Below is an update, from Chairman Oliver Kleinhempel, posted on...

Below is an update, from Chairman Oliver Kleinhempel, posted on the EQ Resources linked In site, following Mondays announcement from Beijing

Its very interesting to note that China, in 2024, doubled their imports of tungsten (from Russia/Kazakhstan etc ) and have been stockpiling tungsten - it almost suggests they have been preparing for this move for quite some time, and, as Ollie says, this is just the beginning


CHINA EXPANDS CRITICAL MINERALS (TUNGSTEN) EXPORT CONTROL
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Are we on level playing field with China? Obviously not! And it shouldn’t be to anybody’s surprise, as current supply imbalances (primarily for critical minerals) are a result of the developments of the past two decades. Is it solely communist style planning, for China to secure critical raw materials all around the globe? Probably not, as communism is often defined as market-inefficient, and the fast-track industrialization in China – at least until the Covid years – was fueled by rather the opposite.
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I have recently traveled the main tungsten production hubs in Xiamen and Ganzhou (rightfully named the ‘tungsten capital of the world’). On the ground, the sector is fueled by a mix of brave entrepreneurship, drive for innovation, and certainly a Government that pulls all available strings to ensure the critical minerals sector is financially supported and supply-chain leverage (even on a global scale) remains in place.
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As retaliation to the recent US tariffs on China, Beijing yesterday announced another round of trade restrictions in the critical minerals space. Export control measures are imposed on a range of minerals and metal products. Tungsten and its intermediate products are on the list. New rules, with immediate effect!
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To the question ‘whether this move could have been foreseen?’. To some degree – at least it came to no surprise to industry experts. It was expected that Beijing will play another card around critical minerals export, as trade tensions with the US and its allies escalate.
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Stunning, according to Chinese customs data, tungsten players in China imported twice the amount of tungsten in 2024 as compared to the average import volumes of the five years prior. Stockpiling in China led to high prices, where Western tungsten was cheaper to import (despite a double digit import duty) than buying domestically in an overheated market. China now sitting on an additional 12-month stockpile of tungsten the West didn’t want to absorb.
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The West is still struggling to gain ground in this race, as policies and industrial action are still largely disconnected! I believe the export control measures are just the beginning, they continue to disrupt supply chains and likely have a price impact on tungsten as well – no crystal ball needed, just look at antimony post Chinese export control measures, going 4-fold in the past 12 months.
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We must recognize that Chinese players have driven innovation in the sector, developed a fully integrated domestic supply chain, and positioned themselves as globally respected industry participants! It’s time for the West to act!