THE PRICE COMPOSITION & RISING FACTORS OF TUGNSTEN CHINA, 2017

PART I OF X

Cost Composition of Tungsten Concentrate from Micro Factors

August 23, 2017

This article was written in 2017 and published on the website and WeChat of China Tungsten Online from August 23 to early September 2017. Therefore, many views should be considered comprehensively according to the situation at that time, but the author's analysis of the cost composition of tungsten products and the analysis logic of price influencing factors are of great reference value.

Tungsten Ore/ Wolframite

Tungsten resource is one of the few advantageous resources in China. China's tungsten resource reserves account for 70% of the world's proven tungsten resource reserves, ranking the first in the world. According to the average calculation over the years, China's tungsten products, except for those prohibited by China’s Central Government, including Tungsten Oxide, Powder, Metal, Alloy and Carbides and supply account for about 80% of the world's annual output. However, for a long time, the price of China's tungsten resources/products at home and abroad has been subject to the influence of factors such as market, industrial policy and international trade rules for a long time, which makes China's non renewable rare resources sell "cabbage price", even lower than the due cost price.

Mine Roadway for Underground Tungsten Mining

This is not sensational, because the prices of various tungsten products have increased significantly recently, and the market fluctuates greatly. Many friends and customers at home and abroad have inquired in various forms, while the number of inquiries and visits of China Tungsten online WeChat and China Tungsten online news network have reached a record high, Therefore, I hope to make a simple analysis of the cost and price of tungsten concentrate with my simple experience and limited knowledge, and analyze the future price trend from a strategic perspective.

Tungsten Mines under Developing in Mountainous Areas of Jiangxi Province, China

1. Price Composition of Tungsten Products

The cost and price of tungsten concentrate are the basis and source of the cost and price of all tungsten products. It has a decisive impact on the cost and price of tungsten metal products and tungsten alloy products smelted and processed based on tungsten concentrate. Therefore, any change in the cost and price of tungsten concentrate will attract the attention of relevant market people, Of course, this is only the concept of cost and price in the micro market.

The micro cost and profit composition modes of tungsten product smelters are as follows:

A (tungsten concentrate price) + B (processing cost) + C (tax) + D (profit) = S (tungsten product sales revenue.)

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