Tungsten Industry Towards Positive and Steady Direction(1)

In 2017, the production of tungsten concentrates is stable, the output of smelting and processing products increase, export trade continues to grow, market demand is gradually recovering, the contradiction between supply and demand continues to improve, the market price rises, economic benefits obviously improve, and the industry continues to be stable and steady.

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The 1-3 quarter of 2017: 86 of the 119 enterprises accounted for 72.27%, while 33 of them accounted for 27.73%. Among them: 33 mining enterprises, 16 profits, 17 losses, 51.52% loss, 28 smelting enterprises, 22 profits, 6 losses, loss surface 21.43%, 46 carbide enterprises, 39 profits, 7 losses, loss surface 15.22%, 10 tungsten enterprises, 8 of them get profit, 2 of them deficit, loss surface 20%.

The overall price of the tungsten concentrate market in the first three quarters has not yet recovered to the reasonable level of tungsten mining. It is still lower than the average cost line of the national tungsten mining, the production and operation still face many difficulties. In particular, the losses of the tungsten mining enterprises are still serious, the economic benefits of the industry have not been fundamentally improved. The task of the structural reform of the supply side, the foundation for a good development needs to be further consolidated.

The value of tungsten resources determines the price of tungsten products,  market supply and demand is the most fundamental factor affecting price fluctuations. China's tungsten industry policy, supply and demand in tungsten market are still the key factors affecting the global tungsten market.
The strategic reserve of the military power. The United States: 10 thousand tons, at a historic low point. Russia: Tungsten strategic inventory is very low, in 2016 put in 400 tons in the domestic market consumption (tungsten concentrate, tungsten and bar, no storage in 2017), at present only a small amount of tungsten iron. At the same time, because of the ruble's depreciation, tungsten products have price competitive advantages, but because of their low output, they have limited market impact.

According to the tungsten Association statistics, China's exports to the United States, Japan, South Korea and Europe in the first three quarters increased by 122.98%, 27.97%, and 25.883.07% respectively. Although the growth rate of export tungsten products slowed down in the three quarter, it was still at a high level. In the 1-3 quarter, China exported tungsten products from the high level since 2008, more than 2016.
It can be foreseen that with the continuous implementation of the "one area and one road" initiative, the industrial and industrial upgrading of the developed economies, the accelerated industrialization and urbanization of the emerging economies, and the promotion of the interconnected infrastructure in the world will continue to increase the steady growth of the international tungsten demand.

To sum up, the global economy is entering a comprehensive recovery, the economy of our country is steady, the demand of tungsten market keeps growing, the tight structure of tungsten raw materials has not changed, the stability of tungsten market is strengthened, and the future price of tungsten market will continue to oscillate up and tend to run reasonably.

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