HK Stock Market Move | Jiaxin International Resources (03858) rose more than 6% as tungsten prices showed signs of bottoming out and rebounding. Emerging demand and strategic attributes continue to strengthen.

JIAXIN INTL RES (03858) rose more than 6%, as of the final announcement, the increase was 6.42%, reaching 93.65 Hong Kong dollars, with a turnover of 2.34 billion Hong Kong dollars. On the news front, according to Tungsten Online, in recent trading days, tungsten prices have overall shown a bottoming rebound trend. The tungsten market report released on June 3rd shows that the price of 65% black tungsten concentrate is 45,000 yuan/ton, and the price of ammonium paratungstate (APT) is 730,000 yuan/ton. China Post Securities pointed out that since May, domestic APT companies have carried out maintenance, production reduction, and other measures to effectively digest previous inventories. With the gradual stabilization of raw material prices and the increased willingness of smelters to support prices, downstream demand has gradually followed suit, and market trading activity has seen a slight increase. In addition, the landing of large factory long-term pricing has provided support, causing the downward trend of APT prices to halt, gradually entering a bottoming phase. GF Securities believes that in the short term, factors suppressing tungsten prices are gradually easing, while emerging demand and the strategic nature of tungsten continue to strengthen. First, the easing of tensions in the Middle East has alleviated stagflation fears, and domestic holding traders have shown a reluctance to sell. Second, accelerated demand from emerging industries such as AI is expected, with the market predicting an acceleration in demand for AI PCB micro-drilling driven by the Vera Rubin architecture, and the booming storage industry driving a shortage in demand for tungsten hexafluoride. In the long term, the global shortage in tungsten supply and demand remains unchanged, with the value of leading global tungsten companies continuing to be highlighted.