Ministry announced the "2014 China's nonferrous metals industry to analyze and 2015 Prospect" clearly states to improve management of rare metals. Promote the introduction of "rare Regulations"; adjust Rare mandatory production plan issued way, discover issued paratungstate smelting production targets; research-driven tungsten, molybdenum resource tax reform.
Ministry issued a document will explore paratungstate smelting production targets, the current price of tungsten Hard Rock Drill Bits is low, the mineral that quotas since 2002, the card will be a smelting industry chain control is another benefit agents, Chinese varieties take dividend restrictions will significantly stimulate the supply price rebound.
The current price of tungsten prices are low. 2014 onwards, subject to the terminal market downturn, Scheelite and ammonium paratungstate (APT) prices have been declining, is now in the relative level of the bottom. Tungsten ore link itself quota property, and this link if APT (ammonium paratungstate) subject to quota control, that it will be 10 years later on another part of the tungsten smelting benefit agent. Supply-side crunch is expected is expected to significantly stimulate tungsten prices rebound.
Tool for tungsten industry chain value chain links. Tungsten industry chain mainly in downstream value added carbide field, the whole, from the initial raw ore powder made from metal powder, about three times the value-added products; from concentrate to ordinary carbide powder, can improve product added about 6 times; from concentrate powder to other high-end CNC lathes and rotary blade carbide products, value-added products for more than 15 times or 30 times.
Tungsten ore sectors have implemented a quota system. Given the scarcity of resources and the significant strategic value of tungsten, the government since 2002 for tungsten mining companies issued quotas and suspended tungsten ore Well Drilling Bits mining licenses. Despite total control, the actual production of tungsten ore production quotas are still higher than the long-term.
Downstream demand stabilized. Carbide downstream market demand can be divided from the application of the basic cutting tools, mining tools and wear parts three categories.
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