Weak Demand in Chinese Tungsten Market

Opening this week, Chinese tungsten market continues last week’s fierce gains. Prices of tungsten goods quickly break through different levels and with the support from supply side, the momentum is still advancing. 

But buyers show less interest in asking prices and tungsten goods have a price but no sales, influenced by weak demand and high raw materials price. 

This year, with the intensive introduction of environmental policy, continued enhancing and wider government supervision and inspection, supply side has directly influenced. The supply from tungsten mine is tight due to the limited production policy and reducing production to support price from miners. With the expectation of a steady recovery of demand, tight supply and high price will be the basis running law in the tungsten market. The current price of wolframite concentrate stand at RMB 106,000/ton, and still has room to rise.

Compared to the blistering supply side, market demand has been in a downturn in recent two months. Traditional off-season, environmental inspection and cost pressures together limit the purchasing power in the consumer side. But this cannot persuade miners and some tungsten enterprises who in the long-term cost overhang to stop their determination of supporting high price. The poor trading atmosphere in the market has made businesses become more cautious. 

Overall, the tungsten market is in short-supply situation, most APT manufacturers are optimistic about raw materials market thus quoting higher price. Powder and alloy companies become more cautious, their operations are mainly following market trend.

Price of tungsten goods on Aug. 30, 2017

Picture of wolframite concentrate

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