According to the China Nonferrous Metals Industry Association joint economic daily by the Industrial Prosperity Index Research Center and the National Bureau of Statistics released by the China Economic Monitoring Center in the non-ferrous metal industry boom index report shows that in December 2016, the non-ferrous metal industry boom index 31.1, surged 1.3 points in November, breaking through the "cold" area along the rise to the "normal" area; in the non-ferrous metals industry index for the first 86.3, surged 1.7 points in November; consistent index of 79.7, compared with 11 Month rose slightly 1.1 points. Preliminary judgment, the non-ferrous metal industry boom index rebounded to the "normal" area, the industry rebounded significantly, but because the development environment did not appear fundamentally improved, the next period of time, does not rule out the index in the "cold" range of the possibility of shock.

From China's tungsten and molybdenum industry operation and development environment analysis point of view, with the non-ferrous metal industry boom monthly trend of the overall trend is consistent, mainly in:

Tungsten and molybdenum production decreased slightly, supply shrinkage

According to the National Bureau of Statistics data, 2016 from January to November domestic tungsten concentrate production was 124,500 tons, down 4.6%; the same period molybdenum concentrate production was 266,600 tons, down 5.2%. As the price of tungsten and molybdenum products is still at a low level, some small and medium-sized mines have not yet achieved production.

Investment needs to pick up

2016 years 1 to 11 months, China's tungsten and molybdenum industry to complete the investment of 7.69 billion yuan, down 8.3%; tungsten and molybdenum smelting completed investment 4.57 billion yuan, down 17.9%. As the industry has overcapacity, product prices in recent years, weak, tungsten and molybdenum industry investment is still in decline. However, compared with the previous period, industry investment has been narrowed.

Tungsten and molybdenum prices bottomed out

The fourth quarter of 2016, the domestic market price of molybdenum concentrate 1006 yuan / ton, up 11.2% over the previous quarter, compared with the fourth quarter of 2015 rose 42.9%. Over the same period, the domestic market tungsten concentrate (W65 black tungsten) average price of 71256 yuan, compared with the fourth quarter of 2015 rose 29%. Market recovery and supply shrinkage, downstream demand recovery has a greater relationship. Data show that with the domestic stainless steel and some special steel production growth, 2016 domestic molybdenum product demand year on year increase is estimated to reach about 21%.

Tungsten and molybdenum enterprises to improve business, profit rise

With the tungsten and molybdenum product prices and product agencies to optimize the optimization of domestic tungsten and molybdenum enterprises to improve profits rebound. 2016 years 1 ~ 11 months tungsten molybdenum mining enterprises total profit of about 1 billion yuan, an increase of 27.7%; the same period tungsten and molybdenum smelting enterprises total profit of about 4.73 billion yuan, an increase of 15.7%.

Since 2016, China's tungsten and molybdenum industry, the main features are: industry investment fell narrowed; downstream industry to pick up, domestic and international market demand for tungsten and molybdenum products rebound; tungsten molybdenum market bottomed out, business efficiency has improved. 2017 will be the implementation of the "thirteen five" planning an important year and to promote the supply side of the structural reform of the deepening of the year, fixed asset investment will continue to be one of the main driving force of economic growth. Therefore, the demand for tungsten and molybdenum products will continue to grow, tungsten and molybdenum market is expected to oscillation picked up.