Summary of Tungsten Industry Conference Call Industry Overview - The global tungsten consumption is approximately 110,000 tons of pure tungsten annually, with China accounting for 60% of this demand, making it the largest consumer and supplier in the world [1][3] - China controls nearly half of the tungsten production through five major companies, significantly influencing both domestic and international markets [1][8] Key Points and Arguments - **Price Surge**: Since early 2025, prices for tungsten concentrate, APT, and tungsten powder have increased by about 50%, reaching historical highs, driven by strategic value expectations rather than fundamental supply-demand dynamics [1][4] - **Export Control Impact**: New export control regulations from China, effective February 4, 2025, have led to a sharp increase in international APT prices, highlighting the significant impact of Chinese policy changes on the global market [1][7] - **Supply and Demand Dynamics**: Despite stable supply levels in 2025 compared to 2024, increased inventory replenishment needs and slight consumption growth have contributed to rising prices [1][9] - **Profit Distribution**: There is a significant imbalance in profit distribution within the tungsten industry, with upstream mining profits exceeding 60%, while midstream smelting profits are below 3%, which is detrimental to the health of the industry [1][12] - **Future Demand Expectations**: Demand for tungsten is expected to grow in 2026, particularly due to military applications, while tighter mining quotas in China may lead to reduced supply and further price increases [1][15] Additional Important Insights - **Market Structure**: The tungsten industry is divided into upstream (mining), midstream (smelting), and downstream (deep processing products) segments, with raw materials sourced from both mining and recycling [2] - **Recycling Trends**: China has a recycling rate of about 30%, while developed countries exceed 50%, indicating potential for growth in recycled tungsten usage [3][32] - **Inventory Levels**: Current tungsten inventories are relatively low across national, enterprise, and social levels, with concerns about price volatility affecting stockpiling behavior [21][22] - **Long-term Production Challenges**: New mining projects and upgrades to existing facilities require significant time (5-10 years), limiting immediate production increases despite high prices [26][30] - **Market Volatility**: Price fluctuations are heavily influenced by psychological expectations and policy changes rather than pure market supply-demand, which could lead to rapid corrections if prices rise too quickly without support [17] This summary encapsulates the key insights from the tungsten industry conference call, highlighting the current market dynamics, challenges, and future expectations.

Core Viewpoint - The tungsten market is experiencing significant price increases due to tightening supply and rising demand, with major tungsten companies adjusting their prices accordingly [5][6][7]. Price Trends - Tungsten concentrate prices have surged, with a recent increase of 3,000 to 10,000 yuan per ton, reaching 217,000 yuan per ton as of August 20, marking a 51.75% increase since the beginning of the year [5][6]. - Ammonium paratungstate (APT) prices are reported at 311,500 yuan per ton, up 47.98% year-to-date, while tungsten powder prices have risen to 482.5 yuan per kilogram, reflecting a 53.91% increase [6]. Supply Dynamics - The Ministry of Natural Resources has set a control target for tungsten mining at 58,000 tons for 2025, a reduction of 4,000 tons (6.45%) compared to the previous year [6]. - Major tungsten-producing provinces, Jiangxi and Yunnan, have also seen reductions in mining volumes, contributing to a significant decrease in market circulation [6]. Demand Drivers - The demand for tungsten hard alloys is growing due to their superior properties, with applications in various industries including aerospace, defense, and electronics [7]. - The demand for tungsten in the renewable energy sector is expected to rise, with projections indicating a 22% year-on-year increase in consumption for lithium battery applications by 2025 [7]. Stock Performance - Tungsten-related stocks have generally risen, with an average increase of 10.1% since August, led by companies such as Luoyang Molybdenum and Zhongtung High-tech, which saw increases of 22.48% and 18.99%, respectively [8]. - The median rolling price-to-earnings ratio for tungsten stocks is 30.24, with some companies like Shengtun Mining and Luoyang Molybdenum having ratios below 20 [8]. Company Performance - Among the eight companies that have reported their half-year results, three-quarters have shown positive growth, with Xianglu Tungsten and Guangsheng Nonferrous turning losses into profits [8]. - Luoyang Molybdenum is expected to report a net profit of 8.2 to 9.1 billion yuan for the first half of the year, reflecting a year-on-year growth of 51.37% to 67.98% [8].

Group 1 - The core viewpoint of the articles indicates a significant increase in tungsten prices, with various companies adjusting their product prices upwards in mid-August [1][4] - Jiangxi Tungsten Holdings Group has set the guiding price for standard grade black tungsten concentrate at 213,000 yuan per standard ton, an increase of 19,000 yuan per standard ton, representing a rise of 9.79% from the previous half month, and a monthly increase of 17.03% [1] - Changyuan Tungsten Industry has also raised its prices for 55% black tungsten concentrate and 55% white tungsten concentrate to 211,000 yuan per standard ton, both up by 18,500 yuan per standard ton, while ammonium paratungstate (APT) is now priced at 310,000 yuan per ton, up by 27,000 yuan per ton [1] Group 2 - Industry data shows that tungsten prices have surged by 5,000 to 10,000 yuan per ton recently, with the price of 65% black tungsten concentrate reaching 216,000 yuan per standard ton, a 51.1% increase since the beginning of the year [4] - The price of 65% white tungsten concentrate is at 215,000 yuan per standard ton, reflecting a 51.4% increase year-to-date, while APT is priced at 320,000 yuan per ton, up 51.7% since the start of the year [4] - Market analysts attribute the current rise in tungsten prices to a combination of supply contraction, increased demand, supportive policies, and market sentiment, while cautioning against speculative behavior [4]

