智通财经网·2026-01-29 06:11Core Viewpoint - The report from China Merchants Securities indicates that since 2025, tungsten concentrate prices have been rising, leading to cost pressures and potential production cuts for small and medium-sized companies, while leading domestic firms benefit from price adjustments and inventory advantages, suggesting a shift in demand towards these stronger players in the market [1][2][3]. Industry Overview - The cutting tool industry is experiencing stable growth in demand due to the development of the manufacturing sector, with global sales expected to reach $28.65 billion in 2024 and $33.85 billion by 2027. In China, the market size of the cutting tool industry has grown from 39.3 billion yuan in 2019 to 53.8 billion yuan in 2023 [1]. Impact of Rising Tungsten Prices - The continuous rise in tungsten prices has created a significant disparity in the impact on tool companies, with leading firms leveraging their financial strength to stockpile raw materials, thus benefiting from a time lag in price increases. This has allowed them to maintain a cost advantage and expand profit margins as they raise product prices [2][3]. Market Dynamics and Shifts - The current cycle of rising tungsten prices is likely to increase the market share of leading domestic cutting tool companies, as many smaller firms struggle with financial constraints and lack of bargaining power. This situation may lead to a market reshuffle, with larger firms capturing the market share of smaller competitors who can no longer rely on low-price strategies [3]. Resource Control and Supply Chain Implications - China controls over 80% of the global tungsten supply and has implemented strategic measures to tighten supply through mining quotas and export licenses since 2025. This has created supply uncertainties for small domestic firms and Japanese and Korean companies, potentially leading to supply shortages and allowing domestic firms to capitalize on import substitution opportunities [3]. Recommended Companies - Key domestic companies such as Huari Precision (688059.SH), Oke Yi (688308.SH), and Zhongtung High-tech (000657.SZ) are expected to benefit from the ongoing rise in tungsten prices and should be closely monitored [4].