In 2005, the price of tungsten concentrate soared by 300% in four months. Zhu Xiusheng, deputy secretary-general of China Tungsten Industry Association, believes that in the short term, due to the cancellation of the export tax rebate of tungsten concentrate and tungsten waste 13% in China last year, the downstream tungsten smelting and processing enterprises have been seriously redundant in recent years, and some tungsten intermediate traders are interested in raising prices. But in the long run, the shortage of supply and demand and the exhaustion of resources are fundamental contradictions. With the worldwide economic recovery, the industries of various countries, especially the machinery industries such as steel, automobiles and electronics, are developing rapidly, and the demand for tungsten is increasing. In recent years, the comprehensive management of China's tungsten industry has been increasing, and the black tungsten resources have gradually decreased, further aggravating the shortage of supply and demand.

However, on the other hand, risks are also accumulating. It is generally predicted in the industry that the domestic market consumption is strong, and the price of tungsten at home and abroad will continue to rise steadily in 2006, but the magnitude will not be too great. Due to the further development of tungsten resources in China, China Tungsten Industry Association predicts that domestic output will increase by tens of thousands of tons this year. On the other hand, due to the large amount of tungsten and limited market, the demand for tungsten will not increase significantly this year.

Therefore, it is possible to follow the momentum of last year and increase slightly, and the magnitude should not be great. It is likely to be a moderate increase, during which there will be a small technical correction.