Recently, the market is in a negative situation, and the price of tungsten products has fallen sharply. After the sustained weakening of the previous two weeks, the price has fallen below the support level of the previous forecast, which was mentioned in previous articles. As a result of the market to buy up do not buy down mentality, enterprises are basically in the state of wait-and-see, tungsten market inquiries are scarce, holding miners are also resistant to low-price shipments; The operating rate of powder enterprises is at a low level, and the enquiries for raw materials are reduced.

From the analysis of all the negative factors, we can see that the reasons for the price decline are mainly divided into three aspects: first, supply exceeds demand, second, low added value of products, and third, peripheral market is negative.

The first factor in the decline of tungsten products is the oversupply in the market. After the supply side, first of all, environmental supervision, part of the early production of mines and smelters in succession after rehabilitation, the upstream production increased dramatically, and second, the tungsten industry of industrial concentration is low, although has experienced the market reshuffle prices bottomed out in early 2016, improve the industry concentration, but overall, the concentration degree of the market remains to be improved, it needs to have the strength enterprise to get through upstream and downstream industry chain link, are not specific to this now. On the demand side, influenced by the traditional low season in China and the summer break in Europe, the demand is at a weak level. We continue to make detailed analysis of the reasons for the weak market demand, which are the sluggish growth of the whole terminal consumption sector, including the slowing growth of infrastructure, sluggish sales in the automobile industry, the lack of good performance in the application fields of petrochemical industry, etc., which leads to the insufficient consumption demand for tungsten products in China. At present, the overall market is in the situation of oversupply, which is the root cause of the general decline in current prices.

The second major factor affecting the lack of upward momentum in the price of tungsten products is low added value, which is not obvious in the short term, but in the long term is an important factor affecting the market demand and profits of enterprises. Cemented carbide production technology in China and abroad have a certain gap, still we don't have any advantages in the field of high-end manufacturing, such as space equipment cutting tool in foreign production of the products, when the huge space for the future development space is known to all, but the enterprise products have no way to get involved, can only stand outside the door of industry rapid development. It can be said that without advanced technology, enterprises can not seize the demand to occupy the market, can not directly create profits.

The final factor is the recent negative impact of peripheral markets, such as the sino-us trade war and so on. The market is expected to improve to some extent after the summer.

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