Summary of Tungsten Industry Conference Call Industry Overview - **Tungsten Demand**: Global tungsten demand is robust, with hard alloys being the primary consumption area, accounting for 65% of total demand. Emerging industries such as electric vehicles, aerospace, and military applications are driving growth in tungsten demand [2][3][4]. - **China's Tungsten Resources**: China holds 51% of global tungsten reserves and produces 80% of the world's tungsten. The industry is highly concentrated, with Jiangxi, Hunan, and Henan provinces holding 80% of China's reserves, which is 40% of global reserves [2][5]. - **Price Dynamics**: Tungsten prices have risen due to multiple factors, including environmental regulations, export controls, and structural constraints. In 2025, tungsten prices reached their highest level since 2011, with a cumulative increase of 21.8% [2][9]. Key Insights - **Strategic Importance**: Tungsten is considered a strategic resource, essential for industrial manufacturing, often referred to as the "industrial tooth." The supply-demand dynamics are tightening, leading to higher prices in the context of de-globalization [3][6]. - **Supply Constraints**: The growth rate of tungsten supply is limited, with China's production growth slowing down and overseas increments being insufficient to offset the reduction in Chinese output. By 2025, overseas supply is expected to increase slightly, but long-term production levels may stabilize around 2013 levels [4][15]. - **Export Control Impact**: China's tightening of supply indicators and export controls has led to a split in domestic and international price systems. Despite overall declines in tungsten product exports, the export of high-value downstream products like tools and blades has continued to grow [8][22]. Market Changes - **Global Supply Chain Reconfiguration**: Countries are increasingly focusing on the security of the tungsten supply chain. The U.S. and Europe are restructuring their supply chains and supporting overseas tungsten mining projects while planning to build higher strategic inventories [2][10]. - **Investment Recommendations**: Investors are encouraged to understand the fundamentals of tungsten and consider stock allocations in related companies, as the current price increases and favorable market conditions may lead to significant benefits for listed companies [7][28]. Financial Performance - **Listed Companies' Growth**: Major Chinese tungsten companies have shown significant revenue growth from 18.75 billion yuan in 2019 to 37.25 billion yuan in 2024, with a compound annual growth rate (CAGR) of 14.7% [25]. - **Cash Flow Analysis**: Leading companies reported stable operating cash flows, with significant improvements in financing activities, indicating a strong financial position to capitalize on market opportunities [26]. Future Outlook - **Demand Projections**: The demand for tungsten is expected to grow due to the rise of new industries and increased military spending globally. The compound annual growth rate for tungsten consumption is projected to be 2.61% from 2025 to 2038 [19][24]. - **Price Trends**: Tungsten prices are anticipated to remain high in the short term, driven by tightening supply and increasing demand for high-end equipment. The market is expected to enter a prolonged bullish phase [29]. Conclusion - The tungsten industry is poised for significant growth driven by strategic demand from various sectors, supply constraints, and favorable pricing dynamics. Companies in this sector are well-positioned to benefit from these trends, making tungsten a critical area for investment consideration.

然而，尽管锑在现代生活中无处不在，它的稀缺性依然显而易见。锑在地壳中的含量极低，仅为百万分之一，这使得各国对锑资源的争夺愈发激烈。锑是支 撑国家强盛的重要资源之一，许多国家纷纷加大对锑资源的掌控力度。中国，作为全球锑储量最大的国家，无疑在锑资源的开发与利用中扮演了举足轻重的 角色。 根据美国地质调查局2020年的数据显示，2019年全球锑的探明储量约为150万吨，其中近48万吨位于中国，占全球储量的32%。这一数据无疑彰显了中国在 全球锑资源中的优势地位。早在明朝末期，湖南的锑矿就被发现，但因当时技术水平有限，锑一度被误认为是锡矿。直到清朝，锑的真正价值才被认定，并 进入了冶炼行业。 锑，这一常被忽视的金属，比稀土还要罕见，甚至在全球的金属资源中也占据着极为特殊的位置。虽然稀土元素已为人熟知，但锑的稀缺性往往被忽略。 2014年，中国出台了有关锑资源的禁令。然而，没过多久，美国却对中国发出了强烈的反应，要求中方撤回这一决定，称其不利于全球局势。 那么，锑到底是什么样的金属？为什么它在全球范围内引发了如此大的争议？它在中国的发展，又将如何演变？ 锑的历史可以追溯到数千年前。从最早的"毒药"到如今被当作珍贵资源， ...

