3 6 Ke·2025-08-28 07:13Core Viewpoint - The tungsten market is experiencing significant price increases, driven by supply constraints and surging demand from military and renewable energy sectors [1][4]. Group 1: Market Dynamics - As of August 27, 2023, ammonium paratungstate (APT) prices reached 360,000 CNY per ton, up 10,000 CNY from the previous day, marking a 70.62% increase since the beginning of the year [1]. - Black tungsten concentrate (≥65%) and white tungsten concentrate (≥65%) prices both rose by 8,000 CNY per ton to 241,000 CNY and 240,000 CNY per ton, respectively, reflecting over a 68% increase year-to-date [1]. - The tungsten sector index hit a historical high of 1,904.20 points, with a year-to-date increase exceeding 80% [2]. Group 2: Company Performance - Xiamen Tungsten reported a revenue of 19.178 billion CNY for the first half of 2023, a year-on-year increase of 11.75%, while Xianglu Tungsten had the lowest revenue at 931 million CNY [3]. - Zhangyuan Tungsten emerged as a "dark horse" with a revenue growth of 32.27% to 2.399 billion CNY [3]. - Xiamen Tungsten's net profit increased by 7.53% to 923 million CNY, while Zhongtung High-tech saw a substantial profit increase of 310.54% to 484 million CNY [4]. Group 3: Supply and Demand Factors - Supply constraints are attributed to reduced mining quotas in China, environmental inspections leading to lower operational rates, and declining ore grades globally [4]. - Demand is driven by increased military orders, rising penetration of tungsten in photovoltaic applications, and new requirements from nuclear fusion devices [4]. - Speculative trading and stockpiling by traders have also contributed to the price surge, alongside geopolitical tensions enhancing the strategic resource premium [4]. Group 4: Profitability and Challenges - Not all tungsten companies are benefiting equally; companies with higher self-sufficiency in raw materials are likely to see greater profits [4]. - Zhangyuan Tungsten's net profit decreased by 4.36% to 107 million CNY, attributed to rising raw material costs and a lag in price transmission for their powder products [6]. - The company reported a gross margin of 14.14%, down 3.17 percentage points year-on-year, indicating challenges in maintaining profitability amid rising costs [6]. Group 5: Future Outlook - Analysts suggest monitoring domestic mining quotas, overseas new mine production schedules, and demand data from military and photovoltaic sectors for potential market shifts [7]. - The tungsten price is expected to remain high in the short term, with long-term projections indicating a potential upward trend due to resource depletion and expanding demand [6][7].