Group 1 - The company Xiamen Tungsten (600549.SH) has indicated that some of its products are applied in the military industry [1]

Investment Rating - Industry rating: Recommended [3] Core Insights - The lithium carbonate price increased by 0.91% to 72,000 CNY/ton as of August 8, 2025, indicating a supply-demand imbalance in the industry that may be difficult to resolve [6][42] - Nickel prices rose, with LME nickel closing at 212,232 USD/ton, up 1.51% from August 1, 2025, while domestic nickel prices also increased by 1.05% to 121,000 CNY/ton [21][24] - Cobalt prices showed mixed trends, with electrolytic cobalt down 1.48% to 266,000 CNY/ton, while cobalt oxide rose by 2.54% to 203.50 CNY/kg [25][30] - Antimony prices decreased, with antimony ingot averaging 185,000 CNY/ton, down 1.33% from July 31, 2025, amid tight supply conditions [31][35] - The nickel industry faces potential supply disruptions due to the suspension of production lines by Chinese mining giant Tsingshan in Indonesia, which may impact local nickel mining and support nickel prices [12][24] Summary by Sections Nickel and Cobalt Industry Updates - Nickel prices increased, with LME nickel at 212,232 USD/ton and domestic nickel at 121,000 CNY/ton, while supply remains stable despite weather conditions [21][24] - Cobalt prices fluctuated, with electrolytic cobalt down and cobalt oxide up, influenced by raw material shortages from the Democratic Republic of Congo [25][30] Antimony Industry Update - Antimony prices fell, with domestic antimony ingot at 185,000 CNY/ton, as supply remains tight and production is limited due to many manufacturers being offline [31][35] Lithium Industry Update - Lithium carbonate prices rose to 72,000 CNY/ton, with high inventory levels and slow de-stocking, indicating ongoing supply challenges [6][42] Rare Earth Industry Update - The rare earth market remains stable, with domestic production indicators not showing significant growth, and the U.S. government is working to rebuild its rare earth supply chain [15][42] Tin Industry Update - Tin prices increased, with LME tin at 33,900 USD/ton, as supply from Myanmar remains constrained due to production issues [9][15] Tungsten Industry Update - Tungsten prices rose slightly, with white tungsten at 193,500 CNY/ton, as supply remains tight due to reduced mining quotas [10][11] Investment Recommendations - Recommended companies include Tianhua New Energy, Yahua Group, and Ganfeng Lithium, which are expected to benefit from the current market dynamics in lithium supply [42]

Core Viewpoint - Zhangyuan Tungsten Industry (002378.SZ) reported a significant increase in revenue and net profit for the first half of 2025, driven by rising tungsten product prices and increased sales volume [1] Financial Performance - The company achieved an operating revenue of 2.406 billion yuan, representing a year-on-year growth of 32.65% [1] - The net profit attributable to shareholders was 115 million yuan, reflecting a year-on-year increase of 2.54% [1] Market Factors - The growth in total operating revenue is attributed to the rise in tungsten product market prices and an increase in product sales [1]

Core Viewpoint - Zhangyuan Tungsten Industry reported a significant increase in revenue and net profit for the first half of 2025, indicating strong business performance and growth potential in the tungsten industry [2] Financial Performance - The company's operating revenue reached approximately 2.406 billion yuan, representing a year-on-year increase of 32.65% [2] - The net profit attributable to shareholders was about 115 million yuan, showing a year-on-year growth of 2.54% [2] - Basic earnings per share were reported at 0.1 yuan, reflecting an increase of 11.11% compared to the previous year [2]

Group 1 - The stock price of Xianglu Tungsten Industry is reported at 9.02 yuan as of August 5, 2025, reflecting a decrease of 0.77% from the previous trading day, with a trading volume of 1.29 billion yuan [1] - Xianglu Tungsten Industry is primarily engaged in the research, development, production, and sales of tungsten products, including tungsten powder and hard alloys, which are widely used in mechanical processing and mining industries [1] - As of July 31, 2025, the number of shareholders for the company is 25,308, a decrease of 3,951 shareholders compared to July 20, representing a 13.50% decline [1] Group 2 - The company expects a net profit for the first half of the year to be between 15 million yuan and 22 million yuan [1] - On August 5, 2025, the net outflow of main funds for Xianglu Tungsten Industry was 31.98 million yuan, with a cumulative net outflow of 81.87 million yuan over the past five days [1]

