CITIC SEC: The tightening of tungsten mining Indicators is expected to push the tungsten price upward.

CITIC SEC Research Reports indicate that on April 21, 2025, the Ministry of Natural Resources issued the first batch of total control Indicators for tungsten mining for 2025, set at 0.058 million tons, which is a decrease of 4,000 tons compared to the first batch of Indicators in 2024, reflecting a year-on-year decline of 6.5%, with the decline rate increasing by 4.9 percentage points year-on-year. Due to constraints from mining Indicators, eco-friendly regulations, declining ore grades, and the difficulty of bringing new projects into production in the short term, we believe that the short-term growth in the tungsten industry is limited. Coupled with rapid growth in downstream demand driven by equipment renewal policies and photovoltaic tungsten wire, the supply-demand gap may support an upward trend in the tungsten price center. Against the backdrop of export control policies, the tungsten industry is expected to transform and upgrade, further enhancing the strategic attributes of tungsten resources.