THE PRICE COMPOSITION & RISING FACTORS OF TUGNSTEN CHINA, 2017

PART III OF X

Cost & Price Trend of Tungsten Concentrate Analyzed from a Macro Perspective

August 28, 2017

Pricing Power, Tungsten Concentrate Price as an International Strategic Containment Means

The industry often says that semiconductors are the food of contemporary industry, rare earth is the MSG of contemporary industry, and cemented carbide, as the back-end product of main tungsten products, is known as the tooth of contemporary industry! Therefore, we can see the importance of tungsten products in contemporary industry, or we can say that tungsten products are an indispensable raw material for a country's contemporary industry to realize the four modernizations and move towards high-end.

As a strategic material, China with the world's largest reserves of tungsten products has absolute advantages in tungsten resources. As tungsten products are closely related to emerging industries and strategic industries such as military industry, nuclear energy, new energy and electronic information industry, China's tungsten resources with reserves advantages and basic smelting and industrial technology should be similar to molybdenum rare earth and other resources should reflect their strategic position and role in China's international political and economic strategy.

China's High Price for Economic Take-off

In terms of inter state relations, international strategic theory and time have proved that in order to protect their strategic advantageous position and economic development, developed countries/city guarding countries often adopt economic, political and even military means to delay the development pace of developing countries and strive for the greatest political and economic interests for themselves.

Distribution Chart of World Tungsten Reserves, China, Canada, Russia, US, Bolivia, and other countries

Proportion of World Tungsten Ore Output in 2007

China has been most affected in the process of reform and opening up in the past 30 years. Due to the long-term implementation of the diplomatic and military development strategy established by Deng Xiaoping and other leaders of the older generation, the diplomatic and military development lags behind the social and economic development. Therefore, the political and military development of the United States and other western countries is relatively small, and the economic strategic offensive reasonably launched by the old western capitalist countries has a great impact.

It's empty to say so, but people in the non-ferrous metals industry only need to look back at the prices of main Brown metals and non-ferrous metals raw materials in the past 30 years, especially the prices of raw materials controlled by the west, to know how much China has paid for the western resource price strategy: copper, aluminum, lead, zinc, tin, nickel, iron etc. The prices have increased several times or even ten times one after another. For the sake of oil resources and prices, the West has even launched the Middle East War and the war on terrorism that continues to this day.

Considering that our refueling price has risen from more than RMB1 Yuan to RMB6-7 Yuan a liter, it is very clear what we have paid for economic development. It is in this situation that we have successfully completed the "Railway Infrastructure “鐵公基”" (railway, highway and infrastructure) required by the modernization of most countries. Although we have paid a lot of money for this, fortunately, we have basically completed the layout at a lower price.

......

Read/download the full report: