China's strict control of tungsten exports led to a surge in prices, production accounted for 80% of the world

       A recent surge in commodity prices has raised concerns, especially of the global output of this metal, 80% from china. The price of tungsten, one of the most critical materials for the economy and defence of the western world, is rising at a faster rate than any major commodity, Bloomberg said.

In the past two months, tungsten prices have risen by more than 50% in the last months, amid growing concerns about China's supply cuts, Bloomberg News reported on its website. About 80% of the global output of this metal comes from china. China is banning polluting mines and implementing production targets to limit the supply of tungsten to around 91 thousand and 300 tons a year. In addition to China's measures to limit production, Japan, Holland and the United States overseas enterprises demand recovery is obvious, since the beginning of the year, export volume increased, the supply of tungsten prices usher in "soaring"".

The metal market research company said the European tungsten price rose by 52% since the beginning of July. That's more than all 22 of the main commodities in the Bloomberg index.

The European Union ranks tungsten as one of the key commodities, and the Institute of British geological survey lists it as the list of supply risk lists for materials needed to sustain the UK's economy and lifestyle.

Tungsten was first discovered in 1783. The light gray or white metal can be cast into alloy with steel to form a stable material at high temperature. It is the highest melting point metal on earth and has a melting point of more than 3400 degrees celsius.

Tungsten belongs to non-ferrous metals, hard metal, rare metal, properties of metal products such as the strategy, according to the data show that China tungsten broadly distributed in the China Nanling mountains on both sides of the eastern Guangdong coast, especially in the south of Jiangxi was the most, reserves accounted for more than 1/2 of the world. And China exports more than 80% of the world's tungsten raw materials.

This mineral is listed as a strategic metal, mainly because it has a very important role, is widely used in modern communication technology, electronic computers, aerospace, medical and health development, photographic materials, optoelectronic materials, energy materials and catalyst materials, many weapons and equipment also need to use a lot of the raw materials, high density tungsten means it is also used in missiles, to help them through the defense measures.

Most of the tungsten consumed is in the automotive industry, with about 25% of the supply being used primarily for cutting tools and machine tools. Used as a tungsten electrode in an integrated circuit, connected to the transistor.

Tungsten is China's national strategic resource, limited by exploitation quotas, and its output is limited to about 91 thousand and 300 tons per year. However, as often associated with molybdenum ore mining, in previous years exceeded the quota of mining once reached 50%.

Chinese ministry in June 6th issued a issued in 2017 on the tungsten production quota of total control notice, said production enterprises shall comply with the production index, the production index, super index of enterprises, to immediately ordered to suspend production. Indicators should not be awarded to enterprises with environmental pollution or hidden dangers.

"The government wants to take control," said Mark Seden, senior manager of Agus consulting. Whether this will continue until next year is harder to predict."

Customs data show that in 2017 1-7 months, Chinese total exports of tungsten products 17 thousand and 500 tons, an increase of 45.6% in July, still maintain 3000 tons of single month high, which from Japan, Holland and the United States exports the largest increase amount of tungsten concentrate.

Downstream demand recovery is, on the one hand, this year, environmental inspectors unprecedented strength, mine production significantly, or will lead to raw material procurement difficulties, and even global supply shortages.

Huatai Securities pointed out that the domestic resource distribution in Hunan, Jiangxi tungsten concentrate and Fujian provinces, and control of several large state-owned enterprises for resources is strengthening, tungsten concentrate supply under oligopoly end will face more stringent regulation, it is difficult to restore the operating rate. At the same time, due to the low price of 15-16 years, the construction of new exploration mines is blocked and new production capacity is limited.

CITIC Securities is expected to Chinese environmental inspectors to strengthen, will lead to the production of tungsten concentrate is far less than the growth rate of consumption and export growth, the market inventory is further reduced, in 2017 the annual market is expected to maintain a state of shortage. CITIC Securities in 2017 to maintain the average price of tungsten ore 88 thousand yuan / ton judgment.

In September 13th, China Tungsten Industry Association published the article said, there is a certain gap between the overall price level of tungsten and reasonable price, has yet to return to the level of 2014, still deviates from the value of resources.

The article pointed out that the first half of 2017, the domestic tungsten ore prices continue to stabilize recovery, the second half of rapid rise, back to the national average mining cost line near. The output of tungsten concentrates abroad is stable, while the supply of stock remains tight. To rationally consider the price of tungsten concentrates, one is to control the total amount. Two is to rational sales. To prevent irrational sales arbitrage, to prevent price ups and downs. Three is to prevent and control risks. To prevent malicious speculation in the market, rainy day, pay close attention to and guard against market uncertainty brought about by market risks.

Bloomberg reported that this year is a crazy year for many other metals with less trading volume. The price of light rare earths such as neodymium and praseodymium is also rising because of China's efforts to rectify the mining industry. The price of batteries such as cobalt and vanadium has also surged, and prices of precious metals such as ruthenium have risen.

Wall Street informative analysis, said this year, the same "benefit" in environmental supervision, supply trends showed a variety of small metals, as well as rare earth. With the development of electric vehicles and new energy sources, the price of praseodymium and neodymium oxide has almost doubled this year as a new energy vehicle;