Listed Tungsten Companies Warn of Rapid Stock Price Surge Risks

On March 2nd, several listed tungsten companies issued announcements regarding abnormal stock price fluctuations, warning of risks associated with the recent rapid rise in stock prices and reminding investors to be aware of secondary market trading risks. Chinatungsten online has compiled and summarized the main risks as follows:

(1) Macroeconomic Risks. Tungsten products are widely used in basic industrial sectors such as machinery processing, aerospace, national defense, electronics, and transportation. Cyclical fluctuations in the macroeconomy will directly affect the overall demand of downstream manufacturing industries, which in turn will be transmitted to the market demand and price performance of upstream tungsten products.

(2) Industry Policy Adjustment Risks. National regulation of the tungsten industry extends to all aspects, including mining, smelting, operation, and export. Adjustments to relevant industrial policies will directly impact the production, operation, and business development of enterprises.

(3) Raw Material Price and Supply Fluctuation Risks. Enterprises that cannot meet their production needs through self-sufficiency in raw materials face challenges related to fluctuations in raw material purchase prices and supply chain stability.

(4) Technological Iteration and Substitute Risks. For example, in the photovoltaic diamond wire busbar sector, there are opportunities for the penetration of tungsten wire into high-carbon steel wire, as well as risks associated with reverse osmosis. (5) Exchange Rate Fluctuation Risk. Fluctuations in the RMB exchange rate will directly affect the exchange gains and losses and overall performance of enterprises with export businesses.

(6) Credit and Performance Risk. Credit lines and payment terms are granted to some customers, creating the possibility of bad debts on accounts receivable. Defaults by suppliers or customers, such as failure to deliver or pick up goods as agreed, may trigger a chain reaction, affecting production continuity and performance stability.

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