Core Viewpoint - The price of tungsten has reached historical highs due to supply-demand dynamics, with black tungsten concentrate prices rising by 18.2% from April to May 2023, and ammonium paratungstate (APT) prices increasing by 17% in the same period [1][2]. Supply Dynamics - The overall supply of tungsten raw materials is decreasing, primarily due to a reduction in mining quotas and declining ore grades in existing mines. The first batch of tungsten mining quotas for 2025 has been set at 58,000 tons, a decrease of 4,000 tons from the previous year [2][3]. - Major tungsten production regions in China, such as Jiangxi and Hunan, are experiencing quota reductions, with Jiangxi's quota down by 2,370 tons compared to the previous year [2]. - The tightening of mining regulations and the decline in ore grades from older mines are significant factors contributing to the reduced supply [3]. Demand Potential - There is potential for growth in tungsten demand across various sectors, including PCB cutting tools, low-altitude economy, and emerging technologies like controlled nuclear fusion and additive manufacturing [3][4]. - The rapid development of new energy vehicles is expected to drive demand for tungsten in specific applications, despite a potential short-term decline in demand from the steel metallurgy sector [4]. Industry Outlook - Industry experts maintain an optimistic outlook for the tungsten sector, anticipating continued price increases due to limited supply and rising production costs [5][6]. - The current price levels are seen as undervalued, with expectations for tungsten prices to stabilize around a new higher price center [6]. - The demand for tungsten in photovoltaic applications is also expected to grow, contributing to a positive long-term outlook for the tungsten industry [6].