China tungsten association advocates reducing production of tungsten mining enterprises-Shanghai Metals Market

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China tungsten association advocates reducing production of tungsten mining enterprises

Translation 10:49:54PM May 18, 2019 Source:China tungsten industry association
The content below was translated by Tencent automatically for reference.

SMM News: on May 17, the China Tungsten Industry Association held a forum in Ganzhou for the responsible persons of some tungsten enterprises (groups). The member enterprises of the presidium of China Tungsten Association-China Tungsten High and New material Co., Ltd., Jiangxi Tungsten Industry holding Group Co., Ltd., Xiamen Tungsten Industry Co., Ltd., Luoyang Luanchuan Molybdenum Group Co., Ltd., Chongyi Zhangyuan tungsten industry co., Ltd., Hunan Chenzhou mining co., Ltd., Guangsheng non-ferrous metals co., Ltd., Guangdong Xianglu tungsten industry co., Ltd., Antai Tianlong tungsten and molybdenum technology co., Ltd A total of 20 people in charge of Ganzhou Haisheng Tungsten and Molybdenum Group Co., Ltd attended the meeting. The main topics of the meeting were: analyzing the situation of supply and demand in the tungsten market, studying and strengthening industry self-discipline, establishing an information exchange and communication mechanism, and giving full play to the industry coordination role of industry associations and the industry leading role of large backbone enterprises. We should promote the supply-side structural reform of the tungsten industry, eliminate overcapacity at the middle and low ends, boost market confidence, and enhance the overall competitiveness of the industry, so as to jointly maintain the healthy and stable operation of the tungsten market and promote the high-quality development of the tungsten industry.

The tungsten market price rebounded slightly in the first quarter of this year, and the international tungsten market price remained stable, but after April, it was adversely affected by the lack of confidence in the tungsten market, hidden worries about market expectations, and the disturbance of overcapacity, which triggered adverse reactions in the market. The tungsten market supply and demand is weak, the domestic market occasionally deviates from the market mainstream price cash transaction, the price falls slightly, the industry economic benefit drops. According to the China Tungsten Association, 123 major tungsten enterprises achieved a year-on-year increase of 0.16% in the first quarter, a quarter-on-quarter decline of 10.78%, an increase of 31.9 percentage points lower than that of the same period last year. Realized profits and taxes fell 17.32 percent from a year earlier, an increase of 78.64 percentage points from the same period last year, and realized profits fell 46.18 percent from a year earlier. Among them: the profit of tungsten mining enterprises decreased by 34.79% compared with the same period last year, the profit of tungsten smelting enterprises decreased by 35.67%, the profit of cemented carbide enterprises decreased by 13.93%, and the profit of tungsten enterprises decreased by 58.88% compared with the same period last year. The profit of tungsten and iron enterprises fell 82.26% compared with the same period last year. According to the China Tungsten Association, the loss area of enterprises in the statistics is 35.00%, which is 14.27 percentage points larger than that in the fourth quarter of 2018 and 20.27 percentage points larger than that in 2018. Among them, the loss surface of mining enterprises is 39.39%, that of smelting enterprises is 42.31%, that of cemented carbide enterprises is 27.08%, and that of tungsten enterprises is 36.36%. The delegates held serious discussions on hot issues such as the trend of supply and demand in the tungsten market, the economic situation of the industry, and the high-quality development of the tungsten industry.

The meeting agreed that the output of foreign tungsten concentrate continues to remain stable, the inventory is still low, affected by the decline in tungsten resource grade, rising mining costs, increased pressure on safety and environmental protection, and so on, the situation of tight supply of domestic tungsten raw materials has not changed. The fundamentals of the long-term improvement of China's economy are more stable, and the number of stable factors in economic operation is also increasing. With the implementation and landing of a series of policies represented by "six stability", the market financing environment has improved, and the capital market has warmed up. Consumer confidence continued to pick up. After falling for three quarters, the confidence index of non-ferrous metal enterprises warmed up in the first quarter of this year. The index of new orders, production and purchase of raw materials was higher than the critical value, and the non-ferrous metal market warmed up and confidence improved. The sustained and steady growth of high-tech manufacturing and equipment manufacturing, infrastructure construction and private investment will continue to stimulate the demand of the tungsten market, and the fundamentals of the tungsten market have not changed much.

