Core Viewpoint - The stock price of Jaxin International Resources (03858) has increased by over 9%, currently trading at 32.8 HKD, driven by rising tungsten prices and strong performance expectations from its core asset, the Bakuta tungsten mine [1] Company Summary - Jaxin International Resources focuses on tungsten resource development in Kazakhstan, with the Bakuta tungsten mine being its core asset [1] - As of the first half of this year, the Bakuta tungsten mine has a resource volume of 107.5 million tons of tungsten ore, with a grade of 0.211%, containing 22.7 thousand tons of WO₃ [1] - The mine's reserves are reported at 68.4 million tons of tungsten ore, with a grade of 0.206%, containing 14.08 thousand tons of WO₃ [1] Industry Summary - Tungsten prices have significantly increased, with major tungsten product prices doubling compared to the average price in 2024 [1] - As of September 3, the price of 65% black tungsten concentrate reached 278,000 CNY per standard ton, reflecting a 94.4% increase since the beginning of the year [1] - The rising tungsten prices are expected to lead to substantial profit growth for companies like Jaxin International Resources, which are positioned to benefit from this upward trend [1]

Summary of Tungsten Market Conference Call Industry Overview - The tungsten market is experiencing significant price increases due to various macroeconomic factors and supply-demand dynamics. [1][3][21] Key Points and Arguments Market Dynamics - **Price Trends**: Tungsten prices have surged to historical highs, with APT (Ammonium Paratungstate) prices expected to reach around 260,000 CNY per ton. [2][21] - **Supply and Demand**: The demand for tungsten is rising, particularly in high-tech applications such as missiles and solar energy. [3][4] - **Production Levels**: Tungsten ore production in the first half of the year remained stable compared to the previous year, with a slight decline in Jiangxi province. [9][10] Economic Influences - **US-China Trade Relations**: The recent extension of the tariff ceasefire indicates that export controls will remain in place, affecting price differentials between domestic and international markets. [5][6] - **Monetary Policy Effects**: The depreciation of the US dollar and the resulting capital outflow have influenced commodity prices, including tungsten. [3][5] Government Policies - **Domestic Economic Policies**: The Chinese government is implementing anti-involution policies to stimulate domestic demand, indirectly supporting tungsten prices. [4][7] - **Financial Measures**: Central bank initiatives to support consumer spending are expected to increase demand for industrial materials, including tungsten. [7] Production Challenges - **Environmental Regulations**: Increased environmental pressures have led to reduced production in key APT regions, impacting overall supply. [11][12] - **Raw Material Sourcing**: Companies are facing difficulties in securing raw materials, leading to increased production costs. [12][13] Market Risks - **Inventory Concerns**: Rapid price increases may lead to inventory accumulation across industries, posing risks to economic stability and employment. [8] - **Price Volatility**: The market is expected to undergo inventory digestion at high price levels, which could lead to fluctuations. [8][19] Future Outlook - **Supply Projections**: New tungsten mining projects are expected to have limited impact on supply until 2027, with domestic production anticipated to decline slightly. [26][31] - **Recycling and Recovery**: China's tungsten recycling rate is low compared to international standards, but there is potential for growth in this sector. [35][36] Strategic Resource Management - **Resource Control**: China is likely to enhance its management of strategic resources like tungsten and rare earths in the context of US-China relations. [6][5] Additional Important Insights - **Market Sentiment**: The psychological index indicates potential market rebounds when certain thresholds are crossed, providing insights into trading strategies. [15] - **Historical Context**: The tungsten market has experienced significant fluctuations over the past two decades, with current trends suggesting a potential for substantial price increases. [20][21] This summary encapsulates the key discussions and insights from the tungsten market conference call, highlighting the interplay of economic factors, government policies, and market dynamics that are shaping the future of the tungsten industry.

Core 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].

