Changes and challenges facing the domestic tungsten market

2015 was successfully concluded last week, two of the country to an end, the deepening of reform, environmental protection, anti-corruption and other current hot topics become the focus of two sessions. During the two sessions of various types of motion have been proposed, frequent hot topic, a series of policy items ready. In addition, on behalf of the members concerned about the important mineral resources is also reflected during the two sessions. Behalf of the members said that as tungsten, antimony, tin, rare earth and other strategic resources, China has completed the first phase of prospecting breakthrough strategic action goals is to start the implementation of the second phase of the strategic actions in the market, more based on international and domestic two markets; as hot, heavy metal contamination of soil and other environmental issues and environmental protection will also be the topic of the consolidation trend. 2015 is a crucial year for comprehensive deepening reform, is to promote the rule of law in the first year, is critical of the steady growth in structural adjustment. Under the new normal, domestic tungsten market will face what kind of market changes and challenges?

Before the exchange and tungsten market participants, we often hear some, such as the difference between the market price, low-margin, almost not make any money this rhetoric, feel tungsten market downturn from the side. According to Ganzhou Tungsten Industry Association, statistics show: 2014 26 tungsten sample enterprises to realize an annual main business income 8.589 billion yuan, down 18.35 percent; tax 531 million yuan, down 26.24%; profit -0.52 billion yuan, down 108.48%, 26 companies accounted for 15 loss-making enterprises, the loss 57.69%, of which six mining business losses, loss of 216 million yuan, the state-owned mining enterprises for Ganzhou first loss in nearly a decade; APT smelters 4, loss of 73.257 million yuan, an increase of 34.0246 million yuan losses; tungsten powder manufacturer 2, a loss of 16.2274 million yuan, an increase of 6.3574 million yuan losses; the whole industry chain enterprises a loss of $ 49.08 million yuan , an increase of 15.31 million yuan losses; trade enterprises 2, the loss amounted to 21.94 million yuan, an increase of 15.7 million yuan losses. These data allow us learned from the front lines of the tungsten market slump degree of market participants to better understand the feelings of frustration.

Currently, the domestic tungsten market is facing a serious imbalance between supply and demand, market supply capacity greatly exceeds demand. Faced with this situation, the optimization and upgrading of industrial structure of the market will inevitably put forward higher requirements, some of the low level of productivity is bound to be eliminated, corporate mergers and acquisitions, the relative concentration of the production trend is inevitable. Tungsten industry is a relatively special industry, the State Council protective tungsten ore mining specific minerals, but also one of very few minerals mining quotas. Ministry of Land and tungsten ore has been mined on the total amount of other important mineral resources, regulate, although there are still stealing phenomenon, but the exploitation of normative are constantly being improved. In addition, the Ministry of Finance to establish regular communication with matters relating to mineral reserves.

Although the market is far can not be compared with the 11 years that would be high-priced, but the market is not lifeless. Along the way and railways, nuclear power, building materials, equipment, production lines, and Chinese "sea" major strategy were launched, will drive the recovery in domestic manufacturing, railway investment this year will continue the trend of triumph; feast open local investment in key projects, total investment of more than 14 provinces 15 trillion, focusing on infrastructure, environmental protection and livelihood of the three themes. These will enhance the domestic market demand tungsten, stimulate market prices. At the same time, companies need to release tungsten consumption potential through innovative supply, and even lead the consumer. If you continue to blindly do the homogenization of competition; that price, yield fight; not pay attention to the product quality, in terms of product differentiation, in scientific research, market development in the new investment, it will continue to survive in a tough market or even be eliminated.

In 2014 the US economy continues to slow recovery, GDP growth of 2.4, 0.2 percentage point increase over the previous year; euro area increased from 0.4 in 2013 to a negative 0.9 in 2014; Japan has experienced the second and third quarters of two consecutive quarters of economic After shrinking in the fourth quarter to reach 2.2. A series of data showed some good foreign situation, Europe and Japan's economic recovery quietly, May 2 tungsten products export tariffs will be canceled, the market is expected to overseas buyers demand for tungsten products will increase.

In the ever-changing market, the difficulty is an objective reality, but hope is there. Tungsten companies should maintain a sense of balance, the ideal view of the market changes, rationally adjust the production structure, optimization and upgrading product quality. Although tungsten overall market is still low, but after the storms, post-market will bloom more sunshine.


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