The meeting unanimously agreed that the tungsten enterprises (groups) attending the meeting will jointly maintain the supply order of tungsten raw materials market, and the output of tungsten concentrate will be reduced by not less than 10 percent this year. According to the statistics of the China tungsten association, the annual output of tungsten concentrate produced by the participating enterprises (groups) accounts for 86% of the statistical output of the china tungsten association, and the major tungsten enterprises (groups) in China are the first to reduce production, which will play a positive role in improving the contradiction between supply and demand in the current tungsten market. At the same time, the China Tungsten Association has proposed to the national tungsten mining enterprises to strictly implement the total quantity control index of tungsten concentrate mining issued by the state, control production capacity, reduce output, and rationally sell, so as to jointly maintain the order of supply of tungsten raw materials in the market. We will promote supply-side structural reform in the tungsten industry.

The meeting agreed that the follow-up disposal of tungsten products involved in the Pan-Asian Nonferrous Metals Exchange had a negative impact on the expectations of the tungsten market, but in view of the complexity of the subsequent disposal of tungsten products involved in the case, the volume of China's tungsten market, and the countermeasures taken at the same time, Its impact on the tungsten market is limited. The China Tungsten Association will give full play to its role as a bridge, actively do a good job in the prevention and control of market risks, and maintain the healthy and stable operation of the industry and the security of national strategic resources.

The meeting unanimously called for strengthening self-discipline in the industry, promoting the construction of social integrity, and creating a fair competition environment in the market. Upstream and downstream enterprises should unite sincerely, strengthen cooperation, rationally analyze and scientifically study and judge market trends, boost market confidence, and jointly resist vicious competition in the industry and malicious speculation contrary to the market. We will promote the rational return of the overall price of tungsten products upstream and downstream, promote the harmonious, honest and win-win development of the tungsten industry, drive innovation to make up for the shortcomings of industrial development, strive to resolve excess capacity, reduce costs and increase efficiency, and speed up the transformation and upgrading of the tungsten industry. To promote the high quality development of tungsten industry in China.

China tungsten association advocates reducing production of tungsten mining enterprises

Translation 10:49:54PM May 18, 2019 Source:China tungsten industry association
The content below was translated by Tencent automatically for reference.

SMM News: on May 17, the China Tungsten Industry Association held a forum in Ganzhou for the responsible persons of some tungsten enterprises (groups). The member enterprises of the presidium of China Tungsten Association-China Tungsten High and New material Co., Ltd., Jiangxi Tungsten Industry holding Group Co., Ltd., Xiamen Tungsten Industry Co., Ltd., Luoyang Luanchuan Molybdenum Group Co., Ltd., Chongyi Zhangyuan tungsten industry co., Ltd., Hunan Chenzhou mining co., Ltd., Guangsheng non-ferrous metals co., Ltd., Guangdong Xianglu tungsten industry co., Ltd., Antai Tianlong tungsten and molybdenum technology co., Ltd A total of 20 people in charge of Ganzhou Haisheng Tungsten and Molybdenum Group Co., Ltd attended the meeting. The main topics of the meeting were: analyzing the situation of supply and demand in the tungsten market, studying and strengthening industry self-discipline, establishing an information exchange and communication mechanism, and giving full play to the industry coordination role of industry associations and the industry leading role of large backbone enterprises. We should promote the supply-side structural reform of the tungsten industry, eliminate overcapacity at the middle and low ends, boost market confidence, and enhance the overall competitiveness of the industry, so as to jointly maintain the healthy and stable operation of the tungsten market and promote the high-quality development of the tungsten industry.

