their economies.