China tungsten association: strict control of rational sales of total amount of tungsten mining
The market price of tungsten raw materials rebounded slightly in the first quarter. The average price of tungsten concentrate in China in March was 97400 yuan per ton, down 13.35 percent from the same period last year, 2.10 percent higher than in February and 3.07 percent higher than in January. In the first quarter, the average price of tungsten concentrate in China was 95800 yuan / ton, down 14.08 percent from the same period last year (the same period last year), and 3.33 percent lower than the previous month. In March, the average price of (MB) European APT in London, UK, fell 15.90 percent, up 3.73 percent from a month earlier and 3.25 percent higher than in January. European APT prices averaged $269.98 a tonne in the first quarter, down 16.10 percent from a year earlier and 4.57 percent from a month earlier. In the second quarter, affected by market uncertainties, the demand for downstream tungsten in China weakened, and the vicious competition in the market intensified, causing anxiety, worry, and even panic in the tungsten market, aggravating the decline in domestic tungsten prices and the decline in raw material procurement. Since April, due to the chaos of market quotations, a small amount of APT low price panic selling arbitrage, as well as individual information websites hype non-mainstream low prices, fueling. Under the relatively stable situation of the international tungsten market price, the domestic tungsten market price appears unilateral irrational decline, and the current price has seriously deviated from the real supply and demand situation of the market. From January to May, the output of tungsten concentrate in China increased by 1.97% compared with the same period last year, the increase rate was 9.24% narrower than that in the first quarter, the pattern of tight supply of tungsten raw materials remained unchanged, and the supply and demand of tungsten market tended to be stable as a whole. The price of tungsten concentrate is lower than the cost of mining and separation, and the mining enterprises lose a lot of money. At the same time, due to the low price of tungsten raw materials, the downstream enterprises of tungsten also lose money, and the number of tungsten mines and APT enterprises that stop or reduce production is increasing. At the same time, in view of the current grim market situation, some large tungsten concentrate production enterprise groups reduce sales, are embarking on commercial reserves to reduce the pressure of declining economic benefits. At present, the fundamentals of market demand have not changed fundamentally, and the natural production reduction trend of most tungsten mines affected by the decline of tungsten resource grade continues to appear. The serious floods in the south lead to the shutdown of some tungsten mines, and the processing output and trade volume of mineral products continue to shrink, and the supply of tungsten raw materials market will become tighter. However, the mining cost of tungsten mine is rising, and the pressure of safety and environmental protection is increased, which plays a strong support for the stable supply and price stability of tungsten raw materials. At present, the room for the decline of tungsten raw material prices is already very small, and the market price should tend to be stable. China Tungstate Association strongly calls for: tungsten mining enterprises to strictly control the total amount of tungsten mining, rational sales, tungsten raw material production and trade enterprises to resist and prevent irrational sales arbitrage, jointly resist vicious competition and contrary to the market, contrary to good faith malicious speculation behavior, create a harmonious and win-win situation in the industry; It is necessary to strengthen the self-discipline of the industry, promote the construction of social integrity, boost market confidence, jointly create a fair competition environment in the market, maintain the stability of market prices, and promote the healthy development of the tungsten industry.
