China’s Domestic Tungsten Price Kept Firm in Early July Due to Tight Supply

Details: Category: Tungsten's News; Published on Monday, 05 July 2021 19:10; Written by Shuxia; Hits: 435

Analysis of latest tungsten market from Chinatungsten Online

China’s domestic tungsten price kept firm in the week began on Friday, July 02, 2021 as the strong rised mentality in the upstream has driven back-end alloy enterprises to increase their offers. But actual transactions seemed not improved as expected.

It can be seen that confidence in the market is still not unified. Some are concerned about the severe situation of international epidemic, and demand and cost pressures under high export freight rates, as well as corporate operating profits, while some are optimistic about the effective prevention and control of epidemic represented by China and the stable economic recovery. Affected by the inflation, and with the increase in investment in the production, environmental protection and transportation departments of enterprises, market offers remain firm. Participants mainly pay attention to the new guide prices for the first half of July.

Viewing from the actual inquiry and procurement experience of Chinatungsten Online, at present, all industry chain from tungsten concentrate to downstream, including powder, cemented carbide, tungsten copper, high-density alloys, etc., there are different degrees of increase. On the one hand, it is due to the early 40% increase of copper, aluminum, lead, zinc and molybdenum products, which has already built up market psychological expectations; on the other hand, due to cost pressure, companies adjust quotations to obtain corresponding market profits or returns. The industry believes this is a market restoration. The process is not completely unreasonable speculation.

However, the risks brought by the rapid rise in a short period of time should not be underestimated. Product price increases need to be gradually digested and accepted by the downstream market in order to maintain the healthy liquidity of the spot market. Therefore, offers in the tungsten market may gradually stabilize.

Prices of tungsten products on July 5, 2021

domestic tungsten price image