Core Viewpoint - Tungsten prices have surged, with ammonium paratungstate (APT) reaching a historical high of 250,000 yuan/ton, driven by tight supply conditions and decreasing ore grades [1][2][3] Group 1: Price Trends - On May 29, 2023, the price of 65% black tungsten concentrate reached 171,000 yuan/ton, up 19.6% year-to-date and 22.1% from the lowest price this year [1] - The price of 65% white tungsten concentrate was 170,000 yuan/ton, reflecting a 19.7% increase year-to-date and a 22.3% rise from the year's lowest price [1] - The average grade of tungsten ore is projected to decline from 0.42% in 2024 to 0.28% in 2025, increasing mining costs to over 100,000 yuan/ton [2] Group 2: Supply Dynamics - Global tungsten resources are concentrated, with China holding 55% of the 4.4 million tons of tungsten reserves [1] - The first batch of tungsten mining quotas for 2025 is set at 58,000 tons, a decrease of 4,000 tons (6.45%) from 2024 [1] - Major producing regions in China, such as Jiangxi and Yunnan, will see significant reductions in mining quotas, while low-producing areas will have their quotas set to zero [1] Group 3: Demand Drivers - Tungsten is essential in various industries, including aerospace, automotive, and electronics, with over 40% of tungsten demand coming from hard alloy tool production [2] - The military sector is experiencing rapid growth in tungsten demand, alongside increasing needs in high-end fields like aerospace, industrial robotics, and medical devices [2][3] - A report from CITIC Securities forecasts a supply-demand gap of 4,679 tons in the tungsten industry by 2025, which will support tungsten prices [3]