Tungsten price rised more than 50%

This strategic metal China accounted for 8 percent, the recent strict control of export cause price soared
Recently, a surge in commodity prices caused concern, in particular, 80% of the global production of this metal from China. One of the most critical materials for the economy and defense of the Western world is that tungsten prices are rising faster than any major commodity.
Over the past two months, tungsten prices have risen more than 50% as people pay more and more worried about China's supply cuts. About 80% of the global production of this metal comes from China. China is banning polluting mines and implementing production targets to limit tungsten supply to about 9.13 million tonnes per year. In addition to China's limited production measures, Japan, the Netherlands and the United States overseas business demand recovery significantly since the beginning of the export volume surge, in short supply tungsten usher in "soaring."
The EU classifies tungsten as a "key" commodity category, and the British Geological Survey Institute ranks it as the top of the list of supply risks for maintaining the materials and materials needed for the UK economy and lifestyle.
Tungsten was first discovered in 1783. This light gray or white metal can be cast with steel for the alloy, forming a stable material at high temperatures. It is the highest melting point on the earth metal, the melting point of more than 3400 degrees Celsius.
Tungsten is a non-ferrous metal, refractory metal, rare metals, strategic metals and other products of the property, according to statistics show that China's tungsten ore is generally distributed in China's Nanling Mountains on both sides of the eastern coastal area of Guangdong, especially in southern Jiangxi Most of the reserves account for more than one-half of the world. While China's exports of tungsten raw materials accounted for more than 80% of the world market.
This kind of mineral is classified as a strategic metal, mainly because it has a very important role, widely used in contemporary communications technology, electronic computer, aerospace development, medicine and health, photographic materials, optoelectronic materials, energy materials and catalyst materials, Many weapons and equipment also need to use a lot of this raw material, tungsten high density means that it is also used in missiles to help them penetrate the defense measures.
Most of the consumption of tungsten is the automotive industry, about 25% of the supply is mainly used for cutting tools and machine tools. In the integrated circuit tungsten commonly used as electrodes, used to connect the transistor.
Tungsten is China's national strategic resources, limited by the quota of mining, the annual output of the theoretical limit of about 91,300 tons. But as often as molybdenum ore associated mining for mining in previous years exceeded the mining quota was once reached 50%.
China Ministry of Industry and June 6 issued a notice on the release of 2017 total tungsten production control indicators, said the production enterprises should comply with the output indicators, no indicators, ultra-standard production enterprises, to immediately ordered to stop production. Indicators should not be granted to the existence of environmental pollution, security risks of enterprises.
Customs data show that in January-July 2017, China's total exports of tungsten products 17,500 tons, an increase of 45.6% in July, still maintain a single month high of 3,000 tons, of which Japan, the Netherlands and the United States exports of tungsten concentrate maximum.
Downstream demand recovery is on the one hand, environmental inspectors this year, unprecedented, mine production significantly, or will lead to difficulties in procurement of raw materials, and even global supply shortages.
Domestic tungsten concentrate resources distribution to Hunan, Jiangxi, Fujian three provinces, while several major state-owned enterprises on the control of resources is being strengthened, oligopoly under the tungsten concentrate supply side will face more stringent regulation, operating rate is difficult to recover. At the same time due to the 15-16 years of low prices, new exploration of the mine construction blocked, new capacity is limited.
China's environmental inspectors to strengthen, will lead to tungsten concentrate production growth rate is far less than consumption and export growth, the market to further reduce the stock, the market in 2017 expected to maintain a shortage of the state.
September 13, China Tungsten Association issued an article that the overall price level of tungsten concentrate and reasonable price there is still a certain gap, has not yet returned to the level of 2014, still deviate from the value of resources.
In the first half of the year, domestic tungsten concentrate prices continued to stabilize and rebounded in the second half of the year, returning to the national average production line. Foreign tungsten concentrate production is generally stable, the stock tends to remain tight situation remains. To rationally look at the rise in tungsten concentrate prices, one is to control the total. Second, to rational sales. To prevent irrational sales arbitrage, to prevent the price ups and downs. Third, to prevent and control risks. To prevent the market malicious speculation, take precautions, pay close attention to and prevent market uncertainty caused by the market risk.