Molybdenum News Center

According to the report by the non-ferrous metal industry sentiment index China Nonferrous Metals Industry Association Economic Times climate index by industry research centers and the National Bureau of Statistics China Economic Monitoring Center released show that from January to June 2014, the monthly non-ferrous metal industry sentiment index six consecutive months below 50, in the "slants cold" zone, where the first three months continued to decline from 49.1 to 46.9, indicating the boom all the way down; after three months rising to 49.7 from 48.0, indicating boom gradually picked up.

 Overall, the first half of this year, a weak non-ferrous metals industry as a whole, and in the second quarter showing a gradual stabilization of momentum.

 

The first half of 2014, China's tungsten and molybdenum industry and non-ferrous metal industries run trend broadly consistent with the trend of climate index, the overall operation is still weak, mainly as follows:

 

First, the supply of steady growth, slow progress in industrial restructuring. In the first half, China's tungsten concentrate and molybdenum concentrate production have achieved an increase of about 2%, which is the main support is basically stable and continuous improvement of new mines and mine production of byproduct production of large mining enterprises make up the old mines and low-grade dropped mine production. However, 1 to May, China's fixed asset investment in tungsten and molybdenum ores and tungsten, molybdenum smelting investment in fixed assets were 20 percent and 70 percent with relatively large increase, tungsten and molybdenum industry structure is still difficult to high-quality, high-performance, deep processing of high value-added products effective extension.

 

Second, weak domestic demand growth, the stock market continue to weigh on market sentiment. In the first half, the steel industry as a whole by the impact of operational difficulties, China's molybdenum market consumption levels remained the same period last year, failed to achieve growth; tungsten market consumption increased slightly to about 3%, mainly on increasing support from carbide production. Meanwhile, the markets after the financial crisis accumulated large stocks has not been effectively digested in demand remains stable or slightly lower growth in the context of the stock market was in a serious mood to suppress the demand and supply sides, stronger bargaining power of end users, the market sluggish performance. In the first half, China's tungsten concentrate and molybdenum concentrate price by 10% and 14%, respectively, year on year decline.

 

Third, the strong performance of the international market, China's export volume of tungsten and molybdenum recovery growth. The performance of the domestic market is very different in the first half, subject to market demand and spot market to pick up significantly impact supply the international market price of molybdenum oxide were achieved APT and 5.6% and 5.3% year on year rise, but were higher than the national market price. This support, 1 to May, exports of tungsten and molybdenum exports were achieved 7% and 40% year on year growth, but in the past two years, exports continued to decline, based on the realization, stimulating effect on the domestic market minimal.

 

Fourth, the decline in business efficiency, effectiveness structural differences are significant. This year, the majority of our tungsten and molybdenum listed companies or significant decline in net profit or loss. 1 to May, China's tungsten and molybdenum ores net profit fell 17 percent, significantly changing the concentration of the profits from mining enterprises trend; while, tungsten and molybdenum smelting net profit rose 43 percent, showing the effectiveness of the structural differences are significant.

 

In short, the main features in the first half of tungsten and molybdenum industry is running: a stable supply of insufficient domestic demand, high inventories and exports are not obvious, slow adjustment of product structure, a significant decline in corporate profitability. These features are a continuation in the second half of this year, China's tungsten and molybdenum industry will be a slight decrease in the overall situation remained stable. However, once the final ruling of the World Trade Organization in the United States, European Union, Japan v. China rare earths, tungsten, molybdenum export management measures related case against, our tungsten and molybdenum industry will likely be two not conducive to the healthy and stable development of industrial change: first, the low-end production of tungsten and molybdenum heat, because these products are no longer tariffs, quota-free. Currently, the country has many foreign companies began to receive customer orders for these products. Second, deep R & D and export processing enterprises to withstand the pressure of new production. Abolish export tariffs will be reduced to some extent, foreign R & D costs, accelerate foreign R & D process, both on the domestic R & D incentives also for the pressure, R & D is lagging behind will cause the application lag, is not conducive to the kinds of applications to develop high-tech, high added the value of the product, is not conducive to producing countries rather than our power to get rid of the situation. To this end, the proposed introduction of the relevant government departments to improve the resource tax, raise environmental standards, the establishment of mineral material flow downstream producers retroactive mechanism, to develop deep processing products and other relevant policies in order to promote China's tungsten and molybdenum industry to gradually optimize the industrial structure as soon as possible, and strive to achieve industrial upgrading and improving quality and efficiency. 

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