On May 9th, the State Council executive meeting reviewed and approved the "Draft Implementation Regulations of the Mineral Resources Law of the People's Republic of China." The meeting emphasized the need to strengthen the management of the entire mineral resource chain in accordance with the law, scientifically determine the list of strategic mineral resources, improve resource reserves and emergency response systems, and comprehensively enhance the level of mineral resource security.
This policy signal further reinforces expectations regarding the strategic value of tungsten, indicating that tungsten price formation is not solely determined by market supply and demand, but may be influenced by policy regulation and administrative factors such as stockpiling. Historical experience shows that stockpiling operations are typically not implemented when prices are high, but rather when the market is relatively sluggish and prices are in the low to medium range, to achieve multiple objectives such as stabilizing supply, regulating the market, and reserving strategic resources.
China Tungsten Online believes that the policy emphasis on strategic resource security provides positive expectations for the medium- and long-term development of the tungsten market, but the pace of recovery in actual demand will remain a key variable determining tungsten price trends in the short term.