Summary of Tungsten Industry Conference Call Industry Overview - The tungsten industry is experiencing a reduction in mining quotas, with the first batch of quotas for 2024 down by 6.5% year-on-year, leading to an increase in black tungsten concentrate prices, which approached 200,000 yuan/ton by the end of July, reflecting a rise of over 30% since the beginning of the year [1][2] - China's tungsten consumption is projected to be around 70,000 tons in 2024, with mining supply at 60,000 tons and the remainder sourced from recycling [1][2] - Hard alloys account for nearly 60% of tungsten consumption, while tungsten materials (including photovoltaic tungsten wire) make up 23% [1][2] Price Trends - Since 2020, tungsten prices have shown a gradual upward trend, with significant increases following the announcement of the first batch of quotas each year [4] - The highest operating rate in five years was recorded in June, indicating resilient demand [4] Global and Domestic Supply - Global tungsten resources are estimated at 4.6 million tons, with China holding 52% of the reserves and accounting for 83% of the production, primarily concentrated in Jiangxi and Hunan provinces [5] - China has implemented total control over tungsten mining since 2002, with the first batch of quotas for 2025 also down by 6.5% year-on-year [6] Future Supply Expectations - Domestic projects like Dahuatang and Zhuxi are expected to add approximately 13,000 tons of tungsten supply by 2030, while overseas projects in Kazakhstan and Australia are anticipated to contribute an additional 10,000 tons [7] Recycling and Cost Advantages - The proportion of recycled tungsten in China is currently low but offers cost advantages, with a shorter production cycle and lower manufacturing costs compared to primary tungsten [8] Import and Export Dynamics - Despite producing 80% to 90% of global tungsten concentrate, China still imports about 10,000 tons annually, with downstream products being exported after powder metallurgy [9] Demand Concentration and Trends - Tungsten demand is primarily concentrated in four sectors: special steel, chemicals, tungsten materials, and hard alloys, with significant growth in hard alloys and tungsten materials expected [10][11] - The hard alloy sector has seen production increase from 23,000 tons in 2015 to 60,000 tons in 2024, with a compound annual growth rate of 11% [13] Impact of Major Projects - The Yashan project, with an investment of 1.2 trillion yuan, is expected to significantly increase tungsten demand over the next decade due to extensive use of tungsten tools and equipment [12] Technological Advancements - The implementation of nuclear fusion technology, expected around 2040, could dramatically increase global tungsten demand, with a single 1GW fusion reactor requiring 29,000 tons of tungsten over its 40-year lifespan [17] Market Dynamics - The domestic supply-demand balance indicates a growing gap, with overall consumption projected to rise from 60,000 tons in 2024 to over 70,000 tons by 2027 [18] Key Companies in the A-Share Market - Five key companies in the A-share market are involved in tungsten: Xiamen Property, Zhonggao New, Zhangyuan Property, Xiaolu Property, and Anyuan Meiyu, with Zhonggao New and Zhangyuan Property focusing solely on tungsten business [19][20]

Industry Overview - The ammonium paratungstate (APT) industry in China has seen significant development driven by national policy support and market demand, with China being the largest producer and seller of tungsten globally [1][7] - As of June 2025, the price of APT in China reached 251,500 yuan per ton, marking a year-on-year increase of 19.19% [1][7] - The Chinese government has implemented strict total control and quota management on tungsten mining to ensure sustainable resource utilization, with the first batch of tungsten mining indicators for 2025 being tightened, reducing the total control indicator by 4,000 tons, a decrease of 6.45% compared to 2024 [1][7] Supply and Demand Dynamics - The supply of tungsten concentrate is limited due to government policies, which in turn affects APT production [1][7] - There is a continuous increase in demand for APT driven by rapid global manufacturing and infrastructure development, particularly in downstream industries such as hard alloys, tungsten material processing, and petrochemicals [1][7] Production and Profitability - As of June 2025, the operating rate of APT in China was 74.95%, an increase of 9.76 percentage points year-on-year, driven by high APT prices that expanded profit margins for producers [9] - The gross profit margin for APT in the last week of June 2025 was 0.08 yuan per ton, a decrease of 52.94% year-on-year, indicating challenges in maintaining profitability due to raw material price fluctuations and increased competition [11] Export Trends - China has historically been a major exporter of APT, with export volumes significantly exceeding imports. However, in 2025, the implementation of export control policies led to a notable decline in export quantities, with a 52.78% year-on-year decrease in the first five months of 2025 [12] Key Players in the Industry - Major companies in the APT market include Xiamen Tungsten Industry Co., Ltd., Zhangyuan Tungsten Industry Co., Ltd., and Jiangxi Tungsten Industry Group, which are leaders in production scale, technology, and market share [14] - Xiamen Tungsten Industry has an annual APT production capacity of 45,000 tons and is recognized for its high-purity APT production technology [16] - Zhangyuan Tungsten Industry has a production capacity of 22,000 tons per year and has achieved significant improvements in production efficiency through advanced technologies [18] Industry Development Trends - The APT industry is expected to focus on technological innovation and green production methods to enhance product quality and production efficiency while minimizing environmental impact [20] - Companies are likely to accelerate the integration and extension of the industrial chain to enhance competitiveness and reduce risks, potentially through mergers and acquisitions [21] - The demand for APT is anticipated to expand further due to the acceleration of global industrialization and the growth of high-end manufacturing sectors such as renewable energy and aerospace [22]