Core Viewpoint - The A-share market for tungsten stocks is experiencing a strong performance, with significant price increases in tungsten products and notable stock price gains for companies in the sector [1] Group 1: Market Performance - Zhangyuan Tungsten Industry has reached a daily limit increase of 10%, while China Rare Earth and Xianglu Tungsten Industry have risen over 4%, and Xiamen Tungsten Industry has increased by over 2% [1] - The total market capitalization of Zhangyuan Tungsten Industry is 13.9 billion, with a year-to-date increase of 80.03% [2] - China Rare Earth has a market capitalization of 50.9 billion, with a year-to-date increase of 71.12% [2] - Xianglu Tungsten Industry has a market capitalization of 3.615 billion, with a year-to-date increase of 77.94% [2] - Xiamen Tungsten Industry has a market capitalization of 43.3 billion, with a year-to-date increase of 44.32% [2] Group 2: Price Adjustments - Zhangyuan Tungsten Industry and Jiangxi Tungsten Industry have announced the guidance prices for tungsten products for the second half of August [1] - The guidance price for Jiangxi Tungsten Group's national standard first-class black tungsten concentrate is set at 213,000 yuan per standard ton, an increase of 19,000 yuan per standard ton, representing a rise of 9.79% [1] - The monthly increase in the price of black tungsten concentrate is 17.03% [1] Group 3: Price Trends - Recent industry data indicates that tungsten prices have surged by 5,000 to 10,000 yuan per ton [1] - The price of 65% black tungsten concentrate is 216,000 yuan per standard ton, up 51.1% since the beginning of the year [1] - The price of 65% white tungsten concentrate is 215,000 yuan per standard ton, reflecting a 51.4% increase since the beginning of the year [1] - The price of ammonium paratungstate (APT) is 320,000 yuan per ton, which is a 51.7% increase since the beginning of the year [1]

Group 1: Tungsten Price Trends - Tungsten prices have been on the rise throughout the year, with significant increases noted in recent weeks. As of August 20, the price of 65% tungsten concentrate reached 217,000 yuan/ton, up 3,000 yuan/ton from August 19, marking a 51.75% increase since the beginning of the year [5][8] - The price of ammonium paratungstate (APT) at 88.5% purity is reported at 311,500 yuan/ton, reflecting a 47.98% increase year-to-date, while tungsten powder is priced at 482.5 yuan/kg, up 53.91% since the start of the year [5][8] Group 2: Supply and Demand Dynamics - The surge in tungsten prices is attributed to tightening supply and emerging demand. The Ministry of Natural Resources has set a control target for tungsten mining at 58,000 tons for 2025, a reduction of 4,000 tons or 6.45% from the previous year [8] - Major tungsten-producing regions, such as Jiangxi and Yunnan, have also seen reductions in mining output, contributing to a significant decrease in market circulation [8] - Demand for tungsten is growing in various sectors, including aerospace, defense, and electronics, with notable increases in the renewable energy sector, particularly in photovoltaic applications [8] Group 3: Market Performance and Stock Analysis - Tungsten-related stocks in the A-share market have generally performed well, with an average increase of 10.1% since August. Leading stocks include Luoyang Molybdenum, Zhongtung High-tech, and Xianglu Tungsten, with respective gains of 22.48%, 18.99%, and 17.41% [10][14] - The valuation of some tungsten concept stocks remains low, with a median rolling P/E ratio of 30.24 times, and several stocks, including Shengtun Mining and Luoyang Molybdenum, having P/E ratios below 20 times [11][12] - Luoyang Molybdenum is expected to report a net profit of 8.2 to 9.1 billion yuan for the first half of the year, representing a year-on-year growth of 51.37% to 67.98% [12]

