HK Stock Market Move | Jiaxin International Resources (03858) rose nearly 7% in early trading. US military ammunition inventory is under pressure, and military demand has intensified the tight situation of tungsten supply.

In the early trading session, JIAXIN INTL RES (03858) rose nearly 7%, and as of the time of writing, it had risen by 5.91% to 81.55 Hong Kong dollars, with a trading volume of 92.4496 million Hong Kong dollars. On the news front, with the outbreak of conflicts in the Middle East, the high-end ammunition stocks of the United States and its allies are being consumed at an unprecedented pace, and the metal tungsten has rapidly become a core strategic resource in the global military and technology industry chain. This has also forced the United States to urgently seek this strategic material globally. The Center for Strategic and International Studies (CSIS), a US think tank, warned last month that the current high-intensity military consumption could lead to a long recovery period for some key ammunition stocks of the US military, which also means that the demand for critical raw materials such as tungsten will remain high in the future. Guotai Haitong released a research report stating that the release of previous inventory, volume of waste tungsten, import supplements, and export restrictions have led to a continuous decline in tungsten concentrate and APT prices. The logic of shrinking ore supply is still in place, and with smelting production cuts, inventory clearance, and downstream low inventory replenishment, the price of tungsten is expected to stabilize in June-July. It is recommended to focus on targets with a high proportion of self-owned mines in the resource sector and a layout of high-end deep processing products.