China Tungsten Prices Are Expected to Rise in May

Analysis of latest tungsten market from Chinatungsten Online

China tungsten prices are under pressure affected by the decline in new average tungsten forecast prices from Ganzhou Tungsten Association and offer levels from listed tungsten companies. As orders for downstream alloy products are in a relatively low level, traders remain low trading activity and transaction prices mainly hover round the new guide prices. 

In the tungsten concentrate market, the impact of tight supply to the market reduced at the time of difficult sales, but the cost side gets support from the environmental protection inspection and the control in mine production. Sellers are reluctant to sell while buyers also have not high willingness in purchasing. Market participants now wait for the next moves in environmental inspection, the volume of import and export and foreign tungsten market. 

Jiangxi Tungsten also released its new offer for May: wolframite concentrate was quoted at $15,000/t, down $312.5/t compared with the second half of April.

Prices of ammonium metatungstate (APT) are adjusted in line with new guide prices at the level of $256/mtu. Smelting factories are hesitating in reducing product prices while downstream try to force prices down. Most factories remain low operating rate to ease the imbalanced relationship between supply and demand, and risks of price inversion under the uncertainty of Fanya’s stocks. 

Looking ahead, the tungsten market will be supported by the decline in tungsten resource grade, rising mining costs, increased environmental protection pressure and tight supply of raw materials, so the space for price decline is limited. But market uncertainties still exist and the consumption in the terminal market is under pressure. In the short term, tungsten prices are expected to remain stable with good momentum and return to a relatively reasonable range.

Prices of tungsten products on May 9, 2019

Picture of tungsten powder 

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