How Chinese Tungsten Market Will Go in Late 2018

Analysis of latest tungsten market from ChinaTungsten Online

Tungsten prices were in the downward trend last week on lowered tungsten average prices released earlier last week and bad trading atmosphere in the market. With the support of tungsten ore market, price decline was limited, but tended to be weak under demand pressure. 

Chinese tungsten market has been slow since the second of this year. Although environmental protection increased the cost of mining to reduce the supply of tungsten ore, resulting in raw material price rebound, continued weak demand decreased actual transaction prices. 

What are negative factors in the market? In a word, the weakness in demand side is the root. 

Sino-US dispute has dominated the whole trading environment since the year and thus market participants became cautious on financing. The sluggish manufacturing industry also affected tungsten market to some extent. Zhuzhou, Sichuan and other tungsten carbide and alloy factories cut their production greatly; orders reduced by 20%-30%, some enterprises even up to 50%, according to Chinatungsten Online.

The demand itself is bearish, which directly led to bad trading atmosphere in the market. As mentioned above, manufacturers do not face much pressure from stock under environmental protection, but continued thin trading weakens confidence greatly. And the difficult sales in raw material market increases spot resources, coupled with capital pressure at the end of this year, most insiders consider profit-taking. That will make the market at the buyer’ side.

When tungsten market will be recovered? In addition to supports from costs and supply side, the stabilization in tungsten ore market also has some influences on it. But how the market will go?

The policies for tungsten industry, relationship between supply and demand in Chinese market are still the most important factors for global market. Overall, tungsten concentrate output outside China is stable, but in China, tungsten ore mining, resource endowment, mining or concentration cost, safety and environmental protection are strictly controlled by the government, which would strongly support the stability of supply and demand, and prices in the tungsten market. In the further, tungsten prices will stabilize, according to the report from China Tungsten Association. 

Prices of tungsten products on Nov. 26, 2018

Picture of tungsten powder

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