Summary of Tungsten Industry Conference Call Industry Overview - The tungsten industry is experiencing significant price fluctuations, with prices reaching 233,000 RMB/ton in May 2025, close to historical highs. The market may face short-term price adjustments due to profit-taking and price suppression sentiments, but the long-term outlook remains optimistic [2][3][23]. Key Points Market Dynamics - China's tungsten reserves account for 52% of global reserves, and its production represents 83% of the total global output. In 2024, tungsten concentrate production increased by 1.95% year-on-year, while APPEN production grew by 1.59%. Imports surged by 113%, primarily from North Korea, Myanmar, and Russia [2][5][7]. - The 2025 tungsten resource extraction quotas have been reduced, with some provinces not receiving allocations for the first time, indicating increased government control over resources. Limited overseas mining increases are expected, with a projected 0.5 million tons of metal from overseas mines this year [2][10][9]. Supply Chain and Consumption - The tungsten supply chain consists of upstream tungsten concentrate, midstream powders, and downstream tungsten products and hard alloys. Key consumption sectors include hard alloys, tungsten steel, tungsten materials, and tungsten chemicals [4]. - The global tungsten supply is composed of 65% from concentrates and 35% from recycled waste. China's recycling rate is approximately 20%, below the global average of 35% [2][13]. Geopolitical and Economic Factors - Increased geopolitical risks and heightened military spending are driving demand in advanced manufacturing and high-end applications, expanding the market for tungsten products. The mechanical industry is performing well, with growth in excavators, automobiles, and shipbuilding [18][19]. Price Trends and Expectations - Tungsten prices have seen rapid increases, with the highest price for APP reaching 245,000 RMB, an 18.93% increase from the lowest price earlier in the year. The market is expected to stabilize, with prices projected to range between 140,000 and 180,000 RMB per ton in 2025 [3][23][26]. - The acceptance of current tungsten prices by industry players is higher than in 2024, indicating a more stable market environment [26]. Export and Import Dynamics - Export control policies have limited the export volume of tungsten products, particularly raw materials, but have not significantly impacted domestic demand. The export volume of tungsten products has been declining, with a notable drop in 2024 [22][35]. - In 2024, approximately 12,429 tons of tungsten were imported, a 113% increase year-on-year, primarily from North Korea and Myanmar. The first quarter of 2025 saw a 50% increase in imports compared to the previous year [7][37]. Recycling and Environmental Standards - New industry standards set to be implemented in July 2025 are expected to regulate the import of recycled materials, potentially lowering production costs and promoting industry growth [15]. - China's recycling technology is still developing, with significant gaps compared to international standards, particularly in high-quality recycling processes [14][17]. Future Outlook - The tungsten market is expected to maintain a tight supply situation due to reduced extraction quotas and the depletion of existing mines. The overall supply-demand balance is relatively stable, with no significant imbalances anticipated [21][30][31]. Additional Insights - The mechanical industry is projected to continue its growth trajectory, with significant increases in production across various sectors, including automotive and renewable energy [19][20]. - The acceptance of price increases by end-users indicates a shift in market dynamics, where higher prices are becoming the norm rather than the exception [27][29].

Group 1 - The article discusses the dual approach of export controls and tightened mining quotas in China's tungsten industry, aiming to guide the sector towards high-end and green circular development [2][3] - The export control policy serves three purposes: resource security, industrial upgrading, and geopolitical strategy, enhancing China's dominance in critical mineral sectors [3] - In 2024, China's tungsten ore production is projected to be 67,000 tons, accounting for 82.7% of global production, highlighting China's significant role in the tungsten market [3] Group 2 - The first batch of tungsten mining quota for 2025 is set at 58,000 tons, a decrease of 6.45% compared to the previous year, with major production areas like Jiangxi seeing a reduction of over 10% [4] - As of April 29, the average price of tungsten powder reached 321,000 yuan per ton, reflecting a significant increase, indicating a strong market response to supply constraints [4][5] - The demand for tungsten is expected to rise due to manufacturing recovery, with high-end applications in aerospace, industrial robotics, and semiconductors driving this demand [5] Group 3 - Companies are adapting to policy changes by focusing on reducing uncertainties and enhancing their operational efficiency, with some firms reporting minimal impact from the export controls [6] - The export control measures are not entirely prohibitive but involve extended approval processes, affecting the operational timelines of companies [6] - The trend towards resource recovery and recycling is gaining traction, as companies seek to mitigate rising costs and enhance their competitive edge in a tightening market [6][7]