Investment Rating - The industry investment rating is "Strong Outperform" [1] Core Viewpoints - Tungsten is a significant strategic resource, widely used in various industries, and its price has risen to 161,000 yuan/ton, the highest since 2013, due to supply tightening and supportive policies [2][19] - The global tungsten resource distribution is concentrated, with China holding 55% of reserves and 83% of production, and no new mines expected to come online in the next two years [2][29] - Demand for tungsten is expected to improve significantly due to large-scale equipment updates and supportive policies, particularly in the machinery and aerospace sectors [2][54] - Export controls implemented by China in February 2025 have strengthened the strategic nature of tungsten resources, with a projected global supply-demand gap of 5,433 tons by 2027 [2][19] Supply Summary - Domestic supply is tightening, with the first batch of tungsten mining indicators for 2025 reduced by 4,000 tons compared to 2024, leading to a 6.45% decrease in total mining quotas [33] - China's tungsten production is expected to decline due to the lack of new mining projects and decreasing ore grades, with the first batch of mining indicators for 2025 set at 58,000 tons [33][29] - The industry is experiencing consolidation, with larger companies dominating production as smaller firms exit the market due to regulatory pressures [33][29] Demand Summary - The demand for tungsten is closely linked to industrial development and macroeconomic conditions, with hard alloys being the primary application, accounting for 58.51% of tungsten consumption in 2024 [50] - The demand for tungsten materials is expected to rise, particularly in the photovoltaic sector, where tungsten wire is gaining traction due to its superior performance [62][66] - A large-scale equipment update initiative is expected to boost demand for tungsten, with significant investments planned across various sectors [54][57]

Market Overview - The Shanghai Composite Index opened high but closed with a slight gain of 0.08%, indicating a "high open, low close" market trend [3] - Despite over 3,400 stocks declining, this reflects sector rotation rather than a market-wide downturn, suggesting a strategic approach for long-term investors [3] Sector Performance - The photovoltaic sector showed strong performance, with companies like Tongwei Co. and Oujing Technology hitting the daily limit up. A significant price reduction in silicon materials was announced, which could stimulate downstream installation demand, indicating potential long-term growth for the industry [3] - The shipping sector also saw gains, with Ningbo Shipping hitting the daily limit up due to ongoing geopolitical tensions affecting shipping routes. However, long-term prospects depend on the recovery of global trade, as indicated by the container freight index from COSCO Shipping [3] - Banking stocks strengthened, with Shanghai Bank and Chongqing Bank leading the gains. The decline in the 10-year government bond yield below 2.5% has led to increased interest in low-valuation, high-dividend stocks, presenting opportunities in retail banking leaders like China Merchants Bank and Industrial Bank [4] - The military industry faced a collective pullback, attributed to short-term sentiment following disappointing order forecasts from a military enterprise. However, the long-term outlook remains positive due to consistent growth in defense budgets and domestic replacements in sectors like drones and aircraft engines [4] - The non-ferrous and rare earth sectors weakened due to rising expectations of interest rate hikes by the Federal Reserve, which pressured commodity prices. Nonetheless, the long-term fundamentals for rare earths remain intact due to strict domestic quota controls [4] Investment Strategy - The current market environment resembles a "boiling frog" scenario, where indices remain stable while individual stocks decline significantly. Long-term investors should focus on broader trends rather than short-term fluctuations [5] - Key indicators for stock price movements include photovoltaic installation volumes, military order cycles, and banks' net interest margins, which are crucial for making informed investment decisions [5]