A group of APT producers issued a proposal in Ganzhou, East China's Jiangxi Province on Wednesday, unanimously agreeing to suspend or reduce production from June, with at least 15-day production suspensions or output cuts of more than 30 percent, eeo.com.cn report on Monday.
Due to the sluggish global economic recovery and the negative impact of China-US trade friction, demand for tungsten has weakened and the price has been forced down. The overall revenue of the industry has declined, according to a statement released in May by the China Tungsten Industry Association (CTIA).
In the first quarter, the overall output of main tungsten producers increased by 3.28 percent year-on-year, while exports stood at $373 million, down 6.58 percent year-on-year, showed data from the CTIA.
The price of tungsten has fallen, with the average price of APT only 142,900 yuan ($20,615.73) per ton in May, leading to industry losses. Industry insiders suggest that the losses were the main reason for the proposal, said eeo.com.cn.
China has more than half of the world's tungsten reserves, and it has roughly 80 percent of global supply of tungsten, according to the report.
As a national strategic resource, tungsten mining is restricted by quotas of 91,300 tons annually. However, actual production is much higher because tungsten is a byproduct of molybdenum ore mining, said the report.
APT is the most important precursor for the majority of tungsten products, according to the International Tungsten Industry Association.