Core Viewpoint - The price of tungsten products has been continuously rising this year, driven by supply constraints and increasing demand from various industries, particularly in the renewable energy sector [1][3][4]. Price Trends - Tungsten concentrate prices have surged, with a recent increase of 3,000 to 10,000 yuan per ton. As of August 20, the price for 65% tungsten concentrate was 217,000 yuan per ton, up 51.75% since the beginning of the year [1]. - The price for ammonium paratungstate (APT) reached 311,500 yuan per ton, reflecting a 47.98% increase year-to-date, while tungsten powder prices rose to 482.5 yuan per kilogram, up 53.91% [1]. Supply and Demand Dynamics - Supply has tightened due to a reduction in mining quotas set by the Ministry of Natural Resources, with a 6.45% decrease in the first batch of tungsten mining quotas for 2025 compared to 2024 [3]. - Major tungsten-producing regions, such as Jiangxi and Yunnan, have also seen significant reductions in mining output, leading to a sharp decrease in market circulation [3]. - Demand for tungsten is growing, particularly in hard alloy applications across various sectors, including aerospace, defense, and electronics. The demand for tungsten in the renewable energy sector is expected to exceed 4,500 tons by 2025 [3]. Market Outlook - Short-term prospects for tungsten prices are positive, driven by restocking needs and export recovery. However, long-term supply constraints may lead to a sustained increase in tungsten prices [4]. - The profit distribution within the tungsten industry is characterized by a "smile curve," where companies at both ends of the value chain are likely to benefit from rising tungsten prices [4]. Stock Performance - Tungsten-related stocks in the A-share market have generally risen, with an average increase of 10.1% since August. Notable performers include Luoyang Molybdenum, Zhongtung High-tech, and Xianglu Tungsten, with cumulative increases of 22.48%, 18.99%, and 17.41%, respectively [5][9]. - Some tungsten stocks are currently undervalued, with a median rolling P/E ratio of 30.24 times, and companies like Shengtun Mining and Luoyang Molybdenum have P/E ratios below 20 times [6]. Company Performance - Shengtun Mining has the lowest valuation with a rolling P/E ratio of 12.41 times and holds 32,200 tons of tungsten metal in its own mines [7]. - Among the companies that have reported earnings, a significant proportion (75%) showed positive growth, with Luoyang Molybdenum expected to report a net profit of 8.2 to 9.1 billion yuan for the first half of the year, marking a year-on-year increase of 51.37% to 67.98% [7].

Group 1: Tungsten Price Trends - Tungsten prices have been on the rise this year, with significant increases in the past week, showing daily price hikes of 3,000 to 10,000 yuan per ton [5] - As of August 20, the price of 65% tungsten concentrate reached 217,000 yuan per ton, up 3,000 yuan from August 19, marking a 51.75% increase since the beginning of the year [5] - The price of ammonium paratungstate (APT) at 88.5% purity is reported at 311,500 yuan per ton, reflecting a 47.98% increase year-to-date [5] Group 2: Supply and Demand Dynamics - The recent price surge is attributed to tightening supply and emerging demand, with the Ministry of Natural Resources reducing the tungsten mining quota for 2025 by 4,000 tons, a decrease of 6.45% [7] - Major tungsten-producing provinces, Jiangxi and Yunnan, have also seen reductions in mining output, contributing to a significant decrease in market circulation [7] - Demand for tungsten in hard alloys is growing due to its superior properties, with applications in various industries including aerospace and electronics [7] Group 3: Market Performance and Stock Analysis - Tungsten-related stocks in the A-share market have generally risen, with an average increase of 10.1% since August [9] - Notable performers include Luoyang Molybdenum (603993) and Zhongtung High-tech (000657), with cumulative increases of 22.48% and 18.99%, respectively [9] - Some tungsten concept stocks are currently undervalued, with a median rolling P/E ratio of 30.24, and companies like Shengtun Mining (600711) having a P/E ratio below 20 [10] Group 4: Company Performance - Shengtun Mining has the lowest valuation with a rolling P/E ratio of 12.41, holding 32,200 tons of tungsten metal in its own mine [11] - Among the eight companies that have disclosed performance data, three have turned losses into profits, while others like Luoyang Molybdenum and Xianglu Tungsten Industry have reported significant year-on-year profit growth [11] - Luoyang Molybdenum is expected to achieve a net profit of 8.2 to 9.1 billion yuan in the first half of the year, representing a year-on-year increase of 51.37% to 67.98% [11]