The tungsten market price rebounded slightly in the first quarter of this year, and the international tungsten market price remained stable, but after April, it was adversely affected by the lack of confidence in the tungsten market, hidden worries about market expectations, and the disturbance of overcapacity, which triggered adverse reactions in the market. The tungsten market supply and demand is weak, the domestic market occasionally deviates from the market mainstream price cash transaction, the price falls slightly, the industry economic benefit drops. According to the China Tungsten Association, 123 major tungsten enterprises achieved a year-on-year increase of 0.16% in the first quarter, a quarter-on-quarter decline of 10.78%, an increase of 31.9 percentage points lower than that of the same period last year. Realized profits and taxes fell 17.32 percent from a year earlier, an increase of 78.64 percentage points from the same period last year, and realized profits fell 46.18 percent from a year earlier. Among them: the profit of tungsten mining enterprises decreased by 34.79% compared with the same period last year, the profit of tungsten smelting enterprises decreased by 35.67%, the profit of cemented carbide enterprises decreased by 13.93%, and the profit of tungsten enterprises decreased by 58.88% compared with the same period last year. The profit of tungsten and iron enterprises fell 82.26% compared with the same period last year. According to the China Tungsten Association, the loss area of enterprises in the statistics is 35.00%, which is 14.27 percentage points larger than that in the fourth quarter of 2018 and 20.27 percentage points larger than that in 2018. Among them, the loss surface of mining enterprises is 39.39%, that of smelting enterprises is 42.31%, that of cemented carbide enterprises is 27.08%, and that of tungsten enterprises is 36.36%. The delegates held serious discussions on hot issues such as the trend of supply and demand in the tungsten market, the economic situation of the industry, and the high-quality development of the tungsten industry.

The meeting agreed that the output of foreign tungsten concentrate continues to remain stable, the inventory is still low, affected by the decline in tungsten resource grade, rising mining costs, increased pressure on safety and environmental protection, and so on, the situation of tight supply of domestic tungsten raw materials has not changed. The fundamentals of the long-term improvement of China's economy are more stable, and the number of stable factors in economic operation is also increasing. With the implementation and landing of a series of policies represented by "six stability", the market financing environment has improved, and the capital market has warmed up. Consumer confidence continued to pick up. After falling for three quarters, the confidence index of non-ferrous metal enterprises warmed up in the first quarter of this year. The index of new orders, production and purchase of raw materials was higher than the critical value, and the non-ferrous metal market warmed up and confidence improved. The sustained and steady growth of high-tech manufacturing and equipment manufacturing, infrastructure construction and private investment will continue to stimulate the demand of the tungsten market, and the fundamentals of the tungsten market have not changed much.

The meeting unanimously agreed that the tungsten enterprises (groups) attending the meeting will jointly maintain the supply order of tungsten raw materials market, and the output of tungsten concentrate will be reduced by not less than 10 percent this year. According to the statistics of the China tungsten association, the annual output of tungsten concentrate produced by the participating enterprises (groups) accounts for 86% of the statistical output of the china tungsten association, and the major tungsten enterprises (groups) in China are the first to reduce production, which will play a positive role in improving the contradiction between supply and demand in the current tungsten market. At the same time, the China Tungsten Association has proposed to the national tungsten mining enterprises to strictly implement the total quantity control index of tungsten concentrate mining issued by the state, control production capacity, reduce output, and rationally sell, so as to jointly maintain the order of supply of tungsten raw materials in the market. We will promote supply-side structural reform in the tungsten industry.

The meeting agreed that the follow-up disposal of tungsten products involved in the Pan-Asian Nonferrous Metals Exchange had a negative impact on the expectations of the tungsten market, but in view of the complexity of the subsequent disposal of tungsten products involved in the case, the volume of China's tungsten market, and the countermeasures taken at the same time, Its impact on the tungsten market is limited. The China Tungsten Association will give full play to its role as a bridge, actively do a good job in the prevention and control of market risks, and maintain the healthy and stable operation of the industry and the security of national strategic resources.

The meeting unanimously called for strengthening self-discipline in the industry, promoting the construction of social integrity, and creating a fair competition environment in the market. Upstream and downstream enterprises should unite sincerely, strengthen cooperation, rationally analyze and scientifically study and judge market trends, boost market confidence, and jointly resist vicious competition in the industry and malicious speculation contrary to the market. We will promote the rational return of the overall price of tungsten products upstream and downstream, promote the harmonious, honest and win-win development of the tungsten industry, drive innovation to make up for the shortcomings of industrial development, strive to resolve excess capacity, reduce costs and increase efficiency, and speed up the transformation and upgrading of the tungsten industry. To promote the high quality development of tungsten industry in China.