Institutions: Tungsten supply and demand fundamentals are experiencing a strong resonance

Huayuan Securities believes that the existing high-priced inventory is being absorbed, and tungsten prices have adjusted slightly. On the supply side, mine safety oversight and environmental controls are becoming more stringent; during holidays and in the main producing areas, inspection efforts have increased, and domestic tungsten mine operating rates have declined. On the demand side, in January to February, the tungsten market saw a rapid rise; domestic downstream end-user companies have a high level of enthusiasm for restocking, which has gradually driven the accumulation of industry raw-material inventories. In the recent period, the end-market has mainly focused on digesting prior inventory, and there has been no large-scale new restocking activity. Guojin Securities believes that the recent decline in tungsten prices is more due to traders taking profits rather than a turning point in fundamentals. Recently, Ganzhou City announced the launch of a special campaign to crack down on illegal mining-related crimes through coordinated prevention and governance; and against the backdrop of overseas intensifying strategic stockpiling, tungsten’s priority may be relatively higher. The tungsten supply-and-demand fundamentals are seeing a strong resonance. (Securities Times)