Analysis of the development situation of China's tungsten industry from 2008 to 2009

I. Summary of economic operation of tungsten industry from 2008 to 2009

In 2007, China's tungsten industry was affected by macroeconomic regulation and control, and the volume of tungsten products import and export and the overall economic benefits of the tungsten industry all declined. The sales revenue of the whole industry was 35.6 billion yuan, up 14.46% year-on-year. The average annual sales price of domestic tungsten concentrates was 98,900 yuan, down 8.67% year-on-year. The supply and demand of tungsten market was basically balanced, and the price remained stable.

Influence policy effect national macro-control since October 2008, tungsten product export tariffs, resource tax increases and other global financial crisis on the tungsten industry increasingly apparent, exports of tungsten decline in prices, the overall efficiency of the tungsten industry has been badly hit. Some tungsten enterprises are struggling to manage their operations, and their operating losses have expanded. Some tungsten mines and tungsten smelting processing plants are in a state of suspension and semi-discontinuation. The sales revenue of the whole industry was 39.1 billion yuan, an increase of 9.83% over the 35.6 billion yuan in 2007. The growth rate slowed down by 4.63 percentage points; the profit was 3.84 billion yuan, down 43.03% from the 6.74 billion yuan in 2007.

In 2009, China's tungsten concentrate production was 99,000 tons, an increase of 17.16%. In the past few years, only in 2005 due to the impact of macroeconomic regulation and control, tungsten concentrate production fell back to 73,404.41 tons, with a growth rate of ~14.05%. In other years, the amount of tungsten concentrate mined is growing. See the chart below, 13~1, 2003-2010 China's tungsten concentrate production and trend chart.

Table 2003-2010 China's tungsten concentrate production and change trend chart

2. Analysis of supply and demand and price trends in the tungsten market from 2008 to 2009

In 2008, China's tungsten concentrate production was 84,470 tons, an increase of 5.01% over 2007, an increase of 4.94 percentage points. Among them, the accumulated tungsten concentrate production in Hunan and Guangdong decreased by 10.86% and 1.42% respectively, and continued to decline; the accumulated tungsten concentrate production in Inner Mongolia, Zhejiang, Jiangxi, Henan, Guangxi and Hubei increased by 11.75%, 5.59% and 5.52 respectively. %, 83.50%, 37.95% and 68.94% continue to grow.

After the domestic tungsten concentrate price exceeded 100,000 yuan in 2006, it has slowed down for two consecutive years. The price of tungsten in the first three quarters has been stable, but the price of major tungsten products in the fourth quarter has dropped by more than 20%. Especially after entering October, the domestic tungsten market situation has changed suddenly. The price of tungsten market has continued to fall. First, it has fallen below 80,000 tons. Compared with the highest price in 2006, it has fallen by more than 50%. In October alone, the price fell more than 30%; continued to fall below 70,000 tons in November; fell below 60,000 tons in December, tungsten concentrate prices hit the bottom line at the end of the year, some tungsten mines and tungsten smelting plants suffered losses and were discontinued and semi-discontinued In the state, the tungsten market is in a priceless market, and the transaction is light.

In 2008, the annual average selling price of domestic tungsten concentrate was 83,600 tons, which was 15.47% lower than the 98,900 yuan in 2007. The average monthly price dropped by 39.96%. The annual average sales price of domestic APT was 133,300 tons. Compared with the 152,900 yuan in 2007, the price decreased by 14.13%, and the average monthly price dropped by 37.75%. The annual average sales price of domestic tungsten iron was 155,400 yuan, which was 8.37% lower than the 176,600 yuan in 2007. The average price dropped by 26.89%.

In 2009, it was concluded that the tungsten ore market experienced two major increases, and the highest price reached 73,500,000 tons at the end of August and early September. In the first quarter of 2009, domestic tungsten concentrate prices reached a maximum of 665,000 tons, from the beginning of January to 64,000 tons to the highest value of 65,000 yuan per ton on February 23, because many enterprises started after the Spring Festival. It is necessary to purchase raw ore for production, and some enterprises are tentatively raising the quotation to see if the market can accept it, but it is counterproductive. Then the market can't hold the price down, although the first quarter price has a guiding effect on the market this year, and on January 15 The lowest price of the day reached the lowest price of 55,000 tons this year. Issued a "notice issued in 2009 on tungsten ore, antimony ore and rare earth ore mining total control targets" under the May 7, 2009 Land and Natural Resources. At the same time, the application for the acceptance of the mining rights of rare earth ore from the tungsten ore mine was suspended until June 30, 2010. The notice clearly stated that in 2009, the national total control index of tungsten concentrate mining was 68,55 tons, of which the main mining index was 60,440 tons and the comprehensive utilization index was 8,115 tons. Therefore, domestic tungsten concentrate prices began to rise slowly in the second quarter, and the average price remained at 60,000 tons, and the market turnover was light. In the third quarter, the price of tungsten concentrate reached the highest level of this year, 73,500 thousand tons. The price of this season was also increased by the trot, reaching the highest value of the year by the end of August and early September, but the market could not last long, and the price of concentrate in mid-September Started to decline. In the fourth quarter, the price of tungsten concentrate was generally stable. From the beginning of November, the price of tungsten concentrate began to increase slightly. Until the end of this year, the price of tungsten ore continued to increase, and closed at 73,000 tons at the end of the year.

3. The regulatory policies issued by China's tungsten industry in 2008-2009

At the beginning of 2008, a total of 66,850 tons of tungsten aggregates (including 65% of tungsten trioxide) were exported. Last year, the implementation of the total mining control index for tungsten mines was relatively good, and the country did not exceed the target mining. At the beginning of 2008, 87,620 tons of rare earth ore (REO) mining total control indicators were issued, including 78,500 tons of light rare earths and 9,120 tons of medium and heavy rare earths. Overall, in 2008, the rare earth production province (district) did not exceed the total amount of rare earth mining control index mining, and the rare earth mine implementation of the total mining control index achieved good results. Judging from the current market supply and demand situation, the overall trend of the rare earth market is not optimistic. According to the knowledge of this organization, in 2008, like other non-ferrous metals and other mineral products, the global market for rare earth oxides shrank and prices fell sharply. In 2009, China's rare earth mining and processing industry may face greater challenges.

Taking into account the implementation of total control over the previous year, market demand and actual conditions, the Ministry of Land and Resources, in determining and releasing the 2009 total control indicators for tungsten ore and rare earth ore, follows the following principles: Does not break through the National Mineral Resources Plan approved by the State Council. The requirements for the total planned mining volume of the relevant minerals; the main mining index of tungsten ore and the rare earth mining index shall not be increased in principle, and appropriate comprehensive utilization shall be encouraged; the mining index shall be increased as appropriate, and the mining index shall be increased or decreased according to the actual situation. .

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