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"Overdraft" sequelae

At the end of the first quarter, the overall tungsten market set off a wave of purchasing frenzy against the background of expected increase in consumer demand and rising prices of most raw materials. Many terminal alloy dealers snapped up alloy products, and the inventory scale increased by more than one month, while alloy production Companies are also increasing the purchase and stocking of powder raw materials under the condition of a substantial increase in order demand. Many alloy companies have extended their traditional inventory for one and a half months to more than two months. Even in early April, they had enough supplies for July. . Powder companies are optimistic about driving the APT market again, and the tungsten ore market has also risen to close to the 100,000/ton mark. However, the momentum of economic recovery seems to suddenly turn cold after mid-April. Just as everyone predicted a growth rate of 8-9% in China¡¯s economy in the early days, the two sessions set a growth rate of 6%. The enthusiasm brake was suddenly overwhelmed. The negative impact of imported inflation on the economy has expanded, and the government has to make some responses to curb inflation. Therefore, the economic growth rate in the second quarter will slow down, which will indirectly affect the development of the manufacturing industry, and the consumer demand for alloy tools will slow down. . The slowdown in demand growth for alloys will also affect the overall market¡¯s high expectations. The overheated development in the first quarter made alloy companies and the entire raw material market blindly look high. After entering a stable period, they will need to slow down and downshift to operate normally, otherwise it will be too rushed. The brakes will inevitably cause the market to stall. The slowdown or postponement of stocking demand at the end of May and early June will be a signal of change. The sequelae of "overdraft demand" will take some time to calm down.

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