JIAXIN INTL RES Shares Surge Nearly 7% in Early Trading as Military Demand Intensifies Tungsten Supply Constraints

Stock News05-27

JIAXIN INTL RES (03858) rose nearly 7% in early trading. As of press time, the stock was up 5.91% to HKD 81.55, with a turnover of HKD 92.45 million.

The surge follows reports that the outbreak of conflict in the Middle East is depleting high-end ammunition stockpiles of the United States and its allies at an unprecedented rate. Tungsten has rapidly become a core strategic resource in the global military-industrial and technology supply chains, compelling the U.S. to urgently seek this strategic material worldwide.

Last month, the Center for Strategic and International Studies (CSIS) warned that the current high-intensity military consumption could lead to replenishment cycles for some critical U.S. ammunition stocks lasting several years. This implies that demand for key raw materials like tungsten is likely to remain elevated for an extended period.

Analysts note that previous inventory releases, increased scrap tungsten supply, import supplements, and受阻 exports had driven down prices for tungsten concentrate and ammonium paratungstate (APT). However, the underlying logic of reduced primary ore supply remains. With smelting reductions, inventory drawdowns, and the initiation of restocking by downstream users with low inventories, tungsten prices are expected to stabilize between June and July. It is recommended to focus on companies with high proportions of owned mining resources and those positioned in mid-to-high-end deep-processing products.

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