Favorable Factors for the Tungsten Market:
Tightening Supply of Raw Materials: Mining quota policies, environmental protection supervision measures and safety production control restrict the release of mine resources, coupled with the decline in the grade of old mines, limited replenishment of new mines, increased industry concentration, and market reluctance to sell, resulting in tight supply of raw materials, supporting price increases.
Growth in Emerging Demand: The demand for high-density tungsten alloys, cemented carbides and other tungsten products in new energy, semiconductors, aerospace, military and high-end manufacturing fields continues to grow, boosting the market.
Enhanced Cost Effect: High energy prices, rising logistics costs and labor costs, coupled with rising prices of tungsten and molybdenum raw materials, jointly push up the cost of the industrial chain.
International Market Linkage: Geopolitical factors and supply chain security issues push up international tungsten prices and boost domestic market expectations. Although the export of some domestic tungsten products is restricted, the overall resource value assessment has increased.
Policy Expectation Support: The country has increased its attention to strategic mineral resources, and the policy orientation of resource security and industrial chain security is beneficial to medium- and long-term industry confidence. The recent "anti-involution" policy further guides the healthy and orderly development of related industries.
Negative Risks in the Tungsten Market:
High Prices Suppress Demand: Tungsten prices continue to run at high levels, compressing the profit margins of downstream terminal companies, reducing market purchasing willingness, affecting short-term transaction volume, and the risk of long-term demand being suppressed or the application of alternative materials being accelerated.
Inventory Accumulation Risk: If the downstream continues to resist purchasing under the current high price and mining and smelting companies maintain normal production, it may lead to the gradual accumulation of social inventory in related links, forming downward pressure on prices in the future.
Macroeconomic Shocks: The downward pressure on the macroeconomic environment still exists, and the manufacturing boom fluctuates, which may affect the actual consumption capacity of tungsten products in terminal fields such as tools, machinery, and automobiles, and ultimately limit the room for price increases.
Overseas Supply Shocks: The recovery of mine production in major tungsten resource countries (such as Vietnam and South Korea) has accelerated, overseas tungsten products have flowed into the market, and intensified international competition may impact prices.
Financial Market Fluctuations: The overall sentiment of the commodity market and exchange rate fluctuations may increase the risk of short-term price fluctuations in tungsten and affect the purchasing decisions of traders and end users.
