Tungsten Concentrate Historic Highest Price

Tungsten concentrate historic highest price is RMB 157~158 thousand per ton, it is price of first grade in national standard, APT price is 240 thousand yuan per ton at the same period. Compared to price in 2010, it rises for 40.9%, average price rises for 56.8%. According to historic record, Chinatungsten Online regarded it as the highest price of tungsten concentrate in RMB.

After global economy went through crisis in 2008, China carried out unprecedented 4 thousand billion economic stimulation plan which prevent China’s economy from influence of economic crisis, as well as consistent and stable increase. Besides from the macro economic factor, there are also factors that has reference value for present tungsten products market.

According to everyday economic news reporter reference, current tungsten concentrate price is affected by three factors, supply restriction, strong demand and increase of exploration cost.

1. Tungsten Concentrate Supply Restriction

Hunan and Gannan area is the main tungsten production area in the world. Since March, 2011, it starts environmental protection address activity for tungsten production enterprises, urges some mines to shut down and repair. In May, government of Hunan Province issued rules for mining resource exploration, start special activity of regulation. Combat exploration of mines without license and limitation, it results in exploration amount reduced this year. It is similar to the strict environmental measures in the third quarter of 2017.

2.Strong Tungsten Products Demand

Due to rapid recovery of world economy during economic crisis, results in the price going up of tungsten products both in and abroad. Take Jiangxi Province as example, during January to June in 2011, tungsten products exportation amount reaches 100 million dollars, it increases 31.23% compared to the last half year. At the same time, there are two projects of deep machining in the first half year of 2011, one is cooperation project between Xiamen Tungsten with China Minmetal of 4000 tons tungsten carbide, the other is cooperation between H.C. Starck and Jiangwu Group of 30000 tons tungsten deep machining products. The two projects increase the demand for domestic tungsten concentrate.

3.Tungsten Concentrate Exploration Cost Increasing

From the beginning of 2001, tungsten concentrate exploration cost is not only affected by labor cost and power price, but also producing limitation and waste address policy.

4. Dream Bubble of Fanya Metal Exchange

Besides from the above three factors, Chinatungsten Online hold the view that Fanya Metal Exchange founded in 2011 is also a part of reason causes high price of tungsten products. Since it is founded, either social public, government or professionals from related association didn’t realize its essence of Ponzi scheme. So in the first batch of metal, tungsten is included. With the injection of Fanya cargo and money, tungsten products price increases unreasonably. It is inevitable to reach the highest historic point. Of course, many fanya representatives are under custody and judicial process. If inventory of APT in fanya flow into market, it will bring impact to tungsten products market in a short time.

In summary, from the above historic statistics, incident and tungsten products market, factors affect tungsten concentrate price are similar. Besides from strict environmental protection, human resources and power cost, we believe with support policy after the 19^th CPC congress and belt and road initiative project being carried out, demand for tungsten will also increase. Although tungsten concentrate price lowers for a short time, we can have expectations that it will reach historic point or even break it someday.

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