Core Viewpoint - The company is optimistic about the tungsten market's long-term prospects due to its strategic importance and the tight supply-demand balance in the industry [1][4]. Industry Overview - Tungsten is considered a strategic metal globally, with its consumption being less sensitive to price changes, indicating a "hard consumption" nature [1][4]. - The supply of tungsten is currently tight, particularly in the photovoltaic sector, where demand for tungsten wire is increasing [1][4]. - China is the world's leading tungsten producer and consumer, with an estimated tungsten ore production of approximately 67,000 metric tons in 2024, accounting for 82.7% of global output [1][4]. Supply and Demand Dynamics - The mining of tungsten in China operates under a quota system, limiting the potential for rapid increases in production capacity [1][4]. - Recent years have seen significant growth in the application of tungsten in photovoltaic sectors, contributing an additional 5%-8% to global tungsten demand [1][4]. - The sudden increase in demand has led to a short-term supply-demand imbalance, resulting in higher and stabilizing tungsten prices [1][4]. Molybdenum Insights - Molybdenum's primary application is in the stainless steel sector, and its production is often linked to copper mining [5][6]. - Rising copper prices have led mining companies to prioritize high-grade copper extraction, inadvertently increasing the supply of associated molybdenum, which has contributed to a slight decline in molybdenum prices over the past two years [5][6]. - The core value of molybdenum lies in its deep processing, which enhances product value [6].