Yesterday, Jiangxi Rare Earth And Rare Metals Tungsten Group Corporation has made its announcement that the company is going to make tungsten concentrate reservation, which will benefit the market directly. However, after experiencing many announcements in vain, many firm hold cautious attitude nowadays. Regarding this round of reservation, our opinion is that the reservation can boost the confidence. Yet, the main focus of the reservation is still its own resource observing key words. The producer will gather about Yuan 500 million in the first period by restricting the production quantity and sales. Yet, the later period will still be a question. Meanwhile, the instability of the market still exists, which will be the opposite force of the reservation.

　　The international market is having its regular summer break and there are few buying interests. Mainstream tungsten products have little transaction and the price of ferrotungsten is sliding. Some global firms can hardly handle the situation, other participants hesitates because of the anxiety. After the announcement, many oversea participants express that the influence is limited.

　　The domestic tungsten market is still depressed. The running good is still low grade white tungsten concentrate, but high grade minerals can hardly make its step due to low price from downstream market. The high grade minerals are usually circulating inside the company or purchased by long-term contracts. Though few mines are operating, but the supply is plenty. There are few spot goods exchange at the moment, as foreign and scrap materials are also affecting the concentrate application. Most mines are cautious hearing the announcement.

　　The APT market is still weak, and the bottom line is lowering and lowering. Smelters of giants are adjusting the operation methods, doing their best to save the cost. APT makes no profit is a normal. Some producers are supported by downstream supplies; others rely on advantage of cost control. The present APT assessment is about Yuan 103000-105000/st, and lower grade assessment is at Yuan 101000-103000/st with cost advantage.

　　The price of tungsten powder is still not stable; the main reason is lack of support for confidence. Major producers are signing long-term contracts with fixed quantity every month. Small and medium companies are going different directions. As the quality of tungsten powder has no advantage, the only variable is price. The range of price is wide and mainstream tungsten carbide powder assessment is at Yuan 170-175/kg.

　　Tomorrow the guiding price will be released, which may stabilize the market. Though the market has gained some support from reservation, however, our opinion is still conservative.