Core Viewpoint - The tungsten market is experiencing significant price increases due to tightening supply and rising demand, with major tungsten companies adjusting their prices accordingly [5][6][7]. Price Trends - Tungsten concentrate prices have surged, with a recent increase of 3,000 to 10,000 yuan per ton, reaching 217,000 yuan per ton as of August 20, marking a 51.75% increase since the beginning of the year [5][6]. - Ammonium paratungstate (APT) prices are reported at 311,500 yuan per ton, up 47.98% year-to-date, while tungsten powder prices have risen to 482.5 yuan per kilogram, reflecting a 53.91% increase [6]. Supply Dynamics - The Ministry of Natural Resources has set a control target for tungsten mining at 58,000 tons for 2025, a reduction of 4,000 tons (6.45%) compared to the previous year [6]. - Major tungsten-producing provinces, Jiangxi and Yunnan, have also seen reductions in mining volumes, contributing to a significant decrease in market circulation [6]. Demand Drivers - The demand for tungsten hard alloys is growing due to their superior properties, with applications in various industries including aerospace, defense, and electronics [7]. - The demand for tungsten in the renewable energy sector is expected to rise, with projections indicating a 22% year-on-year increase in consumption for lithium battery applications by 2025 [7]. Stock Performance - Tungsten-related stocks have generally risen, with an average increase of 10.1% since August, led by companies such as Luoyang Molybdenum and Zhongtung High-tech, which saw increases of 22.48% and 18.99%, respectively [8]. - The median rolling price-to-earnings ratio for tungsten stocks is 30.24, with some companies like Shengtun Mining and Luoyang Molybdenum having ratios below 20 [8]. Company Performance - Among the eight companies that have reported their half-year results, three-quarters have shown positive growth, with Xianglu Tungsten and Guangsheng Nonferrous turning losses into profits [8]. - Luoyang Molybdenum is expected to report a net profit of 8.2 to 9.1 billion yuan for the first half of the year, reflecting a year-on-year growth of 51.37% to 67.98% [8].

Group 1 - The core viewpoint of the articles indicates a significant increase in tungsten prices, with various companies adjusting their product prices upwards in mid-August [1][4] - Jiangxi Tungsten Holdings Group has set the guiding price for standard grade black tungsten concentrate at 213,000 yuan per standard ton, an increase of 19,000 yuan per standard ton, representing a rise of 9.79% from the previous half month, and a monthly increase of 17.03% [1] - Changyuan Tungsten Industry has also raised its prices for 55% black tungsten concentrate and 55% white tungsten concentrate to 211,000 yuan per standard ton, both up by 18,500 yuan per standard ton, while ammonium paratungstate (APT) is now priced at 310,000 yuan per ton, up by 27,000 yuan per ton [1] Group 2 - Industry data shows that tungsten prices have surged by 5,000 to 10,000 yuan per ton recently, with the price of 65% black tungsten concentrate reaching 216,000 yuan per standard ton, a 51.1% increase since the beginning of the year [4] - The price of 65% white tungsten concentrate is at 215,000 yuan per standard ton, reflecting a 51.4% increase year-to-date, while APT is priced at 320,000 yuan per ton, up 51.7% since the start of the year [4] - Market analysts attribute the current rise in tungsten prices to a combination of supply contraction, increased demand, supportive policies, and market sentiment, while cautioning against speculative behavior [4]

Group 1 - Recent price increases in various chemical and industrial products have raised market concerns about the drivers behind this surge, its sustainability, and the potential for performance recovery among upstream and downstream companies in the industry [1][3] - Tungsten prices have reached a milestone, with APT (Ammonium Paratungstate) quoted at 300,000 yuan/ton, and both black and white tungsten concentrates (≥65%) surpassing 200,000 yuan/ton, marking a 45% increase compared to the year's low and exceeding the peak levels of 2011 [1][3] - The price surge began in late April, with black tungsten concentrate prices breaking through 180,000 yuan/ton by mid-July, and leading companies like Zhangyuan Tungsten and Xiamen Tungsten seeing significant price increases in their long-term contracts [3][4] Group 2 - Upstream mining companies are the biggest winners from the price surge, with Zhangyuan Tungsten reporting a 32.65% year-on-year increase in revenue to 2.406 billion yuan and a 2.54% increase in net profit to 115 million yuan for the first half of 2025 [4] - Xiamen Tungsten's revenue for the same period reached 931 million yuan, a 3.24% increase, with a net profit of 18.38 million yuan, marking a return to profitability [4] - Downstream hard alloy companies are facing pressure from rising raw material costs, leading them to increase prices for their products in response to the cost pressures [4][6] Group 3 - Analysts predict that the tungsten market may face a supply-demand adjustment due to tightening supply and softening demand from downstream enterprises, which are exhibiting a cautious attitude towards high prices [6][7] - The market may enter a period of adjustment if demand continues to shrink, necessitating close monitoring of annual production indicators and the progress of new mining releases [7]