China’s APT Price Has Declined 2.71 Percent Since Early November

Analysis of latest tungsten market from Chinatungsten Online

Since late October, although the impact of international energy prices has continued, with the effectiveness of domestic measures to ensure supply and price stabilization, domestic energy and raw material costs have dropped significantly. Coupled with industry concerns about the off-season consumption in the fourth quarter, market bearish sentiment has increased. Sellers considered profit-taking while downstream buyers sought for lower prices. 

As of last Friday on November 26, 2021, the price of tungsten concentrate has fallen from $18,095.2/ton to $17,142.9/ton, a decrease of 5.26%; APT price fell from $313.9/mtu to $295.9/mtu, a decrease of 5.71%; tungsten powder price fell from $42.2 /kg to $41.0/kg, a decrease of 3.01%.

The main positive aspects that currently support the tungsten market include: 1) Resource scarcity and mining control to maintain the bottom of raw material prices, holders are reluctant to sell at a low price to seek higher value, and the increase in spot resources is limited; 2) Requirements for environmental protection and safety under the dual-carbon vision are expected to become stricter, and corporate environmental protection costs, safety costs, and power costs are relatively strong; 3) Imported inflation has caused rising pressure on global prices. Corporate labor, transportation, financing and other comprehensive costs have increased; 4) Domestic economy has grown steadily. Aerospace, medical and military, 5G, new energy, intelligent manufacturing and other fields have brought new application scenarios to tungsten products.

The negative aspects include: 1) Climate and epidemic put pressure on the smelting production of high-energy-consuming enterprises and the consumption of downstream terminals; 2) Repeated epidemics overseas and adjustments to economic and trade measures have brought greater instability to the export market; 3) The mining layout of overseas tungsten mines affects the balance of supply and demand in the international market to a certain extent, and increases the pressure of competition as well; 4) The insufficient supply of domestic high-quality and high-value-added alloys and downstream products weakens the domestic voice in pricing of raw materials; 5) The impact of short-term seasonal factors is obvious, and the poor market consumption expectations press raw material market.

Prices of tungsten products on November 29, 2021

Picture of tungsten ore 

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